The Canadian-American billionaire Chamath Palihapitiya called bitcoin insurance against a potential economic catastrophe.
Speaking in an interview on the Unchained Podcast, Palihapitiya recommended investors allocate 1% of their portfolio to Bitcoin as a hedge against a greater financial collapse.
Palihapitiya, founder and chief executive officer of the venture capitalist firm Social Capital, warned against governments making bad monetary decisions that would ultimately impact the common person.
Bitcoin, to me, is the only thing that I’ve seen so far that is really fundamentally uncorrelated to that decision-making process and to that decision-making body.
Palihapitiya continued, calling Bitcoin a “bet against the ruling class in some ways” and recommended investors make sure they have a “small amount of insurance.”
The venture capitalist predicted bitcoin’s success would result in “massive, massive asymmetric payoffs” in the event of broader economic collapse. However, he warned the context of bitcoin’s success would be in catastrophe.
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.
Wall Street is discovering digital currencies too
He is not the only one, who is now advising on investing in digital currencies.
Ex-hedge fund manager Mike Novogratz says institutional investors see a cryptocurrency revolution coming.
The founder of the full-service crypto merchant bank Galaxy Digital Holdings says he thinks 8 out of 10 institutional investors will be invested in cryptocurrencies within the next five years.
Millenials love cryptocurrencies already
FOX Business’ Charles Payne recently said that Wall Street big-wigs, not just tech-savvy millennials, will end up loving crypto.
“Millenials love cryptocurrency, and I suspect one day Wall Street will too,” Payne said.
According to a Bankrate survey, millennials are three times more likely to buy BTC than Generation X. Back in December, Grayscale’s Michael Sonnenshein opined that Bitcoin could be the biggest winner during the generational wealth transfer that will take place during the next 25 years.