Travis Kling, the chief funding officer of crypto funding agency Ikigai Asset Administration, has described Bitcoin (BTC) as insurance coverage in
Travis Kling, the chief funding officer of crypto funding agency Ikigai Asset Administration, has described Bitcoin (BTC) as insurance coverage in opposition to each hurricanes and U.S. fiscal coverage.
On March 20, Kling tweeted that an oncoming hurricane that may quickly hit the U.S. economic system and “do a whole lot of harm.” Nonetheless, all will not be misplaced, with Kling advising that the latest crypto market crash has made half-priced hurricane insurance coverage out there to all:
“You may nonetheless purchase hurricane insurance coverage. Individuals panic bought the insurance coverage coverage bc they needed money. Now it is half priced from a month in the past although the hurricane is clearly right here now.“
Hedge fund supervisor likens Bitcoin to “hurricane insurance coverage”
Earlier the identical day, Kling posted that BTC “is an insurance coverage coverage in opposition to the most important financial experiment in human historical past,” accompanying the tweet with a graph of latest annual U.S. price range deficits.
Kling’s tweet comes after the latest crypto market meltdown left Bitcoin’s lengthy presumed safe-haven standing in query — with Bitcoin plummeting 50% inside 30 hours alongside hefty losses within the conventional market following U.S. President Donald Trump’s journey ban announcement on March 11.
Is Bitcoin a secure haven asset?
Nonetheless, many throughout the cryptocurrency group seem to not have been naive relating to the affect of a recession or monetary shock on the cryptocurrency markets. On Jan 3. Andreas Antonopoulos said that crypto will seemingly crash arduous through the outset of a mainstream monetary meltdown, including:
“And the rationale it would crash arduous is as a result of a whole lot of the enterprise capital, company investments and personal funding from people that’s based mostly on low-cost cash and disposable earnings and extra money in portfolios and many others., like in every other a part of the economic system, will dry up.”
Antonopolous’ sentiments have been later echoed by Morgan Creek Digital co-founder Anthony Pompliano on a March 12 episode of his podcast — the place Pomp argued that the crash was attributable to a liquidity disaster during which “traders all rush to the exit doorways on the similar time” in a bid to appreciate fiat.
Pompliano predicted that Bitcoin, like gold through the 2008 monetary disaster, will rapidly recuperate from the preliminary liquidity disaster as governments minimize rates of interest and provoke quantitative easing — driving traders towards “secure haven belongings” and “sound” financial commodities.
Final month, the Virgin Galactic chairman Chamath Palihapitiya additionally likened BTC to insurance coverage.