Wednesday, May 27, 2020

Everyone Needs to Hold 1% of their Asset in Bitcoin, Virgin Galactic Chairman Says

Chamath Palihapitiya, chairman Virgin Galactic recently said everyone needs to hold 1% of their asset in Bitcoin as insurance. According to Palihapitiya, Bitcoin serves as a hedge in financial crises since the leading cryptocurrency is neither correlated to the world nor how the world works.

Virgin Galactic Chairman Says People Should Hold 1% of their Asset in Bitcoin

Chamath Palihapitiya while on CNBC’s Squawk Box advised people to hold 1% of their assets in Bitcoin to serve as insurance against the unknown. It serves as a hedge in times of financial crises since it’s uncorrelated to the world and how it works. Also, the asset is uncorrelated, unlike traditional financial systems that are correlated.

Palihapitiya also said:

“When you see the amount of leverage the financial industry is running, and you think about all these dislocations and all these exogenous things that are happening that you can’t predict, there’s a lot of risk to the downside, and it will be great that an average individual citizen, of any country in the world, has an uncorrelated hedge.”

Palihapitiya Refutes Claims About Coronavirus Triggering Bitcoin’s Bull Run

Palihapitiya refuted claims that the economic setback triggered by the coronavirus epidemic will bring about Bitcoin’s bull run. According to the chairman, when there is an epidemic of this nature and the Dow is down, it would be an “idiotic strategy” for an individual not to buy Bitcoin.

Over and above that, Virgin Galactic has been accepting Bitcoin since November 2013 to send people to space. The spaceflight company is among the first major companies to accept the cryptocurrency. According to Palihapitiya, the company received up to 7,957 “registrations of interest” since it began its flight in December 2018.

Tim Draper Advices Millennials to Invest in Bitcoin

Like Palihapitiya, Tim Draper, American venture capital investor advised millennials to invest in Bitcoin if they want to save enough for retirement. Draper also notes that Banks have left millennials in a lot of debt which is clearable if they embrace Bitcoin. Moreover, the savings strategy which worked for their grandparents will not work for them.

Bitcoin, on the other hand, surged to a year’s high of $10,500 on February 13, 2020. Nonetheless, the virtual asset currently trades at $8,600, as at press time. There are, however, expectations that the impending halving in May could potentially surge it to new heights never seen before.

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