The billionaire chairman of Virgin Galactic and CEO of Social Capital, Chamath Palihapitiya, has gone on record to call Bitcoin a type of disaster insurance. Particularly, insurance against the world’s governments making bad decisions.
Through an interview he had done on the 23rd of June, 2020, on the Unchained Podcast, Palihapitiya gave his views about it at large. He stated that Bitcoin is something that hard-working people dearly need, as the crypto uncorrelated to the consequences of legislators behaving poorly, fundamentally speaking.
Even so, the CEO warned that Bitcoin’s price skyrocketing at this point in time would mean that the financial system has gone horribly wrong, overall. This, in turn, causes a disastrous effect on one’s family and friends, according to Palihapitiya.
Great Success At A Great Price
In short, Palihapitiya explained that a Bitcoin bet paying off would mean that the world at large has experienced something cataclysmically destructive. This, in turn, would have many people across the globe, whom many care and know, suffer dire consequences as they didn’t hedge against BTC. To such a degree, Palihapitiya said, that one almost wishes that it won’t happen altogether.
Palihapitiya had invested into Bitcoin himself, back in 2010, having bought a million Bitcoin at $80 apiece. This BTC holding, had he sold at the all-time-high of December 2017, would’ve given him billions of USD in value as repayment, and even now, it stands as a massive increase in value altogether. At the time, BTC was being traded for about 9,200 USD, which makes Palihapitiya see a gain of 11,400% in his holdings already.
Massive Gains To Be Had
With this, it’s easy to believe why Palihapitiya stands convinced that BTC is nothing like the second and third generations of cryptocurrencies that spawned from it, such as Ethereum (ETH). The reasoning for this is the fact that there’s such a massive, asymmetric payoff to buying Bitcoin, as compared to other, more stable forms of crypto.
Palihapitiya explained that the idea for investing in Bitcoin is to make a small amount of financial insurance be capable of making you fully recover. He cited the fact that he managed to gain more than $1,000 out of every $1 he had invested. Thus, he stands convinced that everyone should invest 1% of their portfolio into Bitcoin itself.
He explained that other asset classes, such as debt, equities, commodities, and so on, are tightly intertwined with the legislative framework of the country in question. Alongside this, it’s deeply connected to the financial market as a whole, making them subject to the whims of the financial world at large.