CNBC Host Joe Kernen Discloses He Owns Bitcoin In A Chat With Billionaire Chamath Palihapitiya


With the central bank's policy stance being “whatever it takes” to tackle the impact of coronavirus on the economy, people are opening up to bitcoin and allocating a small percentage to the digital currency.

Bitcoin proponent Chamath Palihapitiya recently joined CNBC to talk about the booming stock market amidst the suffering economy.

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

The Social Capital CEO criticized the US Federal Reserve for their over $2 trillion stimulus package which instead of helping consumers and taxpayers, inflated stock prices.

The monetary and fiscal measures taken by the Fed didn’t help the unemployed or solve the income disparity. Stan Druckenmiller agreed when he said,

“It was basically a combination of transfer payments to individuals, basically paying them more not to work than to work. And in addition to that, it was a bunch of payments to zombie companies to keep them alive.”

Protect yourself from a “massive deflationary spiral”

While Fed’s fast move to protect the US economy is praiseworthy, its decision to purchase corporate debt ETFs, junk bonds, and continuing to increase its balance sheet could quicken “a really bad deflationary supercycle.”

During this time, the best asset to invest in is Bitcoin because of its lack of correlation with other traditional assets.

According to The Virgin Galactic chairman, this lack of correlation could help investors gain insurance against a deflating economy.

Here, he cited macro investor Paul Tudor Jones, the founder, and CEO of a $22 billion hedge fund who recently revealed that he holds almost 2% of his assets in Bitcoin. Palihapitiya said,

“All of a sudden even he is looking at bitcoin and the reason is [that] we are in this massive deflationary spiral and you have to find a way to protect yourself.”

During this conversation, CNBC host Joe Kernen revealed that he also has some BTC. Kernan said,

“I have to disclose, compared to you (Palihapitiya), I own like 3 cents out of a dollar.”

Last month, Palihapitiya revealed that he first got into crypto in 2013 and at one point owned 5% of the entire Bitcoin circulating supply.

Even the skeptics believe Bitcoin has staying power

Increased interest in bitcoin is the result of crazy amounts of money printed by the central banks that have people looking for some type of assets with a fixed amount.

We are currently seeing a lot of different lines of thinking converging, Palihapitiya explained,

“when we started to believe in the long-term value of bitcoin, it was as a store of value and it was that schmuck insurance that you kept under the mattress.”

Earlier this week, the leading cryptocurrency also had its third bitcoin halving, pushing its inflation down, meaning the rate of new bitcoin entering the supply went down while demand continues to increase.

Yesterday, even banking giant JP Morgan, whose CEO Jamie Dimon is a known bitcoin skeptic called it a “fraud” in 2017, started accepting two bitcoin exchanges – Coinbase and Gemini as its clients.

And this is big because “JP used to think there was no long-term profit potential in crypto. That mindset has now changed. That's why it's big – they believe it has staying power.”

Bitcoin (BTC) Live Price

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