Billionaire investor Chamath Palihapitiya says investors would be reckless to ignore what two of the richest people in the world are doing with their own portfolios.
In a new episode of The All-In Podcast, the CEO of venture capital firm Social Capital thinks people should be aware that big names like Elon Musk and Jeff Bezos are selling shares of their companies.
“We have the stock market at absolute all-time highs, we have crypto at absolute all-time highs, we have the art markets… at absolute all-time highs. We have inflation at a 30-year high. We have 10-year break-evens at a 25-year high. We have one-point some-odd trillions of dollars that we just approved last week [in Congress], and we are still horse-trading on another $1.8 trillion dollars of stimulus…
The two most important founders of our generation, the two smartest people who have really consistently won, Elon Musk and Jeff Bezos, have collectively sold more than $11 billion of their holdings this year alone…
If the smartest people in the world are now selling their core holdings that they told you they would never sell, and you are not reconsidering your position on things, you’re either much smarter than them or you’re being really, really reckless.”
Moving on to crypto, Palihapitiya thinks would-be investors need to consider functionality and use-case value before investing their money into projects.
The CEO says,
“The writing is on the wall, which is Bitcoin is gold, Ethereum looks like it’s trending to be silver, and Solana could be the first – but there will be others that come after it – of real developer ecosystems that can be built on top of it.”
Palihapitiya references wireless gateway blockchain project Helium (HNT) and distributed GPU project Render Token (RNDR).
“Helium is an interesting project that’s trying to build a completely decentralized 5G infrastructure. Render is… trying to build a completely decentralized graphical processing structure, GPUs essentially. In both of those things, you can quantifiably economically measure what the value is that people get.
In the case of Render, you’re basically displacing an AWS [Amazon Web Services] instance. That has a price and a value. For Render to be valuable, there’s an economic value that it replaces. If you’re joining a Hotspot, that has an economic value where you hadn’t necessarily had to pay to get internet connectivity, if you all of a sudden were on the Helium network. That displaces a measurable economic quantum.
Understanding that and taking the absolute value of that is the best way of understanding which projects have potential… where is there developer interest and where is there measurable economic activity? At the intersection of those is where the really compelling projects come in.”
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