Everyone should keep 1 per cent of their assets in Bitcoin, Virgin Galactic chairman says
Chamath Palihapitiya believes that the cryptocurrency is a great form of crisis insurance
Chamath Palihapitiya, who serves as a chairman of Richard Branson’s space company Virgin Galactic, believes that everyone should invest in as a form of crisis insurance.
As Palihapitiya said in CNBC’s show Squawk Box, the number of assets kept in Bitcoin should be around 1 per cent of a total amount.
According to the Virgin Galactic chairman, Bitcoin offers a fantastic hedge which is uncorrelated. To hold such an asset in the traditional financial world where there is a lot of risk to the downside is a unique opportunity, Palihapitiya believes.
Still, Palihapitiya does not expect crypto markets to grow amid the coronavirus fears.
“I don’t think when you wake up and see a coronavirus scare and the Dow down 2,000, you should be going in and buying Bitcoin – that is an idiotic strategy,” he claimed.
Palihapitiya also criticized Warren Buffet for his skepticism towards cryptocurrencies in general and Bitcoin in particular. “He is completely wrong and outdated on this point of view,” Virgin Chairman said.
Palihapitiya has been supporting Bitcoin for quite a while. Virgin Galactic, which is offering commercial flights to space and is now preparing to conduct its first flight later in 2020, with Branson on board, is accepting Bitcoin as a means of payment.
Chairman told CNBC that it received 7,957 “registrations of interest” for its flights, which is around $2.39 bn in cash equivalent.
At the time of publication, one could hardly call Bitcoin a safe haven asset, as the world’s major cryptocurrency lost all of its February growth within a week. Currently, Bitcoin is down 3.85 per cent to $8,781.
FURTHER READING: Warren Buffett says no to crypto investments