LinkedIn co-founder on next big tech to watch

It could be your wrist or your car, neither or both, or something else entirely. But for those betting on where the Internet of Things will be a big hit in the coming years, don't bet against the home, LinkedIn co-founder Reid Hoffman told CNBC Monday.

"It's not like even making a prediction," Hoffman said of the completely connected home on "Squawk Alley." A house running on a home operating system connected to the cloud, he said, is as certain as "apples [falling] from trees."

So did he think Google got a deal on Nest? Sort of.

Read MoreGoogle to buyNest for $3.2 billion in cash

"Is Nest a great buy? Yes. Is it a great buy at that price? I don't know," Hoffman said.

In addition to the Internet of Things, the LinkedIn chairman, who was promoting his new book on reinventing the boss-employee relationship in the networked age of Facebook and Twitter, also explained why he has been investing in bitcoin.

"It's very hot. It's very early. It's very speculative," said Hoffman, who owns bitcoins but is more interested on the ledger side. "You can have a bitcoin stand for something that isn't just bitcoin," he explained. "It could mean your car."

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The car, for example, can be accounted for on a general ledger that "you can do electronic contracts, you could put leans against it, you could do all kinds of other things, moving it all into the electronic age," he added.

But it's the socially connected age that Hoffman is focused on in the new book "The Alliance: Managing Talent in the Networked Age," which claims that "Silicon Valley's success comes from the way its companies build alliances with their employees," and offers employers and employees tips on how to modernize their relationship.

"Everyone knows that lifetime employment has basically gone the way of the Dodo bird," said, Hoffman, co-author of the book. The question now is, he said, "how do you mutually invest in each other?"

—By CNBC's David Montalvo