PANews reported on March 5th that venture capitalist Chamath Palihapitiya stated at the World Government Summit that Bitcoin has structural flaws in terms of privacy and fungibility, making it difficult to serve as a long-term reserve asset for central banks. He pointed out that on-chain transaction traceability means that individual BTC may be treated differently due to association with illicit activities, weakening its fungibility; therefore, gold is more in line with the needs of sovereign institutions.

Chamath believes that Bitcoin's market capitalization will face obstacles if it relies primarily on central bank demand, and other crypto assets may have room for improvement. He is optimistic about stablecoins, especially gold-backed stablecoins, for their potential applications in payments and settlements.