Second Billionaire in a Week on CNBC Expressing Bitcoin Interest

Bitcoin is Schmuck insurance

Just a few days after Wall Street legend and billionaire Hedge Fund Manager Paul Tudor Jones told CNBC viewers that he was going long on Bitcoin, another billionaire explained on the same channel why he is hedging with Bitcoin.

Just days later, billionaire Venture Capitalist Chamath Palihapitiya was on the same show and expressed his interest in Bitcoin, praising its lack of correlation with traditional assets.

Palihapitiya, a self-made billionaire who was born into poverty in Sri Lanka, has a history of successful early investments and his Social Capital VC invests heavily in social projects.

Speaking on CNBC, he was quick to point the finger at the Fed’s monetary policy of inflating the markets before helping the taxpayers. A move that has completely disconnected the markets with the real economy.

 “We have completely divorced the economy from the stock and the bond markets,” says Palihapitiya. “The Fed has been the principal agent of that obfuscation.”

And when asked where investors should put their capital, Palihapitaya quickly endorsed Bitcoin. And the Venture Capitalist and Golden State Warriors stakeholder cited Tudor Jones’ decision to open up about his leanings towards Bitcoin:

“Now all of a sudden even he is looking at bitcoin and the reason is we are in this massive deflationary cycle. I still struggle to find anything that is as uncorrelated to anything and to everything else than bitcoin.”

Bitcoin is Schmuck Insurance

It’s no secret that the billionaire investor sees the potential in Bitcoin. Back in 2013 when hardly anyone had heard of Bitcoin, Palihapitiya went on a Bloomberg show and famously called Bitcoin “schmuck insurance’.

He was referring to the insurance against the schmucks of the banking cartels, and other scandal-ridden masters of the financial services universe, that blight society over and over.

Schmuck insurance indeed. Bitcoin was born out of a banking crisis, and although it appears the banks are not to blame for this crisis, they really are.

Bitcoin is schmuck insurance

The whole economy is built on debt, and 97% of new money is created by the banks. Not central banks: banks. Anyone wanting a loan, or a mortgage, banks just create it out of thin air, and its this that has got us into this whole economic mess.

And its this why billionaires, who’ve obviously done well out of the great fiat ponzi scheme, are now hedging their bets with Bitcoin.

Of course the central banks are as guilty, and the Fed especially has pumped the markets to ridiculous highs, and with the US government clearly stating QE infinity, it’s only a matter of time before more high-end investors enter into the space.

What’s So Special About Bitcoin?

Bitcoin evolved out of a financial crisis. If the system wasn’t so orrupt towards bankers, there might not be any need for Bitcoin, but the truth is, all these crises, it’s the people who get hurt financially.

Bitcoin offers a way out. It’s a hard money. A deflationary money. It’s the most secure network ever created, and it allows anybody anywhere to get involved in a truly global economy.


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It allows for secure, fast and cheap transactions. There can never be more than 21 million Bitcoin ever in existence. Satoshi Nakamoto inscribed that into the program, and the decentralized consensus ensures it and the quantitative hardening that is the halving ascertains the hardest and soundest money ever created.

Conclusion

Bitcoin and gold are the only assets that hedge against the banking cartels’ monetary manipulation. No doubt Palihapitaya and Tudor Jones have hedged a bit of gold, but the fact that two prominent billionaires have come out on TV and openly spoken about their desire for Bitcoin, speaks volumes.

Bitcoin might be schmuck insurance, but it’s much more than that. And it’s without question that more billionaires will follow suit and insure themselves against the biggest schmucks of all.

Author: Tommy Limpitlaw