Morgan Creek Capital CEO Mark Yusko dismisses daily price tracking of Bitcoin, calling the currency a “chaos hedge, or schmuck insurance.”
Morgan Creek Capital CEO Mark Yusko called Bitcoin (BTC) a “chaos hedge, or schmuck insurance,” in an interview with CNBC Fast Money on Aug. 14. Yusko made the comment while explaining the folly in paying too much heed to the daily price movements of BTC.
Should we park the narrative of Bitcoin price’s correlation with global turmoil?
The interviewer noted that people had been making a big thing of BTC’s recent bull run and apparent correlation with global turmoil. As the turmoil appeared to have gotten worse, and Bitcoin had also gone lower, “should we now throw that narrative out of the window, or at least table it?” she asked.
“People who are watching the daily price of bitcoin are really missing the whole point”
Yusko replied that the daily price of Bitcoin wasn’t the point. “The whole idea of Bitcoin is it’s a store of value,” he said: “It’s a chaos hedge, or schmuck insurance, as I like to call it.” He suggested that people should look at long-term trends, emphasizing that it’s better to own a piece of the network.
Suggesting its role as a counterweight to traditional financial markets, Yusko advised: “You want to have 1, 2, 3, 5% of your net worth in this asset as a hedge, against all the problems that we see in the fiat markets and the equity markets.”
This backs up Yusko’s own remarks back in May, that Bitcoin should be in every investor’s portfolio. However, his suggestion of a 5% investment in bitcoin is massively conservative compared to Morgan Creek Digital founder Anthony Pompliano, who recently revealed that more than 50% of his net worth is in Bitcoin.
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Author: Jack Martin