Chamath Palihapitiya, the billionaire CEO of Social Capital and president of Virgin Galactic, has called Bitcoin a type of insurance against disasters caused by governments making bad financial decisions.
In an interview with the Unchained Podcast on June 23, Palihapitiya said hard-working people need something like Bitcoin as a safe guy, since cryptomoney „really isn’t fundamentally correlated“ with the consequences of bad behavior by lawmakers.
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However, the CEO pointed out 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 your friends and family.
„If your Bitcoin bet is worth it,“ Palihapitiya said, „it will be cataclysmically destructive to the world, and that would have huge consequences for many people we all know and care about who were not protected at Bitcoin. And you practically don’t want that to happen.
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Safe enough to „feel complete“
Palihapitiya itself invested in 2010, buying one million Bitcoin for $80, which reached billions in value when the token reached an all-time high in December 2017.
Not surprisingly, the billionaire claims that Bitcoin Champion, compared to „second- and third-tier“ crypto-currencies such as Ethereum (ETH), is one of the few ways to obtain a „massive asymmetric return“ from such a negligible investment.
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„You want to make sure that a small amount of that insurance basically makes you feel complete,“ 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, and 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 with the financial markets that brings together many of the governments that behave this way.
The billionaire also speculated that the value of Bitcoin in the future could reach millions of dollars, or fall to zero.