Billionaire Chamat believes that by 2025, Bitcoin will reach $500,000.

Social Capital CEO Chamath Palihapitiya recently predicted that Bitcoin will reach $500,000 per coin by the end of this year.

The billionaire venture capitalist forecasts that banking analysts at companies such as Standard Chartered and Bernstein believe the halving will be significant but more modest for valuations over the next 18 months.

How Bitcoin will work after mining

In an episode of the All In podcast that aired on Friday, Palihapitia reviewed Bitcoin's historical price performance at specific times following each historical halving event. For example, property prices have grown 7.8x in the 18 months since the third quarter of May 2020.

The ‘halving' is a function in the Bitcoin software that halves supply inflation every 210,000 blocks – once every four years. In theory, these events help create a supply shock for BTC that drives up the asset's value.

The fourth half of Bitcoin It happened on April 20 2024, which reduced the estimated daily volume of Bitcoin from 900 BTC to 450 BTC.

Using Bitcoin's performance after the third half as a model, in October 2025 Bitcoin will reach $497,977.

Where does the question come from?

To drive demand, the CEO highlighted the “increasing body of countries” that are considering adopting dual currency status, such as El Salvador.

“They look at their local currency, then they look at Bitcoin, then they say, ‘We need both of these two things,'” Palihapitiya said.

“One when you trade random goods and services every day and two, when you need to buy a fixed asset with residual value – you use something like BTC,” he continued.

If Bitcoin were to reach more than $500,000 per coin, the investor believes that Bitcoin will “completely replace” gold and even begin to have trading services for hard assets.

Palihapitiya also acknowledges the importance of the newly launched Bitcoin ETFs, which have “commercialized Bitcoin” and are allowing it to “cross the line”. Based on their strong earnings this year, Standard Chartered analysts are calling for Bitcoin to reach $200,000 by the end of 2025.