The renowned billionaire CEO of Social Capital and Virgin Galactic Chairman, Chamath Palihapitiya, has called Bitcoin a kind of disaster insurance against govt’s opting for bad financial decisions.
Within a recent interview with Unchained Podcast on 23rd June, Palihapitiya told that the hard-earning people need something like Bitcoin as an insurance, as the cryptocurrency is “really fundamentally uncorrelated” to the results of legislators behaving badly.
Adding further, the CEO acknowledged that for the Bitcoin price to skyrocket at this period of time, things would need to go terribly wrong within the economic system, with disastrous impacts on your family & friends.
“If your Bitcoin bet pays off,” Palihapitiya added, “it is going to be cataclysmically destructive for the whole world. And that’ll have enormous consequences to several people we all know and care about who weren’t hedged in Bitcoin. And so you almost don’t want it to happen.”
Amassing “Massive Asymmetric Payoff” From Such A Little Investment
Palihapitiya himself is an early investor in Bitcoin, buying a million Bitcoin for $80 USD, whose price reached the billions when the token hit its all-time high price in Dec 2017.
No wonder the billionaire claims that Bitcoin [BTC], unlike “2nd – and 3rd – tier” cryptocurrencies like Ethereum [ETH], is one among the few ways to amass a “massive asymmetric payoff” from such a little investment.
“You want to ascertain that a little amount of insurance can basically make you to whole,” Palihapitiya said, citing a $1,000 USD payoff for a $1 USD investment as an honest example. “That’s why I just think that, you know, you ought to take 1% of your portfolio, and invest it into Bitcoin.”
“At the end of the day, any other asset class — equities, debt, real estate, commodities – they’re all tightly, tightly coupled to a legislative framework and an interconnectedness within the financial markets that brings together many of the governments that are kind of behaving in this manner .”
The billionaire has also predicted that the worth of Bitcoin within the future could is expected to reach many dollars, or even drop to zero.