Social Capital CEO Chamath Palihapitiya doubled-down on his belief that Bitcoin investors should separate themselves from short-term price actions. He asserted that BTC operates in opposite to other financial assets and helps him sleep “soundly” at night.
Palihapitiya: Bitcoin Is Fundamentally Different
The former Facebook executive has been a long-time Bitcoin proponent. Earlier this year, he said that his first BTC purchase came ten years ago when he bought one million bitcoins for about $80. Just recently, he classified Bitcoin as his best investment bet.
Being a vocal Bitcoin supporter, he received another BTC question while appearing on CNBC’s Squawk Box. This time, the focus was on price movements and why Bitcoin hasn’t performed differently than stocks and other traditional financial assets.
“I don’t think this [Bitcoin] is something that you trade. The more the people obsess and focus on what the price action is, the more it will confound you, the more it will frustrate you, and the more it will look correlated to other assets.
But the reality is – it’s fundamentally not [correlated]. Because it is underpinned by a set of beliefs that are completely orthogonal to the orthodoxy that runs the world today. It is completely the inverse of how the financial infrastructure of the world operates.”
Bitcoin Helps Me Sleep Better: Palihapitiya
Consequently, he doubled-down on his notion that investors should allocate at least 1% of their portfolio in Bitcoin. He argued that having such an amount for himself and his company is the “insurance policy that I use to sleep soundly at night just in case the central banks and governments of the world step on a landmine.”
He also believes that should Bitcoin explode in value, it would be because the traditional financial world has imploded. However, if it does occur, he noted that the world would witness a massive redistribution of power:
“I think it will create an enormous power redistribution. It will push power, it will push financial accessibility to the edges, to billions and billions of people. In that, there’s something to be really proud and excited about.”
Furthermore, a reality in which Bitcoin has a dominant role in the financial scene would be an “incredible technical feat.” It would provide transparency, accountability, and fairness.