Bitcoin Is the Schmuck Insurance You Should Keep Under Your Mattress (Chamath Palihapitiya)
You would find it beneficial if you had a hedge against the destruction of value caused by the government
Photo By Christopher Michel on Wiki Commons
Chamath grew up in a dysfunctional household.
It had a profound impact on his character.
He has publicly discussed the emotional and physical mistreatment he suffered as a child inflicted by his father.
His mother was a stabilising force in his life and helped him navigate the challenges of childhood.
As a kid, there was a tree outside the apartment where Chamath lived growing up, and his father would make him go outside and collect a branch he would hit him with.
Chamath’s father would send him back to find another tree branch if the one he collected was too small.
It led to his hypervigilance. And always on edge, estimating his father’s anger and calculating the strength of the branches he would be hit with.
In a microcosm of his troubled upbringing, any moment not filled with fear and violence was an experience that left a lasting impression in his memory. Like when a teacher took him and two other kids to Dairy Queen in grade five or six, and he tasted his first hamburger, fries, and coconut blizzard.
Chamath’s experience growing up in a state of high alert and moments of kindness from others deeply impacted his sense of value and worth.
The constant psychological abuse made him feel worthless, and as he grew older, he sought external validation through academic achievements and professional success.
Today he has an estimated net worth of $1.2 Billion.
You may recognise Chamath Palihapitiya as an early employee at Facebook who played a critical role in helping the company grow.
He created Facebook’s viral growth strategy, which helped to increase the social media giant’s user base from 50 million to over 700 million during his tenure.
Chamath later challenged Mark Zuckerberg’s leadership and questioned the company’s moral compass. He believed Facebook was more interested in making money than connecting people and improving the world.
The early-stage Bitcoin investor, venture capitalist and founder says he still struggles with perfectionism, which he attributes to his traumatic childhood, but he has learned to embrace it.
And his view is people should look to embrace Bitcoin because it’s your only hedge against the failing banking system and an untrustworthy government.
You Need To Have Some Part of Your Assets That Governments Can’t Manipulate, Just in Case.
With its hundred million users, Bitcoin is still a minuscule player in a vast sea compared to the staggering population of 8 billion people.
Chamath believes that if you’re the investing type, you should invest at least 1% of your assets in Bitcoin as insurance against governments and other forms of value destruction.
He says if you live in a country where leaders make decisions that could negatively affect you and your family, you need this type of insurance. Bitcoin is a way to protect your assets because governments or institutions can’t control it.
He’s expressed confidence in the long-term prospects of Bitcoin, predicting that its price will eventually rise to $200,000
Chamath Palihapitiya — Source
“In 2012 and 2013, when Bitcoin was at $200, and everybody was laughing at me on CNBC every time I would talk about it, I said it’s probably going to a $100k, then $150k, then $200k.
In what period, I don’t know, five years, ten years. But it’s going there.
And the reason is that every time you see all of this stuff happening, it just reminds you that, wow, our leaders are not as trustworthy and reliable as they used to be.
So just in case we really need some kind of insurance, we can keep under our pillow that gives us some access to an uncorrelated hedge.”
You Need Schmuck Insurance.
Chamath is confident that with all the uncertainties and unpredictability of the current banking system and governments manipulating the value of fiat currency, having some of your assets in Bitcoin is a good idea.
This way, you have a hedge against value destruction, and you can protect yourself from government decisions that may not be in your best interest.
Chamath Palihapitiya — Source
“If that exists somewhere in the world, you need schmuck insurance. You must have some assets in something the government can’t manipulate.
Bitcoin is the single best hedge against the global financial infrastructure.
Whether you support the fiscal and monetary policy or not doesn’t matter.
Bitcoin is the schmuck insurance you have under your mattress.
Just buy the coins. It’s a fantastic instrument.
Just in case.
Just in case all these geniuses don’t turn out to be geniuses.
Final Thoughts
Chamath has credited his upbringing for giving him a strong work ethic and resilience, which have helped him succeed in the tech industry.
Despite his childhood challenges, his unique view of the world is a testament to who he is.
Thoughtful
Successful
And Self Aware.
He’s let go of the anger and forgiven his parents, recognising they were also struggling with their issues and the enormous pressures of being immigrants.
As for his Bitcoin thesis, he says the equation is simple.
“Buy more coins.”
Just in case these geniuses turn out to be wrong.