Chamath Palihapitiya, the billionaire CEO of Social Capital and president of Virgin Galactic, has called Bitcoin a type of disaster insurance against governments that make bad financial decisions.
In an interview with the Unchained Podcast on June 23, Palihapitiya said that hard-working people need something like Bitcoin for sure, as the cryptocurrency is “really without fundamental correlation” with the consequences of lawmakers’ misbehavior.
However, the CEO noted that for Bitcoin’s price to skyrocket at this point, things would have to go terribly wrong in the financial system, with a disastrous impact on his friends and family.
“If your Bitcoin bet is worth it,” said Palihapitiya, “it will be catastrophically destructive to the world.” And that will have huge consequences for many people we all know and care about who was not protected in Bitcoin. And then you almost don’t want it to happen. “
Sure enough to “heal you”
Palihapitiya himself invested in 2010, buying one million Bitcoin for $ 80, the value of which reached billions when the token reached its all-time high in December 2017.
Not surprisingly, the billionaire claims that Bitcoin (BTC), unlike “second and third tier” cryptocurrencies like Ethereum (ETH), is one of the few ways to get a “massive asymmetric payment” from such an investment. little.
“You want to be sure that a small amount of insurance can basically get it back,” Palihapitiya said, citing a $ 1,000 payment for a $ 1 investment as a good example. “That’s why I think, you know, you should take 1% of your portfolio, put it in Bitcoin.”
“At the end of the day, any other asset class (stocks, debt, real estate, commodities) are closely tied to a legislative framework and an interconnection in financial markets that brings together many of the governments that are type of behavior of this way “.
The billionaire has also speculated that the value of Bitcoin in the future could reach millions of dollars, or fall to zero.