Bitcoin’s Insurance Against The Upcoming Economic Collapse: Details
Recently, Bitcoin has increasingly mentioned in interviews with major financial market players. In particular, the crypto asset received support from the dollar billionaire Chamath Palihapitiya, who believes that the purchase of Bitcoin could become a “lifeline” for investors. What are the arguments in favor of Bitcoin called Palihapitiya?
Bitcoin is a winning bet
Chamath Palihapitiya, CEO of Social Capital, shared his forecast on the situation in the financial market and the global economy as a whole. He said that the government chose the wrong path, relying on artificial stimulation of the economy. It may result in inflation shortly and may adversely affect the situation of both ordinary citizens and large investors.
In these conditions, Chamath Palihapitiya recommended that investors allocate 1% of their portfolio to Bitcoin. The dollar billionaire believes that this small investment can be excellent insurance against financial collapse.
“Bitcoin is independent of regulatory decisions. Thanks to this, investors can avoid external pressure on their capital. ”
Chamath Palihapitiya is also sure that if Bitcoin can prove itself as a reliable refuge in the context of the global economic crisis, this will become a solid foundation for price growth and popularization of cryptocurrency. The success of Bitcoin will be a powerful challenge to traditional market infrastructure. He noted:
“If Bitcoin remains a strong asset in the face of inflation, the time will come for a big change. The global financial market can transform beyond recognition. ”