Crypto is dead in America, according to tech billionaire Chamath Palihapitiya. Chamath Palihapitiya is a Silicon Valley venture capitalist who has become a tech firebrand. He supports SPACs, a financial tool enabling private firms to go public with less SEC oversight.
Chamath Palihapitiya, a tech investor, has a far more cautious outlook on cryptocurrencies than he had two years ago when he said that bitcoin had replaced gold and predicted it would rise to $200,000 in value.
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“The crypto companies were probably the ones that were the most threatening to the establishment. And they were the ones that, in fairness to the regulators, did push the boundaries more than any other sector of the startup economy. Now they’re paying the price for that. Unfortunately, the bill has come due for them,” he says.
Palihapitiya attributed a significant portion of the death of cryptocurrency to regulators, who have been much more active in pursuing the industry’s bad actors.
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Even though there are already more than 20,000 cryptocurrencies, investors only engage with a few of the most well-known cryptocurrencies in the U.S.
He made his remarks as the Securities and Exchange Commission intensified its attempts to crack down on the sector. At little over $27,300 right now, Bitcoin is selling at a 60% loss from its all-time high.