Virgin Galactic CEO Chamath Palihapitiya suggests that people don’t stare at the price movement
Chamath Palihapitiya, a billionaire owner of a venture capital fund and president of Virgin Galactic, said that although people should invest in Bitcoin, they shouldn’t fixate on its price movements because it will only lead to frustration – and Bitcoin is not about that.
During an interview with CNBC’s Squawk Box on Tuesday (06), the host asked Palihapitiya what he thinks about Bitcoin as an uncorrelated asset, given the growing interconnection between the cryptomoeda market and the stock market. And especially because the price of Bitcoin „for the most part, does not seem to rise“.
In response, Palihapitiya confirmed that he still sees Bitcoin as a protection against the financial system controlled by central banks and large financial institutions, and asked to refrain from judging it based on short-term dynamics.
„The more people become obsessed and focus, at least in my opinion, on what the price is, the more it will confuse you, the more it will frustrate you, the more it will seem correlated to other assets,“ said Palihapitiya, adding „The reality is that fundamentally it is not. Because it is sustained by a set of beliefs that are completely orthogonal to the orthodoxy that governs the world today. ”
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Palihapitiya noted that a Bitcoin hedge of 1% on a portfolio can be seen as an insurance policy that helps him sleep soundly at night – only „in case the world’s central banks and governments step on a land mine.
„I just think the more people become obsessed with the price and the more they want it to behave like a stock or title, the more frustrated they’ll get. They will find a way to connect points that don’t exist. It’s just not what it is“, said Palihapitiya.
He also warned that investors who see Bitcoin as a traditional title may regret their strategy with time.
„You buy, you secure, you guard and, honestly, I think you hope you never need. Because the amount of real chaos that will drive the valuation of Bitcoin is not something we really want to see. That said, if this happens, I think it will create an enormous redistribution of power and it will push power, it will push financial accessibility to the limits, to billions and billions of people“, observed the investor.
Talking about the possibility of Bitcoin becoming the world’s currency, Palihapitiya said that a 1% position „is not irrational“ and is something that „justifies a position where we can all have it.
He added: „Once again, invest and forget, don’t think about it“.