Chamath Palihapitiya predicted on a podcast that bitcoin will eventually be hacked and fall to zero. He cited concerns about its limited fungibility and financial privacy, along with the possibility that AI could compromise its security. The attack he described is hypothetical: no catastrophic Bitcoin protocol breach has occurred, and the source notes that SHA-256 hashing and wallet-signature security are distinct mechanisms.
The forecast reverses his earlier predictions that bitcoin could reach $1 million. In November 2024, he called his earlier bitcoin sales a “$3 or $4 billion mistake.” He says he no longer holds bitcoin directly, having exchanged his long-term exposure for equity in Digital Currency Group.
