Peter Thiel, the co-founder of Pay Pal, has his say on the momentary record high reached by the price of Bitcoin.
Summary
The Fed is not looking at the problem
In fact, he reported that this is nothing but evidence of a strong American inflation that is not at all transitory. Thiel criticized for this the unbalanced behavior of the U.S. Federal Reserve, precisely for doing almost nothing to highlight the existing problem of worsening inflation.
Jerome Powell, chairman of the FED, communicated a few days ago that the timeframe to examine and implement strategies related to counter inflation could be extended.
Bitcoin is currently down 9.6% from its all-time high of $67,276.
Peter, however, kicks it up a notch by claiming that the very rise in Bitcoin prices is nothing but a mirror of the American economy. The billionaire also added that he regretted not buying more BTC when its price was much more affordable.
Inflation and Bitcoin price rise
The economic crisis and rising inflation in the United States are now daily topics. The same strategy experts at investment bank JP Morgan argue that BTC is at its peak in relation to the U.S. economic counter-trend.
Many are those who advocate a non-participation of the Federal Reserve in programs to counter rising inflation. Thiel himself argues that there are not the right roles within the FED to address what could present itself as a serious problem shortly.
Peter Thiel has always declared himself a strong supporter of the Bitcoin dimension, calling himself a “pro-crypto” and a “pro-Bitcoin” person. Long before the Chinese government implemented its crackdowns on cryptocurrency players, the Pay Pal co-founder had spoken out. Bitcoin can therefore become a double-edged sword if used on other lines by Chinese strategy.
During his speech at the National Conservatism Conference, Thiel brought inflation right back to the rising bar of the cryptocurrency price. He made the clear argument that inflation should not be underestimated and that the communication being made about it is directed at minimizing it.
The biggest mistake the Fed can make, according to Thiel. Printing money and turning a blind eye to the problem will not help the United States of America.
