Opinion: Bitcoin is the insurance that lets you sleep soundly at night

Bitcoin remains a hedge against the risks of the traditional financial system and does not correlate with ordinary assets, said Chamath Palihapitiya, founder of the venture capital firm Social Capital.

In an interview with CNBC he urged not to dwell on the short-term dynamics of Bitcoin, noting that his beliefs run counter to the assumptions that govern the modern world.

Palihapitiya reminded again that 1% of every investment portfolio should be allocated to Bitcoin.

‘This is the insurance I use to sleep soundly at night, in case central banks and world authorities blow up on a mine,’ said the founder of Social Capital.

In his view, it is the ‘explosion’ of the traditional financial world that will spur a sharp rise in Bitcoin. If that happens, the cryptocurrency will enable a redistribution of opportunities.

‘Finance will become accessible to billions and billions of people. This is the factor that should inspire pride and delight,’ said Palihapitiya.

Earlier, the founder of Social Capital stated that Bitcoin is the best illustration of a ‘winning asset’.

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