While the entire market is panicking over recent US inflation data, BINANCE CEO Changpeng “CZ” Zhao thinks it is still somehow ‘’magically low.’’ The consumer price index increased 9.1% from a year ago in June, more than analysts predicted.
Bitcoin briefly dropped below 19,000 minutes after the US Bureau of Labor Statistics reported inflation data. Nasdaq, Dow Jones, and S&P 500 also fell amid high inflation numbers.
Twitterati corrects Binance CEO over inflation measurement
Commenting on the inflation data, Binance CEO Changpeng Zhao wrote that 80% of USD in circulation were printed in the last 2 years.
On that notion, a 9.1% inflation is “magically low,” CZ claimed, questioning how the Labor Department could show such a low figure. He added we should be seeing 500% inflation given 80% USD are new = 5x of original supply.
According to CZ, inflation is solely calculated on the basis of increase in money supply over a period of time. Twitter was quick to correct the CEO of the largest crypto exchange. Inflation measurement also takes into account velocity, different supply and demand factors as well as where the monetary supply remains over that period of time.
