Mark Yusko, CEO of Morgan Creek Capital, appeared on CNBC’s Fast Money program Aug. 14 where he referred to bitcoin as a “chaos hedge,” before elaborating that it was “schmuck insurance.”
Schmuck Insurance
Yusko made his comments in the broader context of cautioning investors against dwelling over the daily price movements for BTC, which have continued to exhibit price volatility throughout 2019.
.@MarkYusko just called #bitcoin “schmuck” insurance. He explains. pic.twitter.com/eO5YrqH7Z1
— CNBC's Fast Money (@CNBCFastMoney) August 14, 2019
Yusko was asked his opinion on the correlation between bitcoin and growing economic turmoil. As posed by the host of the program, bitcoin’s price has continued to drop throughout the month of August, despite anticipation for a global economic downturn increasing.
The investment CEO explained that monitoring daily price movement for bitcoin was missing the point of the asset as a “store of value.” Instead, he called BTC a “chaos hedge, or schmuck insurance as I like to call it.”
He continued,
“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.”
Yusko emphasized that investors in bitcoin should look at long-term trends and view buying BTC as owning a piece of the broader network.
