Everyone should have 1% of their assets in bitcoin, says Virgin Galactic chairman

Chamath Palihapitiya, chairman of spaceflight company Virgin Galactic and founder of venture firm Social Capital, has said that everyone should have 1% of their assets in bitcoin.

The world’s largest cryptocurrency is a “fantastic” hedge, Palihapitiya told CNBC in an interview on Wednesday. The billionaire investor added that bitcoin is “completely uncorrelated to the world and how the world works.”

Palihapitiya, who is also a former Facebook executive, has been a long time supporter of bitcoin. He thinks bitcoin is a sort of insurance that can protect in times of crisis.

“You quietly over some period of time accumulate a position and then just never look at it again and hope that that insurance under the mattress never has to come due. But, if it does, it will protect you,” Palihapitiya said.

Earlier this week, Berkshire Hathaway chairman Warren Buffett said cryptocurrencies have “no value.” Palihapitiya disagreed with that, saying Buffett is “completely wrong and outdated on this point of view.”

Although both billionaire investors share different opinions on bitcoin, Palihapitiya said Buffett is an "exceptional person. I’ve learned an enormous amount, both from afar and the few interactions I’ve had with him."