Billionaire venture capitalist Chamath Palihapitiya, who is the founder and CEO of investment firm Social Capital, is pushing back on the notion that Russia’s invasion of Ukraine will be a net positive for cryptoassets at the expense of the US dollar.
Palihapitiya, who has been a supporter of cryptoassets, says that Russia’s invasion of the Ukraine and the subsequent weakening of the US dollar would not bring about the “crypto boon we’ve all been waiting for.” Instead, the billionaire investor said that both Bitcoin and USD were “winning right now.”
In a series of tweets, Palihapitiya claimed that Bitcoin was distinguishing itself as an “institutional grade safe haven” asset. Importantly, he argued that BTC was managing to separate itself from every other cryptoasset on the market, in addition to US denominated assets such as stocks and bonds.
He also noted that US denominated assets were experiencing a similar phenomenon versus assets bid in other currencies.
As pointed out by Palihapitiya, when Bitcoin falls other cryptoassets tend to suffer worse losses, with a concurrent effect happening to non-US assets when dollar-denominated equities fall.
Bitcoin dominance, which measures the percentage of value of BTC across the crypto market capitalization, has risen from 39% to 43% since mid-January.
Michael Saylor, founder and CEO of MicroStrategy, published a tweet saying that Bitcoin was the solution to a number of pertinent issues on the world stage, including “inflation, regulation, war.”
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.