Recently, billionaire venture capitalist Chamath Palihapitiya, who is the founder and CEO of investment firm Social Capital, as well as Chairman of spaceflight company Virgin Galactic, has revealed he believes bitcoin has effectively replaced gold.

Palihapitiya’s words came during an interview with CNBC’s Scott Wapner at the Delivering Alpha conference, where the billionaire noted he is concerned about inflation and is eyeing three types of assets in the meantime: hypergrowth companies, cash-generating businesses, and non-correlated assets like bitcoin.

During the interview, Palihapitiya said hypergrowth companies, which he defined as businesses growing 50% or more a year, can “always out-run inflation.” He looked at stocks generating cash like mining stocks.

As for non-correlated assets, Palihapitiya pointed to cryptocurrencies like BTC and Solana. Solana has seen its growth explode over the last few months, becoming one of the largest cryptocurrencies by market capitalization thanks to it.

The billionaire said these cryptocurrencies are a “great counterintuitive hedge” against the other two types of investments and noted he believes bitcoin has effectively replaced gold and will continue to do so.

He said:

It’s very hard for me to give a price prediction, but I can pretty confidently say that bitcoin has effectively replaced gold

Palihapitiya also noted he worries a lot of money has been pumped into the cryptocurrency ecosystem but said he believes that when “we start to balkanize these supply chains and regionalize, because of China, prices are going to go up.”

As CryptoGlobe reported, in January of this year Palihapitiya predicted BTC’s price could hit $200,000. The flagship cryptocurrency is up over 40% year-to-date, while gold itself has seen its value drop over 10% in the same period. Gold’s market capitalization is estimated to be around $11 trillion, while Bitcoin’s market cap is at $810 billion.

The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.

Featured image via Pixabay