Buying Bitcoin Due to Coronavirus Is Idiotic, Chairman Of Spaceflight Company Says
The crypto market looks better today, with Bitcoin struggling to remain in the green.
Most important coins are trading in the green as well following a drop in price.
Chamath Palihapitiya, venture capitalist and chairman of spaceflight company Virgin Galactic, believes that everyone should allocate a small portion of their assets to Bitcoin.
In a new interview with CNBC, the billionaire said that everyone should have at least 1% of their investment portfolio in BTC because it’s not alt all correlated with other financial assets.
“Everybody should have one percent of their assets in Bitcoin, specifically. 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. Every financial instrument is correlated,” he said.
People should not invest in Bitcoin due to the coronavirus scare
According to the online publication the Daily Hodl, amid the coronavirus scare that is causing massive disaster for the US stock market and BTC, Palihapitiya explains that while Bitcoin is a good hedge against traditional assets, investing in BTC should not be a strategy driven by such an event.
“I don’t think when you wake up, and you see a coronavirus scare, and the Dow down 2,000 – you should not be going in and buying Bitcoin. That is an idiotic strategy,” he said.
He made sure to highlight the fact that a reasonable strategy should be investing in something uncorrelated to the world and how it works.
Despite the huge volatility, there have been a lot of optimistic predictions about the price of BTC these days, especially since the halving is around the corner.
CoinMarketCap is a website that provides cryptocurrency market cap rankings, charts, and more. It was purchased by Binance for $400M in 2020.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.