A common event, especially for novice traders and investors, is checking at the price of Bitcoin on a daily basis. Sometimes, they check it several times in a span of 24 hours, which is both mentally exhausting and time consuming.
Regarding that, Mark Yusko, who is the Chief Executive Officer at Morgan Creek Capital, shared his thoughts with news platform CNBC in the Fast Money space. The interview, aired this week, served Yusko to explain that it did not make a whole lot of sense to check the price every day.
A Store of Value, Not a Short-Term Asset
The aforementioned executive called Bitcoin (BTC) “chaos hedge, or schmuck insurance,” in the interview. As the journalist observed that people have been talking about the current bullish turn of the market and that there is an apparent correlation with international turmoil, she went on to say that turmoil is worse and BTC has also gone down.
Yusko’s replied that the point of Bitcoin was not about the daily price. “The whole idea of Bitcoin is it’s a store of value. It’s a chaos hedge, or schmuck insurance, as I like to call it,” suggesting that people need to look in the future and analyze long term trends and making it clear that it would be better to own a piece of the network.
According to Yusko, it would be a wise decision for any investor to embrace Bitcoin’s role as a counterweight agent to regular, more traditional financial markets. That is what he refers to when he calls BTC a store of value or, in his own words, chaos hedge.
A Hedge against Market Problems
Regarding that, he stated: “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.” He thinks that BTC must be seen as insurance when the markets go down or crash.
In the interview, Yusko explained that he believes the American bond market is similar to a bubble, and it is about to explode.
Yusko is famous around the industry for his stance. In May, he observed that Bitcoin needed to be included in every investor’s plan, in a time that has seen BTC’s prominence soar. However, some notable personalities in the business world have projected a conservative stance and have backed out of cryptocurrency investments.
A Famous Bitcoin Bull
He is famously bullish on Bitcoin. Earlier this summer, he highlighted that Bitcoin holds the potential to reach as high as $100,000 in 2021, with the possibility of going even further in the upcoming years.
It is noteworthy, however, that Yusko’s remarks about investing up to 5% of a person’s net worth seems somewhat conservative, at least in comparison with those ones from the Founder of Morgan Creek, Anthony Pompliano, who has revealed that over 50% of his net worth is stored in BTC.
At the moment of writing this piece, Bitcoin was by far the most prominent digital asset and was exchanging hands at $10,327.12, following a 1.74% price gain in the last 24 hours, with a trading volume of $184,635,875,644 in the last day.
By Andres Chavez