Peter Thiel – a tech billionaire and the co-founder of PayPal – said in a recent interview that bitcoin’s recent price surge is a massive sign of incoming inflation, which apparently is getting worse by the minute.
Peter Thiel: Bitcoin Is Now a Victim of Inflation
In a recent interview, Thiel said the economy was facing a major crisis, and that inflation was the highest it has been in roughly 13 years. He commented:
You know, $60,000 bitcoin, I’m not sure that one should aggressively buy, but surely what it is telling us is that we are having a crisis moment.
He blames the present circumstances on the stimulus measures that were offered to Americans and residents of the country during the coronavirus pandemic. He says that the Fed printed tons of money without thinking twice, and that he believes the Fed thought it could do this without causing value problems for the U.S. dollar. He says they were dead wrong, and now we are allegedly paying the price.
He added further to the gloom and doom by commenting that inflation is likely “here to stay,” and that we’re not going to see relief anytime soon.
For the most part, bitcoin – along with other forms of crypto – have become “safe haven” tools following the introduction of the pandemic. Many members of the public saw what was about to happen with the U.S. dollar and other forms of fiat and began turning to bitcoin as a means of keeping their wealth safe and sturdy during times of economic strife. While one can argue that bitcoin has steered off some of the long-term effects of inflation, it has become vulnerable to inflationary effects itself over the past few months.
Not long ago, the world’s number one digital currency by market cap rose to a whopping $66,000 per unit, the highest it’s ever been since first being mined 12 years ago. While the asset has dropped down a bit, things remain high for BTC and other forms of crypto such as Ethereum, which recently rose to a new all-time high earlier in the week.
Has BTC Made Things Better or Worse?
Thiel was recently featured in a separate interview in which he stated that he underestimated bitcoin and that he wishes he had bought more. He commented:
I feel like I’ve been underinvested in it. Maybe it still is enough of a secret. I think the answers are still to go long.
At the same time, he offered words that are contradictory to what he is saying now. In his most recent discussion, he says that bitcoin is a victim of inflation along with USD, whereas previously, he stated that bitcoin was more “honest” and served as a sign that the corruption that has grown synonymous with the modern financial system was about to collapse.