Former Facebook boss advises how to invest in BTC
Chamath Palihapitiya, a former Facebook boss and president of Virgin Galactic, says that everyone should invest a symbolic 1% of their assets in Bitcoin. By the way, he criticizes Warren Buffet for his critical view of the cryptocurrencies
The former Facebook boss treats BTC as a kind of insurance
Since 2013, Chamath Palihapitiya has been claiming that every investor, institution or retailer should invest even 1% of their assets in BTC. Now on CNBC’s air, he added that Bitcoin is a new kind of asset class, not related to traditional shares and other investment assets. Then he said that investing in Bitcoin is a good idea, because the cryptic is not connected with the market we know today. However, he pointed out that, with BTC’s price volatility, using it as a safe haven could be disastrous. He noted that “when you see a general fear of coronavirus, you shouldn’t buy Bitcoins, that’s an idiotic strategy.”
However, Palihapitiya believes that Bitcoin should be seen as insurance for worse days for the economy. In other words, it suggests that the digital currency can gain during the global crisis. However, he is a perfect breeder, as he believes that it is best to invest the aforementioned 1 percent and not to observe the BTC rate any more.
“I’m not saying that when you wake up and see all this coronavirus panic and Dow Jones loses, you should be buying Bitcoins. This is an idiotic strategy. I think it’s a reasonable strategy to say that 1% of my net worth should be placed in something completely unrelated to the world and its actions. For a while you quietly gain a position and then you never look at it again and hope that you will never need this insurance under your mattress. But if you do, then it will protect you.”
– he described his investment strategy.
Assets of the 21st century
He continued by saying that it is great that everyone in the world today has access to such uncorrelated hedging assets as cryptocurrencies. By the way, he slightly criticized Warren Buffett for criticizing Bitcoin so strongly. A former Facebook boss believes that the legendary investor is “old-fashioned” in his thinking about new assets.