Hamat Palihapitiya, billionaire and CEO of Virgin Galactic's space flight company, believes that each investor should have at least 1% bitcoin in their portfolio.
Speaking in the CNBC Squawk Box program, Palihapitiya stressed that bitcoin provides an excellent opportunity to hedge risks, as other financial instruments are correlated with each other.
"When you see the volume of funds in the financial industry and you think about all the external factors that are impossible to predict and that can lead to a fall in financial markets, it is really ideal for a citizen of any country to keep in his portfolio an asset that is not correlated with others," said CEO Virgin Galactic.
Palihapitia does not think that the coronavirus epidemic can be a catalyst for growth of cryptovoltaic markets, although bitcoin does often act as a protective asset, along with gold.
"I think that a sensible strategy would be to store, for example, 1% of my fortune in something that does not correlate with other global assets. You just gradually accumulate this position and do not even look in its direction. It will act as an insurance which, I hope, will never be needed," concluded Hamat Palihapitiya.
It was recently reported that bitcoin enthusiast Tim Draper sold some of his shares last year in order to invest in bitcoin.
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