Chamath Palihapitiya compares Bitcoin to the collapse of the global financial market.

A-billionaire-who-purchased-a-million-BTC-in-2013

Chamath Palihapitiya compares Bitcoin to the collapse of the global financial market.

Chamath Palihapitiya is a 43-year-old billionaire venture capitalist founder and CEO of Social Capital. He claims that investors should apportion 1% of their portfolio to BTC and hope it never pays off.

“I just think that if people have been hard working, with their heads down, they should have an opportunity to make sure that they don’t get wiped out if the government itself just continues to make a string of bad decisions that then have rising consequences. And Bitcoin, to me, is the only thing that I’ve seen so far that is fundamentally uncorrelated to that decision-making process and to that decision-making body. Because 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 in the financial markets that brings together many of the governments that are sort of behaving this way.

And that’s why I think that you should just take 1% of your portfolio, put it in Bitcoin, never look at it… and hope that that 1% goes to zero.”

The success of Bitcoin will depend on a lot of bad factors

He claims that although BTС has a fairly good level of hedging against traditional assets, cryptocurrency investing will not be a special move. Relying on the fact that the investment will pay off due to a certain event (coronavirus) or moment in time.

The success of Bitcoin will depend on a lot of bad factors (which include both events like the coronavirus, and directional decisions made).

“If your Bitcoin bet pays off, it will be cataclysmically destructive for the world. And that’ll have enormous consequences to many people we all know and care about who weren’t hedged in Bitcoin. And so, you almost don’t want it to happen.”

The venture capitalist is convinced that the success of Bitcoin lies only through a complete economic collapse.

Despite these claims, his first investment in cryptocurrency was the purchase of 1 million BTC back in 2013, when the that was valued at about $ 80. Today, this amount is more than 9 billion dollars.

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