Mark Yusko: Bitcoin is a "chaos coverage, or idiot insurance"

Morgan Creek Capital executive director Mark Yusko called Bitcoin (BTC) "chaos coverage, or idiot insurance," in a CNBC Fast Money interview on August 14. Yusko made the comment while explaining the madness of paying too much attention to the daily movements of BTC prices.

The interviewer said people had been making a big fuss over the recent rebound of BTC and its apparent correlation with global turmoil. As the turmoil seemed to have worsened, and Bitcoin had also fallen lower, "should we now throw that narrative out the window, or at least postpone it?

Yusko replied that the daily price of Bitcoin was not the point. "The idea of ​​Bitcoin is that it is a reserve of value," he said: "It is a hedge of chaos, or idiot insurance, as I like to call it." He suggested that people should look at long-term trends, emphasizing that it is better to own a part of the network.

Suggesting his role as a counterweight to traditional financial markets, Yusko advised: "He wants to have 1, 2, 3, 5% of his net worth in this asset as a hedge, against all the problems we see in fiduciary markets and markets of values. "

This supports Yusko's own observations in May, that Bitcoin should be in the portfolio of all investors. 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.