Bitcoin Billionaire Chamath Palihapitiya Says Crypto Destroys Capitalism And That’s Better for the World

Bitcoin billionaire and venture capitalist Chamath Palihapitiya thinks that cryptocurrencies counter capitalism and could help create a better financial future for the world.

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

It destroys capitalism. If you think about what capitalism is, its not just a return on investment, but its the tonnage of dollars. So anyone whos a big investor here youre putting more and more dollars in for more and more dollars out.

Thats the pressure. These guys are under enormous pressure to get tonnage of dollars through the system in a productive way. These guys are at the forefront.

But when you look at most of the projects on Solana [SOL], theyre seeded with a few million dollars, and these are $60-$80 billion market cap projects. And so, I dont know how capitalism survives in that world.”

Palihapitiya says the autonomous nature of crypto assets, as well as crypto-based systems of governance that simply rely on code instead of human beings, are another game changer.

Governance goes completely out the window. Because youre essentially replacing a set of norms that weve all agreed to about what a company is. Its an LLC or C-Corp that is incorporated with laws. Theres recourse for you, you can go to these places and sue them. Now its a DAO (decentralized autonomous organization).

Its a bunch of rules written in a blockchain. Heres how it all works, heres how I make my HR decisions. Heres this, heres that. And then you basically decompose everything into a service where its recursive. You cannot build with me unless you make yourself buildable to others.”

The end result, according to Palihapitiya, is a digital transformation that will reshape the nature of capitalism in a remarkably positive fashion.

“When you add all these… things together, to me its the most incredibly, positively disruptive force we have seen. I think it will destroy wealth. I frankly couldnt give a fuck and I think its better for the world.

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