The organizer of space flights advised investors to keep 1% of their assets in bitcoins

Bitcoin’s lack of correlation with fundamental economic factors allows it to be used to hedge risks. This was stated by the chairman of the board of directors of the company for the organization of tourist space flights Virgin Galactic Chamat Palihapitiya in an interview with CNBC.

In his opinion, it is Bitcoin that should occupy 1% of each investment portfolio.

“When you see the volume of leverage used in the financial industry and think about all these biases and external factors that cannot be predicted, there is a significant risk of reduction. It will be great if an average resident of the planet or a single country has an uncorrelated hedge, ” - said Chamat Palihapitiya.

However, he called the “idiotic strategy” the purchase of cryptocurrency during a period of panic in the market:

“I do not think that when you see news about the coronavirus and the fall of the Dow Jones index by 2 points, you should buy bitcoin. This is an idiotic strategy. A reasonable strategy is to invest, say, 000% of the total assets in something that does not at all correlate with the world and the principles of its functioning. You accumulate a position for some time, and then do not remember it in the hope that this insurance will never come in handy. But otherwise, it will protect you. ”

Virgin Galactic has been working with Bitcoin since November 2013.

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