Bitcoin is “insurance policy”, neither Biden nor Trump will help U.S. dollar

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In the run up to 2020 U.S. presidential election, investors are scrambling to understand how a win for either Donald Trump or Joe Biden will move the dollar and cryptocurrency markets, specifically Bitcoin. Former Facebook FB +0.3% executive-turned venture capitalist, Chamath Palihapitiya, has explained neither Biden nor Trump will help U.S. dollar—but holding bitcoin is an “insurance policy” helps him to “sleep soundly at night.”
The U.S. dollar has been under pressure this year, taking a big hit as the kovid-19 pandemic wreaked havoc on U.S economy.
“The reality is that [the Federal Reserve and the U.S. Treasury] have printed so much money that the likelihood is that we’re going to continue to see asset price inflation independent of who’s in the White House,” Palihapitiya, who bought his first bitcoin seven years ago, told CNBC’s Squawk Box this week, adding he holds bitcoin just “in case the central banks and governments of the world step on a landmine.” The Fed and the Treasury have embarked on massive stimulus programs this year, printing trillions of dollars, in order to offset the economic damage caused by the coronavirus pandemic.
Palihapitiya, who started his VC career while still at Facebook in 2011 and has backed the likes of big data analytics company Palantir and Richard Branson’s space exploration company Virgin Galactic SPCE -3.1%, has long argued bitcoin serves as a long-term store of value and should be in every investors’ portfolio.
“I still think that what I talked about sort of eight or nine years ago still holds, which is as a one-percent hedge in our portfolio,” Palihapitiya said.
However, Palihapitiya warned against investing in bitcoin for short-term profit, advising investors to hold it and “hope that you never need it because the amount of actual chaos that will drive bitcoin appreciation is not something we actually really want to see.”
“The reality is [bitcoin’s] fundamentally not [correlated with stock markets] because it is underpinned by a set of beliefs that are completely orthogonal to the orthodoxy that runs the world today, and it is completely the inverse of how the financial infrastructure of the world operates,” Palihapitiya added.

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