Peter Thiel, co-founder of PayPal and Palantir Technologies, believes that the rising price of bitcoin is a sign of inflation. He stated that it was not a good idea to rush to purchase bitcoins if the USD value of a single token exceeds $60,000.
The Fed is in an ‘Epistemic Closesure’
Many governments were forced to take controversial financial measures to mitigate the negative effects of the coronavirus pandemic. The Federal Reserve began printing large amounts of dollars in the USA, the largest economy. This was highly criticised by many experts, including Peter Thiel, the tech billionaire.
He said that the Fed is in an “epistemic close” or in other words, it is not aware of its guilt in inducing rising inflation through its actions.
Thiel also mentioned bitcoin while discussing rising inflation. Thiel stated that bitcoin’s current price of $60,000 per coin was a sign that inflation is increasing. Investors should not purchase the asset at such high prices.
“You know, $60,000 Bitcoin. I don’t think one should buy aggressively. It is clear that it is telling us that we are in a crisis.
The billionaire took a similar stance last month when bitcoin hit an ATH. Thiel stated that he wouldn’t be surprised if the primary cryptocurrency continued its rally in future. The event showed that central banks do not function well.
“Is it going up?” It could. It does however tell us that the central banks are in complete bankruptcy.
Peter Thiel Source: Time.com
The US’s annual inflation rate for the past 12 months was 5.4%. This is significantly higher than the respective 1.4% and 2.3% in 2019 and 2020.
Bitcoin vs. Inflation
Although bitcoin’s current price may be a barrier to investors, many people view it as an alternative to gold when it comes to being a store-of-value.
Paul Tudor Jones III is a strong proponent of this idea. The billionaire hedge fund manager actually considered bitcoin the best version of precious metal and allocated up to 5% to the cryptocurrency.
“I believe we are moving into a more digitalized world. There is clearly a place and race for crypto.
Barry Sternlicht is another advocate for this concept. Barry Sternlicht, a 60-year-old billionaire, described BTC as a financial tool that could be used to stop the mass printing fiat currencies. He has invested personally in BTC.
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