Hamat Ballihabitia, billionaire social capital and president of Virgin Galactic, called Bitcoin a form of disaster insurance from governments that make wrong financial decisions.
In a June 23 interview with Unchained Podcast, Palihapitiya said that hard-working people need something like Bitcoin as insurance, as the cryptocurrency is “really unrelated” to the consequences of bad lawmakers’ behavior.
However, the CEO indicated that for Bitcoin to go up at that moment, everything in the financial system has to go very wrong, which will have dire consequences for your friends and family.
“If your Bitcoin game is paying off, it will be disastrous for the world,” said Palihapitiya. This will have dire consequences for the many people we all know and care about those who are not secured in bitcoins. So you almost don't want this to happen.
Sufficient insurance to “make you full”
Palihapitia invested even in 2010, after buying a million bitcoins for $ 80, worth billions when the symbol hit an all-time high in December 2017.
Surprisingly, a billionaire claims that Bitcoin (BTC), unlike “second and third rate” cryptocurrencies like Ethereum (ETH), is one of the few ways to get “huge asymmetric returns” from such small investments.
“You want to make sure that a small insurance policy can make you full,” Balliaphetia said, citing a good example of a return of $ 1,000 to investing one dollar. “So I think you should take 1% of your wallet and put it in bitcoins.”
“Finally, all other types of assets – stocks, debt, real estate, and commodities – are closely related to the regulatory framework and interconnectedness in financial markets, bringing together many governments that act in this way.”
The billionaire also hinted that the value of Bitcoin in the future could reach millions of dollars or decrease to zero.