He said marginal liquidity is flowing to prediction and equity markets, while power used for Bitcoin mining may be redirected toward AI demand.
Chamath Palihapitiya said Bitcoin bulls are contending with two constraints. He said marginal liquidity is favoring prediction markets and equity markets instead of Bitcoin, while energy used for mining could be put to more productive use in AI. The remarks frame the challenge for Bitcoin as both a capital-allocation issue and a competition for power resources, at a time when investors are weighing where speculative flows and infrastructure spending can generate the highest returns.