CEO Virgin Galactic:

Chamath Palihapitiya, the billionaire chairman of space company Virgin Galactic, has recommended that people keep Bitcoin (BTC) as a way to insure crisis.

Speaking on the program Squawk Box of CNBC, Palihapitiya said he believed that “people should keep 1% of assets in Bitcoin.”

Palihapitiya said that Bitcoin creates a “great barrier”, because every other financial instrument is correlated (…) except Bitcoin, which is basically uncorrelated.

“When you see the leverage of the financial industry in action, you think about all these deviations and all the exogenous things happening that you cannot predict, there will be a lot of risks. for a discount, and it would be great if a normal individual citizen, of any country in the world, has an unrelated barrier. ”

Palihapitiya excludes corona virus as a catalyst for price increases

However, the former billionaire executive Facebook disagrees with the theory that the economic catastrophes caused by the corona virus outbreak will push the cryptocurrency market into an uptrend.

“I don't think when you wake up and you're scared of the corona virus, and the Dow drops to 2,000 points, then you shouldn't buy Bitcoin – it's a stupid strategy,” he said.

The “Bitcoin is a safe haven” story has certainly been battered this week as BTC prices fell 13% in 36 hours along with the stock market due to concerns about the impact of the corona virus. By contrast, gold has performed well as a safe haven – recording a 0.5% increase in recent days to trade at $ 1,648.82 per ounce.

Put some Bitcoin under your pillow

Palihapitiya suggests that a better approach than trying to profit from short-term market trends is that investors should put a small percentage of net worth into Bitcoin as “insurance.”

“I think a rational strategy of 1% of net worth should be placed in something that is completely unrelated to the world and how the world works. You quietly accumulate over a period of time and never look at it again and hope that the insurance under the pillow never has to be due. But, if it does, it will protect you. ”

Palihapitiya is a long-time Bitcoin supporter, his Virgin Galactic company began accepting Bitcoin in November 2013 – becoming one of the most high-end companies to accept BTC at the time. Palihapitiya told CNBC that it has received more than 7,957 “interest registrations” since making its first flight in December 2018, equivalent to $ 2.39 billion in potential ticket sales.

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According to CoinTelegraph
Translated by ToiYeuBitcoin

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