Peter Thiel Calls Bitcoin Surge Sign of a "Crisis Moment"
Peter Thiel says high Bitcoin prices indicate inflation troubles.
Key Takeaways
- According to Peter Thiel, the high price of Bitcoin is a possible sign the US economy may be witnessing inflation.
- Thiel made the comment during his keynote address at the second National Conservatism Conference (NatCon) in Florida.
- Previously, Thiel admitted that he felt underexposed to the asset class and that he wished he had bought more Bitcoin.
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At an event on Sunday, Peter Thiel, the co-founder of PayPal and Palantir Technologies, claimed that Bitcoin’s sharp rise was a sign of the ongoing rise in inflation.
Thiel Suggests Bitcoin Surge is Sign of Larger Problems
According to Peter Thiel, rising Bitcoin prices may be an indicator that economic inflation is real.
During his keynote address at the second National Conservatism Conference (NatCon) in Florida, Thiel stated that the high Bitcoin price was a possible sign that the US economy may be witnessing inflation fueled by the expansion of the dollar supply.
According to a Bloomberg report, the tech entrepreneur and billionaire added that the asset’s price increase was a sign of a “crisis moment.” Thiel criticized the Federal Reserve for not acknowledging inflation risks and for continuing to issue money.
“You know, $60,000 Bitcoin, I’m not sure that one should aggressively buy,” Thiel said, before adding, “surely what it is telling us is that we are having a crisis moment.”
Notably, Thiel has reiterated his views on Bitcoin following his remarks on Oct. 20 when he referred to Bitcoin’s price of $66,000 as a “complete bankruptcy moment” for central banks. Viewing it as a hedge against inflation, Thiel admitted that he felt underexposed to the asset class and that he wished he had bought more Bitcoin.
In 2020, the U.S. Federal Reserve expanded the nation’s money supply by trillions of dollars to cope with the Covid-19 pandemic, which many critics argue has been the primary contributing factor behind increased prices across the board. In fact, during Sep. 2021, price inflation in the US grew at its fastest pace in more than 30 years.
Bitcoin is often viewed as a hedge against inflation. With the rise of inflation, Bitcoin, which is trading at just under $62,000, is expected to see continued interest among institutions and individual investors going forward. The recent launch of an ETF product has made it easier for US investors to gain Bitcoin exposure.
Besides Bitcoin, Thiel has also invested in other crypto projects, including BitDAO, EOS, and Bullish.
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