Virgin Galactic CEO, Chamath Palihapitiya, said during his recent interview with CNBC Squawk Box that everyone must dedicate at least one percent (1%) of their assets to Bitcoin as it is one of the potential hedges against the crisis.
Virgin Galactic, a Richard Branson-founded company, dedicated to building commercial spacecraft, was always known to be smitten by the potential of Bitcoin. Back in 2013, business tycoon Branson said that it is one of those technologies that would lead us to the future. In fact, the renowned entrepreneur went on to declare that he owns a fair share of this futuristic currency himself and proposed that it is worth looking into.
Bitcoin is protection against uncertain times, Virgin Galactic CEO
On Wednesday, the firm’s CEO, Palihapitiya, assured the viewers that Bitcoin serves as an exceptional hedge in times of uncertainties as all other asset classes are interconnected. One fails; all others go downhill. However, Bitcoin is decentralized, is essentially uncorrelated, he said.
According to him, the existing financial industry operates on a tremendous amount of leverage. When you witness things that are beyond your control, fall apart, and there is a huge amount of risk pushing you to the downside, you will need an asset class that is uncorrelated. Thus, I believe every average citizen of any country must own Bitcoin as a shield against such variabilities, Palihapitiya argued.
Set aside a small percentage to Bitcoin
Commenting on the economic slump resulting due to the highly-contagious coronavirus spread, Palihapitiya dismissed the assumption that the market fear will drive people to crypto. And even though Bitcoin’s image as the safe haven asset has undoubtedly taken a hit this week with Bitcoin price plunging thirteen percent (13%) in thirty-six hours due to alarming coronavirus fear, Palihapitiya said that it should not deter people from buying Bitcoin.
Palihapitiya also explained that a better approach to making short term profits in an unpredictable mark is a tried and tested method of devoting a small percentage of the net worth, around one percent, to an asset that is not influenced by the ongoing global crisis, like Bitcoin. That is the kind of insurance people need right now, Palihapitiya concluded.
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