Social Capital CEO, Chamath Palihapitiya, predicts Bitcoin will reach $500,000 per coin by the end of 2025, outpacing predictions from analysts at Standard Chartered and Bernstein. This prediction is based on Bitcoin's performance following its previous halving cycles. The 'halving' is a Bitcoin software function that halves its supply inflation rate every 210,000 blocks, creating a supply shock that drives up the asset's price.
Palihapitiya's projection uses Bitcoin's performance after its third halving as a model. He also points to an "increasing body of countries" that may adopt a dual currency standard, like El Salvador, to drive demand. If Bitcoin reaches over $500,000 per coin, Palihapitiya believes it will "completely replace" gold and begin to have transactional utility for hard assets.
The CEO also acknowledges the significance of newly launched Bitcoin ETFs, which have "commercialized Bitcoin," allowing it to "cross the chasm." Based on their powerful inflows this year, analysts at Standard Chartered predict Bitcoin to reach $200,000 by the end of 2025.