Chamath Palihapitiya, chairman of spaceflight company Virgin Galactic and founder of venture firm Social Capital, says that everyone should have 1% of their assets in bitcoin.
Bitcoin Is An Uncorrelated Asset
According to the Virgin Galactic boss, the world’s largest cryptocurrency is a “fantastic” hedge, Palihapitiya says during an interview with CNBC on Wednesday. The billionaire investor added that bitcoin is “completely uncorrelated to the world and how the world works.”
Virgin Galactic was reported to have sold a space ticket to the Winklevoss brothers for more than 300 BTC back in 2014, in an attempt to support the use of bitcoin.
According to a recent report, more than 600 people have reserved a seat aboard the company’s six-passenger SpaceShipTwo craft. Moreover, which is designed to carry customers and payloads on brief trips to suborbital space and back.
Virgin Galactic halted ticket sales in December 2018 after its latest SpaceShipTwo vehicle, VSS Unity. And He reached space for the first time, on a piloted test flight. But that hiatus will soon come to an end, company representatives said.
Buy Some Bitcoins And Keep It For Long
During the interview with CNBC, Palihapitiya maintained stated that,
“You quietly over some period of time accumulate a position and then just never look at it again and hope that that insurance under the mattress never has to come due. But, if it does, it will protect you,” Palihapitiya said.
Palihapitiya Vs Buffet
Palihapitiya who described popular business tycoon, Warren Buffet as an “exceptional person”, goes contrary to Buffet’s opinion of cryptocurrency. According to Warren Buffet,
“Cryptocurrencies basically have no value,” Buffett said, noting that they don’t produce anything or mail investors checks. Instead, the value is derived from the belief that someone else will value the more highly in the future. “In terms of value, you know zero,”
As Buffet believes cryptocurrencies are valueless and says he plans to never use them, Palihapitiya says cryptocurrencies should make at least 1% of every portfolio.
Palihapitiya, who claims to have learned a lot from Buffet both from afar and in person, disagrees with Buffet. He says that the billionaire is completely wrong and outdated from his point of view.