Chamath Palihapitiya Warns Bitcoin Upside Is Capped, Predicts Fall to Zero

Billionaire investor Chamath Palihapitiya warned that Bitcoin's upside is structurally capped and predicted the cryptocurrency will eventually fall to zero after being compromised by a major hack. Palihapitiya pointed to advancing technologies, including recursive artificial intelligence and quantum computing, that could break Bitcoin's SHA-256 cryptographic security and target early holdings like Satoshi Nakamoto's wallet. He argued that governance divisions hinder timely upgrades to quantum-resistant encryption and cited lack of fungibility as a barrier to central bank adoption. Palihapitiya revealed he transferred his direct Bitcoin holdings into Digital Currency Group equity.