{"id":10591,"date":"2020-04-16T04:23:43","date_gmt":"2020-04-16T04:23:43","guid":{"rendered":"http:\/\/emilynews.com\/blog\/?p=10591"},"modified":"2020-04-16T08:38:06","modified_gmt":"2020-04-16T08:38:06","slug":"news-commentary-1032-businessman-says-bitcoin-could-reach-1000000","status":"publish","type":"post","link":"https:\/\/emilynews.com\/blog\/?p=10591","title":{"rendered":"News Commentary 1,036 – Businessman Says Bitcoin Could Reach $1,000,000"},"content":{"rendered":"\n

Says\nEveryone Should Own Some!<\/strong><\/p>\n\n\n\n

A noted businessman shared his opinion on the potential value of Bitcoin in a recent article posted on bitcoin dot com<\/em>.\u00a0 Amazingly, he suggests that it could go as high as a million US dollars (*EN note: however at the moment we can see the BIG downtrend<\/strong> [at the time of writing<\/em> it] happens and the price can broke down at any moment<\/em>).\u00a0 He recommends that a person should make around 1% of his assets be in Bitcoin as a hedge against unpredictable fluctuations in the purchasing power of fiat currencies.\u00a0 Although he recommends having a cache of Bitcoin, he also noted that he doesn\u2019t think it could ever replace the US dollar because of its volatility.\u00a0 This is an interesting article and might be worthwhile taking the time to read.\u00a0 I\u2019ve repeated it below.\u00a0 <\/p>\n\n\n\n

Virgin Galactic’s Chamath Palihapitiya: Bitcoin Could Go to $1 Million, Everybody Should Own Some<\/strong><\/p>

Virgin Galactic Chairman Chamath Palihapitiya has shared his bitcoin investment strategy, predicting that bitcoin\u2019s price could reach a million dollars. He further suggested that everybody should have 1% of their assets in bitcoin since it is \u201ca fantastic hedge.\u201d<\/p>

Bitcoin\u2019s Price Could Reach $1 Million<\/em><\/p>

Chamath Palihapitiya, the chairman of Virgin Galactic and founder of investment firm Social Capital, recently discussed bitcoin and how to invest during the current financial crisis. In a podcast interview published last week with Morgan Creek Digital co-founder Anthony Pompliano, Palihapitiya was asked about his bitcoin investment strategy. Responding to questions about whether he had bought, sold or changed the bitcoin allocation in his portfolio in any way, the venture capitalist revealed:<\/p>

\u201cIn 2013, I bought a lot and at one point I think I had almost 5% of all the bitcoins. My basis is about 80 bucks a coin. I\u2019ve never bought more.\u201d<\/em><\/strong><\/p>

\u201cMost of my bitcoin now sits with a company and they use it for trading purposes. They use it to run a bunch of other strategies,\u201d he added. \u201cI did that mostly for safety and security and peace of mind. I didn\u2019t want to deal with it. I wanted to own equity in the business. That equity can be hedged. That equity can be tax structured advantageously, and then it allows them to run a big business which generates cash, and I can get a cash and dividend stream.\u201d He proceeded to confirm, \u201cso I have not bought since I initially basically wrote that article for Bloomberg in 2013.\u201d<\/p>

Chamath Palihapitiya, Chairman of Virgin Galactic and founder of investment firm Social Capital, believes that bitcoin could be worth $1 million a coin. He bought a bunch when they were about $80 a coin.<\/p>

Bitcoin is \u201cstill a speculative instrument and it\u2019s too speculative for it to be reliable,\u201d Palihapitiya opined. \u201cSo, if you are going to make the case that it should replace fiat currency, well one thing you have to look at is the volatility of the U.S. dollar and you can\u2019t replace it with something that\u2019s nine sigmas more volatile. It doesn\u2019t work.\u201d<\/p>

He then shared his prediction of how high he thinks the price of bitcoin could be over the next 10 years. \u201cIt is a 10-year trajectory,\u201d he began. \u201cI\u2019ve always thought of bitcoin as a very binary investment, whether it goes from 80 to 8,000 to 6,000 to 3,000 to 13,000, it doesn\u2019t matter.\u201d Noting that bitcoin\u2019s price will be \u201ceither zero or it\u2019s millions,\u201d Palihapitiya asserted:<\/p>

\u201cWhat it will do is it will create a quasi gold standard. It\u2019ll create an index, except instead of having to own gold where gold is owned by central banks, it is an instrument that has value that\u2019s determined in between its participants, and it\u2019s owned by everybody.\u201d<\/em><\/strong><\/p>

Palihapitiya has founded six companies and currently serves on the board of nine others, including Syapse Inc. and Remind101. He also previously worked at Facebook, Mayfield Fund, AOL, and Winmap.<\/p>

Chamath Palihapitiya believes that bitcoin is still a speculative instrument, but everyone should have at least 1% of their assets in bitcoin since it is \u201ca fantastic hedge.\u201d<\/p>

Everyone Should Have Bitcoin<\/em><\/p>

Palihapitiya also discussed bitcoin investing in an interview with CNBC last month. The Virgin Galactic chairman reiterated that his view on bitcoin remained unchanged since he authored the Bloomberg article on the subject in 2013, elaborating:<\/p>

\u201cEverybody should probably have 1% of their assets in bitcoin specifically. I still believe that today and I think it [bitcoin] is just a fantastic hedge.\u201d<\/em><\/strong><\/p>

When asked about his thoughts on what Berkshire Hathaway CEO Warren Buffett said about bitcoin, Palihapitiya emphasized that the billionaire \u201cis completely wrong and outdated on this point of view.\u201d Buffett insists that he does not own any bitcoin and never will. Repeatedly saying that it has zero value, he once called the cryptocurrency \u201crat poison squared.\u201d<\/p>

Chamath Palihapitiya said that regarding bitcoin, Berkshire Hathaway CEO Warren Buffett \u201cis completely wrong and outdated on this point of view.\u201d<\/p>

Palihapitiya clarified to CNBC that investing in bitcoin should not be event-driven. \u201cWhen you wake up and you see a coronavirus scare and the Dow down 2,000, you should not be going in and buying bitcoin \u2014 that is an idiotic strategy,\u201d he opined. \u201cI think a reasonable strategy is to say 1% of my net worth should be in something that is completely uncorrelated to the world and how the world works.\u201d The Virgin Galactic chairman suggested going into bitcoin \u201cquietly\u201d and letting the investment accumulate. He concluded, \u201cThen you just never look at it again and hope that that insurance under the mattress never has to come due,\u201d adding:<\/p>

\u201cBut if it does, it will protect you because that thing will be hundreds of thousands or a million dollars a coin.\u201d<\/em><\/strong><\/p><\/blockquote>\n\n\n