Bitcoin billionaire and venture capitalist Chamat Palihapitiya believes cryptocurrencies are countering and destroying capitalism. Through this, they can help create a better financial future for the world.

In a new episode of the All-In podcast, Palihapitiya talked about cryptoassets and decentralized finance (DeFi), stating that cryptocurrency is already dramatically changing the way capital is allocated. He stated that cryptocurrencies are destroying capitalism, which is not just a return on investment, but it's the tonnage of dollars.

“It destroys capitalism. If you think about what capitalism is, it's not just a return on investment, but it's the tonnage of dollars. So, anyone who's a big investor here - you're putting more and more dollars in for more and more dollars out.

That's the pressure. These guys are under enormous pressure to get a 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, they’re seeded with a few million dollars, and these are $60- $80 billion market cap projects. And so, I don’t know how capitalism survives in that world.”

Since cryptoassets have an autonomous nature and rely on code rather than people, this is a game-changer. Cryptocurrencies cannot be managed.

“Governance goes completely out the window. Because you're essentially replacing a set of norms that we've all agreed to about what a company is. It's an LLC or C-Corp that is incorporated with laws. There's recourse for you, you can go to these places and sue them. Now it's a DAO (decentralized autonomous organization).

It's a bunch of rules written in a blockchain. ‘Here’s how it all works, here’s how I make my HR decisions. Here’s this, here’s that.’ And then you basically decompose everything into a service where it’s recursive. You cannot build with me unless you make yourself buildable to others.”

Palihapitiya said the end result is a digital transformation that will greatly change the nature of capitalism. He thinks that this will destroy wealth, but this does not bother him, since it will be better for the world.

“When you add all these… things together, to me it’s the most incredibly, positively disruptive force we have seen. I think it will destroy wealth. I frankly couldn’t give a fuck and I think it’s better for the world.”

© 2021, Eva Fox | Tesmanian. All rights reserved.

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