• Chamath Palihapitiya, a Bitcoin billionaire, claims that cryptocurrency is destroying capitalism, which is good for the world

  • Chamath Palihapitiya, a Bitcoin billionaire and venture capitalist, believes that cryptocurrencies can help create a better financial future for the world.

    Palihapitiya makes the case for crypto assets and decentralized finance (DeFi) in a new episode of the All-In podcast, claiming that crypto is already dramatically changing the way capital is allocated.

    “It annihilates capitalism. When you consider what capitalism is, it is more than just a return on investment; it is the tonnage of dollars. So, if you’re a big investor here, you’re putting more and more money in for more and more money out.

    That is the stress. These guys are under enormous pressure to move a large amount of money through the system in a productive manner. These guys are on the cutting edge.

    However, most of the projects on Solana [SOL] are seeded with a few million dollars, despite the fact that they have a market cap of $60-$80 billion. As a result, I’m not sure how capitalism can survive in that world.”

    Another game changer, according to Palihapitiya, is the autonomous nature of crypto assets, as well as crypto-based governance systems that rely solely on code rather than humans.

    Governance is thrown out the window. Because you’re essentially replacing a set of norms about what a company is that we’ve all agreed on. It is a legally incorporated LLC or C-Corp. You have options; you can go to these locations and sue them. It is now a DAO (decentralized autonomous organization).

    It consists of a set of rules written in a blockchain. ‘This is how it all works, and this is how I make HR decisions. ‘Here’s this, and here’s that.’ Then you basically decompose everything into a recursive service. You won’t be able to build with me unless you first make yourself buildable to others.”

    According to Palihapitiya, the end result will be a digital transformation that will reshape the nature of capitalism in a remarkably positive way.

    “When you add all of these… things together, it’s the most incredibly, positively disruptive force we’ve ever seen,” says the author. I believe it will devastate wealth. I honestly couldn’t care less, and I believe it’s better for the world.”

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