Peter Thiel: Cryptocurrency Prices Show Inflation Concerns

Entrepreneur and venture capitalist Peter Thiel said the price of bitcoin and other major cryptocurrencies shows that inflation concerns are real. billionaire investor claims that inflation is in a time of crisis and has criticized the US Federal Reserve.

Billionaire venture capitalist Peter Thiel, co-founder of PayPal and Palantir Technologies, says crypto prices are showing concern about inflation. Thiel was speaking at a conservative conference on October 31, offering reflections on rising inflation and the response of the United States government.

He was not particularly interested in bitcoins and other cryptocurrencies at the current price, saying that “it is not safe that you should buy aggressively.” However, he believes that the price itself is an indication of a ‘time of crisis’ and that he regrets not having bought more bitcoins previously.

Much of Thiel’s comments had to do with criticism of the Federal Reserve for its management of the economy. He said that the central banking system did not recognize the importance of the situation and that its decision to print money would not have an impact on inflation.

US Federal Reserve has printed trillions of dollars in recent years, which has been much talked about. On top of that, the agency’s balance sheet has grown tremendously, with more assets purchased in 2020 than during the Great Recession. This has also raised concerns about inflation.

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re have been some concerns expressed in the past about the Federal Reserve’s decisions that have triggered negative interest rates. When this occurs, borrowers are credited with interest instead of paying interest on the amount borrowed. Federal Reserve Chairman Jerome Powell rejected the idea of ‚Äč‚Äčnegative interest rates last year.

Cryptocurrencies, a bulwark against inflation

Bitcoin itself has a lower inflation rate than any other fiat currency and is generally considered a good hedge. Many companies have started adding the business to their holdings for this very reason.

Among the best known is MicroStrategy, which carries the banner of the main companies that invest in cryptocurrencies. CEO Michael Saylor compared bitcoin to digital gold and said that it is a better option than the precious metal itself.

Meanwhile, Thiel’s company Palantir is considering a foray into bitcoin by adding the asset to its balance sheets. company has already started accepting bitcoins as payment from customers, which follows its other companies, PayPal and Venmo, in doing the same.

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