Virgin Galactic chairman recommends investing 1% in BTC

After recently attending dinner with TRON CEO, Justin Sun, legendary investor Warren Buffett once again bashed Bitcoin, claiming that the cryptocurrency has no value. However, while this is not the first time that Buffett has criticized BTC, this time, the leading coin got a new advocate — Virgin Galactic chairman, and founder of an investment firm Social Capital, Chamath Palihapitiya.

Palihapitiya recently opposed Buffett’s negative stance towards Bitcoin, and he noted that people should dedicate a portion of their investment portfolio to the world’s first and largest coin.

As some may know, Palihapitiya is skilled when it comes to recognizing good investments early on. He was among the early investors into Facebook, after all. He also recently spoke about the effect that coronavirus might have on traditional markets, which is when he addressed Bitcoin’s role.

Invest 1% in BTC, as Warren Buffett is wrong, says Palihapitiya

Palihapitiya stated that everyone should invest at least 1% of their asset into BTC, specifically. He believes that Bitcoin is entirely uncorrelated with any other asset out there and that it’s a fantastic hedge. However, he also noted that buying large quantities of BTC when the financial markets are crashing is an ‘idiotic strategy.’

A better approach is to do it gradually and quietly, over time. Simply invest a bit, and then forget about it for the time being. Then invest some more, add it to the pile, and repeat. Palihapitiya was bullish on Bitcoin for a long time, and back in 2017, he predicted that the coin would hit $1m during the next 20 years.

As for his comments on Buffett’s criticism of Bitcoin, and the crypto sector, in general, he said that the prominent investor is “completely wrong and outdated,” at least when it comes to BTC.

Meanwhile, Buffett was also criticized by Tim Draper, a well-known venture capitalist, who recently refuted Buffett’s claims. However, Draper also noted that Buffett has 50% of its holdings in insurance firms and banks, which will not perform well in the decentralized economy. In other words, Buffett has no choice but to try and delay crypto adoption as much as possible in order to keep his fortune.