In an interview with Morgan Creek Digital founder, Anthony Pompliano, Chamath Palihapitiya, billionaire CEO of venture capital firm, Social Capital, said that now could exist Bitcoin's time to shine.

"I think Bitcoin needed a moment like this for it to be relevant," Palihapitiya said. "It's still a speculative instrument, and it'due south too speculative for it to be reliable," he explained.

Bitcoin is still too turbulent

In his interview with Pompliano, Palihapitiya talked about a bevy of topics pertaining to the current global economy. In terms of replacing USD or other global currencies, Palihapitiya explained Bitcoin is still besides volatile.

 "The only market that's fifty-fifty more important than the debt markets are the currency markets," he said.

Palihapitiya explained currency markets have a relatively low corporeality of volatility, moving in value over fourth dimension. "In that, there'southward value because it allows more market participants to be active in that market and so that they tin can use it as a critical colonnade of how they run their business," he said.

Bitcoin can't be used in the aforementioned style

The billionaire said Bitcoin is immensely volatile compared to the currency markets. "You lot can't effectively use it," he posited. "Information technology pushes it into this ghetto of day traders and speculators, and right now that's where we are."

Palihapitiya explained that Bitcoin exits that "ghetto" by losing the solar day traders and speculators, while keeping some of the attraction of long-term holding.

"Then yous need to have it slowly look like the traditional infrastructure could actually implode," he said. Palihapitiya added that BTC could somewhen be seen as a "flight to safety," pending the likelihood of debasement in an endeavour to avoid traditional framework failure.

"Over the next x years, where this trajectory is going to take shape — and information technology is a 10-year trajectory — y'all'll have a lot of time to vector into it to protect yourself and to hedge yourself," Palihapitiya said, adding:

"This is either zero or millions, because what it will do is it volition create a quasi-gold standard. It'll create an index, except instead of having to own golden, where gold is endemic past central banks, it is an musical instrument that has value that's determined past and between its participants, and it's endemic by everybody."

The crypto manufacture has viewed Bitcoin every bit a type of hedge for a number of years. Pompliano himself even lobbies for BTC as an asset uncorrelated to traditional markets.

Cointelegraph reached out to Chamath Palihapitiya for boosted details, only received no response as of printing time. This article volition be updated accordingly should a response come up in.