Chamath Palihapitiya: Bitcoin Is No Longer Optional

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Chamath Palihapitiya: Bitcoin Is No Longer Optional

Chamath Palihapitiya: Bitcoin Is No Longer Optional

Financial institutions working with Bitcoin or corporations holding Bitcoin as a reserve asset is no longer optional, according to billionaire Chamath Palihapitiya.

The billionaire, Social Capital CEO tweeted in response to PayPal’s announcement that it would start facilitating buying, selling and spending Bitcoin within its network.

Palihapitiya, a well-known Bitcoiner who famously called it ‘schmuck insurance’ back in 2015, has become even more bullish of late.

Back then the he said Bitcoin was ‘the single best hedge against the traditional financial infrastructure.’ And the billionaire Bitcoiner has recently been upping his bullish sentiment in several interviews discussing the bullish case for Bitcoin.

Social Capital CEO says Bitcoin Is No Longer Optional says Bitcoin is no longer an option

The Virgin Galactic chairman is now cutting no corners in his belief where Bitcoin is heading.

‘After PayPal‘s news, every major bank is having a meeting about how to support bitcoin,’ said Palihapitiya. ‘It’s no longer optional…’

PayPal Is Launching Crypto Services

PayPal announced last week that it was launching a cryptocurrency service. It will allow users to buy and sell leading cryptocurrencies Bitcoin, Ethereum, Litecoin and BCash.

PayPal users will also be able to pay for goods at PayPal’s 26 million registered merchants. The payments giant has said that all payments made with cryptocurrencies will be exchanged into the merchant’s local currency.

While the news about PayPal is bullish for Bitcoin, it has been met with scepticism from many in the Bitcoin space.

Prominent Bitcoin analyst PlanB called it a ‘nothing burger’ and said it had ‘nothing to do with Bitcoin.’ Other prominent names in the Bitcoin space also voiced their concerns about PayPal’s limited offering.

The thing that has upset some in the Bitcoin community is PayPal’s decision to prohibit transactions to another address, and critically not allow personal control of the private keys.

Not your keys, not your Bitcoin rings true here, and PayPal’s decision to fence off Bitcoin self-sovereignty within its platform does go against the ethics of Bitcoin.

However, PayPal might not be offering the full “Bitcoin package” but it will be working with Bitcoin.

What’s more, the BTC PayPal holds will be taken from the market, and as Chamath Palihapitiya says, it’s already triggered ‘every major bank [into] having a meeting about how to support Bitcoin.’

Social Capital CEO Chamath Palihapitiya says everyone will work with Bitcoin

PayPal Bank?

Could PayPal even become a bank? Earlier this summer, the US Office of the Comptroller of the Currency (OCC) gave the green light for banks to start offering cryptocurrency services.

Not long after, cryptocurrency exchange Kraken announced it had been awarded a banking charter to become the first cryptocurrency bank in the US.

Of course PayPal and all other financial institutions will have taken note. Why would they want to remain on the periphery of the financial industry, when they can become one of the leading players.

The payments giant onboarded 21 million new users in Q2 this year and has 346 million users worldwide. And by money held in users’ accounts, if PayPal was a bank, it would be the 21st biggest in the United States.

PayPal is also in talks to buy Bitcoin custodian, BitGo. If PayPal completes the takeover, it will become a leader in Bitcoin security, and enterprise-grade, multi-sig, multi-user Bitcoin wallets.

Then once PayPal becomes a bank, it would be so more technologically advanced for working with Bitcoin, the dinosaurs of the banking industry would either have to do the same or face extinction.

Billionaire Chamath Palihapitiya: After PayPal‘s news, every major bank is having a meeting about how to support bitcoin. It’s no longer optional...’

Chamath Palihapitiya: Everyone Is Working On How To Support Bitcoin

Bitcoin is the infrastructure the global, financial system of the future will be working with.

Whether Bitcoin becomes the reserve currency of the world, or remains a store of value, no company or even government can ignore it forever.

At a market cap of only $242 billion, Bitcoin is largely ignored by the bigger investors. As we have seen with the likes of MicroStrategy and Square Inc., however, corporate firms are holding large amounts of Bitcoin reserves on their books.

And with banks now allowed to custody and offer other crypto services in the US, every bank is going to start working with Bitcoin.

Chamath Palihapitiya is a very successful billionaire, who can foresee the way the world is transitioning.

Five years ago the Social Capital CEO said Bitcoin was schmuck insurance and should be a hedge against the flawed system. Today, and he upped his bullish sentiment.

The option today isn’t ‘should we work with Bitcoin’ it’s ‘how much Bitcoin?’ In fact, working with Bitcoin is no longer optional, it’s a must.

Author: Tommy Limpitlaw

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