Peter Thiel - co-founder of PayPal and Palantir Technologies - believes that the high price of bitcoin indicates that inflation has started to damage the global economy. However, he assessed that investors should not rush to buy BTC when the rate was at USD 63,000.
Pandemic
The coronavirus pandemic and its disastrous economic problems have prompted many governments to initiate controversial financial policies designed to limit the damaging effects of all of this. In the US - the world's most powerful economy - the Federal Reserve began printing huge amounts of dollars. The move has been heavily criticized by many experts, including technology billionaire Peter Thiel. According to him, the Fed drives price increases with its actions.
Speaking of rising inflation, Thiel also touched on bitcoin. He estimated that its current price of over $ 60,000 a coin was a clear signal that the economy was facing increased inflation. Investors should not, however, "aggressively" buy assets at these levels.
- You know, $ 60,000 for bitcoin ... I'm not sure if you should buy aggressively. But it certainly tells us that we have a dangerous moment of crisis, he said.
High inflation
Last month, when bitcoin hit ATH, the billionaire held a relatively similar position on the matter. Thiel said he wouldn't be surprised if the major cryptocurrency continued its price rally into the future. Nevertheless, he added, the event revealed that central banks are not functioning well.
- Will it go up [BTC rate]? Maybe. But it certainly tells us that we are at the point of complete bankruptcy of central banks, Thiel said.
Let us add that the annual inflation rate in the United States for the last 12 months is 5.4%, which is much higher than 1.4% and 2.3%, respectively, in 2019 and 2020.
Despite the warning from many that the current price of bitcoin is already very high, a leading digital asset is actually seen by many as an alternative to gold in terms of value storage. Paul Tudor Jones III is a staunch supporter of this idea.
- I think that we are entering an increasingly digitized world. There is clearly a place for cryptocurrencies and they are clearly winning the race against gold right now, he said.
Another proponent of this concept is Barry Sternlicht. Not long ago, this 60-year-old billionaire described BTC as a financial tool that can help fight the mass printing of fiat currencies.
