Bitcoin Blasts Through $13K As Billionaire Calls BTC Best 'Schmuck Insurance' Against Traditional Finance – BTC, Ethereum, XRP, Litecoin Forecasts

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Billionaire venture capitalist and former senior executive at Facebook, Chamath Palihapitiya, calls Bitcoin the “single best hedge against the traditional financial infrastructure.”

In an interview on CNBC’s Squawk Box, the CEO of Social Capital says,

“We’ve had this conversation for five or six years. I’ll say the same thing I said six years ago when it was at $80 a coin, which is it is the single best hedge against the traditional financial infrastructure. Whether you support fiscal and monetary policy or not, it doesn’t matter. This is the ‘schmuck’ insurance you have under your mattress.”

“It’s the single best hedge against the traditional financial system” @chamath on appeal of bitcoin #btc pic.twitter.com/gIkB38B4X0

— Squawk Box (@SquawkCNBC) July 9, 2019

Appearing on CNBC’s Power Lunch, Tom Lee, head of research at Fundstrat, agrees with Palihapitiya.

Lee says there’s a good reason to allocate a small part of your portfolio into Bitcoin which has more than tripled since the start of 2019.

Says Lee,

“There’s a macro argument to own some Bitcoin. If you owned 2% this year, it would have added 400 basis points to your fund’s performance. That’s caviar for a hedge fund. Increasingly Bitcoin is a macro story. We saw it with China and some risk – people buying on LocalBitcoin Chinese Bitcoin.

It happened in Turkey and now I think people are responding to that idea that ‘You know what, if you have a little insurance it’s great. It’s tiny. I think the fact that Facebook and likely other FANG companies are going to create their own digital currencies is really validating that idea that digital money is here to stay. I think all-time highs are imminent.”

Right now, Bitcoin is up 3.93% at $13,093 according to COIN360. Ethereum is down 0.31% at $313.79, XRP is down 2.48% at $0.3950 and Litecoin is down 2.00% at $119.99.