Everyone should have 1% of their assets in bitcoin: Virgin Galactic chairman

Chamath Palihapitiya, chairman of Virgin Galactic and founder of investment firm Social Capital, explained to CNBC’s “Squawk Box” crew why he says bitcoin is a “fantastic hedge.”

Billionaire investor Chamath Palihapitiya disagrees with Berkshire Hathaway chairman Warren Buffett on the value of bitcoin, as Buffett declared earlier this week that cryptocurrencies have “no value.”

“He is completely wrong and outdated on this point of view,” Palihapitiya said on CNBC’s “Squawk Box” on Wednesday.

Buffett thinks that cryptocurrencies “don’t produce anything” and have zero value, declaring that he never will own anything like bitcoin. He’s long been a critic of bitcoin and has described the digital currency as “rat poison squared,” a “mirage,” and “not a currency.”

Although Palihapitiya disagrees with Buffett on the potential for cyrptocurrencies, the Silicon Valley investor said he still greatly respects Buffett on the whole.

“I think he’s an exceptional person. I’ve learned an enormous amount, both from afar and the few interactions I’ve had with him,” Palihapitiya said.

Palihapitiya has long been a supporter of the digital coin, saying “everybody should have 1% of their assets in bitcoin specifically.”

“I don’t think when you wake up and see a coronavirus scare and the Dow down 2,000, you should not be going in and buying bitcoin. That is an idiotic strategy,” Palihapitiya said. “I think a reasonable strategy is to say 1% of my net worth should be in something completely uncorrelated to the world and how the world works. You quietly over some period of time accumulate a position and then just never look at it again and hope that that insurance under the mattress never has to come due. But, if it does, it will protect you.”

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  1. All Cryptocurrency is a huge buy, with Coronavirus a digital currency has more value then gold and physical money now bc it can not be physically infected by a human virus since it is a digital transaction, however paper and gold can be possibly infected if someone who has the virus physically touches it and possibly can be contagious.Just an opinion could be wrong.

  2. I would prefer if he said how many bitcoin would be worth owning instead of what percentage of wealth into bitcoin. I think a nice spot is 2+ bitcoin

  3. bitcoin is a hedge………bitcoin is not a hedge…………bitcoin is uncorrelated………bitcoin is going down now……….bitcoin is going up………..calm down everyone and just wait. Just look at the chart since the 2009………..let's see where it goes in next 7 to 10 years

  4. The day quantum computing gonna be more available the bubble gonna explode mark my words till then Bitcoin gonna skyrock in 15 years gonna happen

  5. BTC is very centralized as evidence by these facts a) Satoshi Nakamoto owns 1 million BTC b)The mining is very centralization with only algorithm and a difficulty adjustments only after 1800 blocks. . This causes a centralization of the mined BTC to be in the hands of large mining pools. Ultimately, this can create a lot of wealth inequality as BTC wont even distributed amongst the people. c) BTC cant scale on chain with cheap tranasction fees and requires the use of the Lightning Network. All of these facts point to the excessive centralization of BTC and defeats the purpose of decentralization.

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