NFTs are the Next Frontier of Digital Currencies says Bitcoiner Chamath Palihapitiya
He’s currently “building a fairly sizable portfolio” of non-fungible tokens (NFTs). The Social Capital CEO says while Bitcoin will displace gold, it will be the stablecoins that will replace the US dollar.
“I don’t even know what that is,” was Chamath Palihapitiya’s reply to DeFi last summer. But now things have changed, so much so that the CEO of Social capital is “building a fairly sizable portfolio” of non-fungible tokens (NFTs).
An early executive at Facebook, Palihapitiya, shared in his interview with Bloomberg that he is buying digital arts, virtual trading cards, which “may sound crazy to some. But I do think that that's the next frontier of digital currency and digital assets.”
Soon, they will be publishing their holdings. Although he’s not ready to share the details yet, Palihapitiya said he is “very excited.”
As for Bitcoin, he is still as bullish on the leading digital currency as ever, which he thinks is “very important because it just shows the fragility of the traditional financial infrastructure.”
According to him, while Bitcoin will replace gold and become a de-facto reserve currency, it won’t be BTC that would displace the US dollar rather, it will be a stablecoin. Palihapitiya explained,
“There are companies around the world that are replacing one fixed U.S. dollar with one digital token of a U.S. dollar. And by simply making that small abstraction they're able to completely build financial rails that didn't exist.”
“There is a revolution happening,” he said, which might not be felt in the United States because its financial services infrastructure is robust. But when you look at the developing world and any market where there is any form of currency manipulation or currency instability, stablecoins are “the future,” he explained.
Here, “Bitcoin is a canary in the coal mine for a completely virtual largely anonymous financial reality,” said Palihapitiya.
You can see the full interview here: