PayPal Co-Founder Says Bitcoin Price Points To Crisis In The Economy
November 02 2021 - 1:00PM
NEWSBTC
PayPal co-founder Peter Thiel has said that the bitcoin price
points to an ongoing crisis in the economy. Thiel expressed that
the price of bitcoin hitting $60,000 is an indicator of this
crisis. Mainly, Thiel says, this has been due to the staggering
inflation rates that the country has been experiencing following
the pandemic. The Fed had been accused of printing money recklessly
during this time without measures in place to affect the inflation
it triggered and as such, has pushed investors to more
unconventional investment options to hedge for this inflation.
Related Reading | Goldman Sachs Analysts Shoot For Ethereum At
$8,000 With Expected 80% Rally This lines up with general sentiment
towards the financial markets. Goldman Sachs analysts also pointed
to growing inflation as a reason behind the growth of
cryptocurrencies, revealing that they expected the price of
Ethereum to surge a further 80% if the inflation line continues on
its current course. Calling Out The Fed Thiel was present at the
second National Conservatism Conference where he expressed
displeasure at the way the Fed has been approaching rising
inflation in the country. He pointed out that the Federal Reserve
is not paying attention to the seriousness of inflation rates in
the country and as such, has not taken any steps to address this
issue. BTC price settles above $63K | source: BTCUSD on
TradingView.com The billionaire further criticized the actions of
the Fed by saying it was in a state of “epistemic closure,” A term
that refers to close-mindedness. Thiel expressed strong displeasure
at the rate at which the Fed continues to print dollars, a problem
which has been pointed out by many in the financial sectors.
Unscrupulous printing of dollars will inadvertently lead to further
inflation and damage the economy but all warnings seem to have
fallen on deaf ears. Thiel shared that growing inflation has
factored into bitcoin’s success thus far and could see the digital
asset continue its rally. However, the billionaire asked investors
to exercise caution when investing in the asset. “$60,000 Bitcoin,
I’m not sure that one should aggressively buy,” said Thiel. “But
surely, what it is telling us is that we are having a crisis
moment.” Bitcoin Versus The Economy The state of the economy has
been a growing concern in financial markets recently. COVID had
seen economies around the world weather some massive hits and the
U.S. was not spared in the onslaught. The inflation rate is
concerning for investors. However, the leaders do not see a cause
for alarm at this point. U.S. Treasury Secretary Janet Yellen
assured the populace that there was nothing to worry about at a
press conference in Ireland. But citizens are not buying it and
have looked for ways to hedge against inflation which they believe
will only continue to rise. Related Reading | El Salvador
Calls Another Bitcoin Dip With $25 Million Purchase This is where
bitcoin has entered the picture. Returns on bitcoin year-over-year
have surpassed that of traditional financial markets consistently,
making it an adequate hedge for inflation. With over 200% returns
each year, investors with money in BTC can safely avoid the impact
of inflation on their assets, which currently sits at 5.4% for the
past year. Featured image from Fortune, chart from TradingView.com
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