Virgin Galactic Chairman Gives Stratospheric Bitcoin Prediction

Reading Time: 2 minutes

Virgin Galactic Chairman and investment firm founder Chamath Palihapitiya has called Bitcoin “a fantastic hedge” against traditional markets, and stated that the Bitcoin price could one day hit millions of dollars. Palihapitiya, who also owns basketball team the Golden State Warriors, was speaking on the Pomp Podcast, hosted by noted Bitcoin bull Anthony Pompliano, where he also revealed how his investment strategy has changed, or not, since 2013.

Palihapitiya Owned Almost 5% of all BTC in 2013

Palihapitiya stated that in 2013 he bought “a lot” of BTC, at one point owning almost 5% of all BTC in circulation, putting his ownership around the 500,000 mark. He added that his average buying price was around $80, representing an astounding 9,100% return on his investment.

It can be assumed that Palihapitiya has sold some since, but had he had hands strong enough to hold to this point, his Bitcoin portfolio would currently be valued at a staggering $3.67 billion.

No Change in Philosophy Since 2013

Palihapitiya penned a piece for Bloomberg in May 2013 entitled “Why I Invested in Bitcoin”, in which has stated that he pushed his friends and family to have 1% of their portfolio in Bitcoin, calling it ‘schmuck insurance’ against the banks that caused the 2008 financial crash and brought around the birth of Bitcoin.

In his interview with Pompliano, Palihapitiya reiterates his call for everyone to allocate 1% of their portfolio into Bitcoin. As his allocation level states, this is not because he is sure of Bitcoin’s success but because it could act as a kind of insurance against the actions of the world’s money men:

I 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 […] Then you just never look at it again and hope that that insurance under the mattress never has to come due.

While Palihapitiya believes that Bitcoin will be “either zero or…millions”, he disagrees with the views of older investors such as Warren Buffett who say that Bitcoin produces nothing and is therefore worthless, stating that his view of the new technology is “completely wrong and outdated.”