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Virgin Galactic Chairman said Bitcoin Cannot Be Associated with Traditional Assets

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Virgin Galactic Chairman said Bitcoin Cannot Be Associated with Traditional Assets

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Chamath Palihapitiya, CEO of venture capital firm Social Capital, stated that if you are following the Bitcoin (BTC) price trend, it appears to be linked to traditional assets. However, this is not the case as it is the opposite of today’s financial infrastructure. Virgin Galactic Commercial Line, Former Facebook Executive.

“The more people obsessed with price movements, the more they want them to act like stocks or bonds, the more frustrated they will find ways to connect non-existent dots. This is exactly what investors said in an interview with CNBC and that is not it. “

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In this case, BTC may be linked to other assets, he said:

“However, this is not the case, as it is based on a set of beliefs that are completely orthogonal to today’s orthodoxy of the world and completely contradict the way the world’s financial infrastructure works.”

The correlation between Bitcoin and the S&P 500 index

Source: coinmetrics.io

The correlation between Bitcoin and Gold

Source: coinmetrics.io

Investors believe that Bitcoin is a hedging tool, not a trading tool. As he mentioned earlier, 1% of the bitcoin hedge in the portfolio is an insurance policy, and he takes advantage of “a good night’s sleep in case central banks and governments around the world step in to implement the mine. “

However, using the world’s leading cryptocurrency can be a situation we really don’t want to see. Virgin Galactic chairman said, “You buy it, hold it and put it away. To be honest, I hope you never need it. ” Because the real chaos will fuel bitcoin’s appreciation, this is not our truth you want to see. “But when it does it will create a“ huge redistribution of power ”that marginalizes financial access.

At the same time, Palihapitiya believed in April that Bitcoin may have created a new “quasi-gold standard” for the world that can be viewed as a form of “Gold 2.0” that will hit millions or zero.

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