According to American entrepreneur, venture capitalist, and political activist Peter Thiel, he still holds bitcoin (BTC) but is uncertain about the future value of the cryptocurrency. Peter Thiel Talks Bitcoin: A Holder With Cautious Optimism Peter Thiel, the renowned billionaire and co-founder of Paypal, Palantir Technologies, and Founders Fund, shared his thoughts on bitcoin (BTC) […]
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Marathon CEO Fred Thiel Warns About Fed Losing Its Weapons to Fight Inflation During Upcoming Period of Fiscal Dominance
Fred Thiel, CEO of Marathon Digital Holdings, a Nasdaq-listed Bitcoin mining company, has warned about the future of the U.S. economy and the consequences of the Federal Reserve’s current monetary policy. Thiel noted the possibility of an upcoming period of fiscal dominance, in which the Federal Reserve would have fewer weapons to fight inflation.
Marathon CEO Fred Thiel Alerts About Fiscal Dominance Period
Fred Thiel, CEO of Marathon Digital Holdings, a publicly listed Bitcoin mining company, discussed challenges the Federal Reserve might face in its battle to tame inflation. Thiel stated that the U.S. economy might be close to entering a period of fiscal dominance, which would affect the efficiency of the methods that the Fed has to battle inflation and take it to a self-imposed goal of 2% yearly.
According to Thiel, this fiscal dominance period, which occurs when the increasing debt and deficit levels become sufficiently high that monetary policy ceases to be an effective tool for controlling inflation, would result in the Fed having “few tools” to battle this phenomenon that still has not been contained.
Thiel bases his remarks on the levels of interest payments as part of government revenues and the levels of outstanding Treasuries by maturity dates, which “need to be refinanced in addition to issuance of additional debt to cover interest payments and deficit spending.”
More Signs
Thiel is not the only one who has recently alerted about the possible effects of the high spending and rampant money printing in the U.S. economy, that might lead to a difficult fiscal situation in the upcoming years.
Fitch, one of the three largest credit rating agencies in the country, cited the deteriorating fiscal situation and a “high and growing general government debt burden” as causes for downgrading the U.S. debt rating from “AAA” to “AA+” back in August.
Furthermore, the latest Consumer Price Index (CPI) report, which showed higher inflation figures than anticipated, might mean that the Federal Reserve has not finished increasing rates to try to bring inflation under control. However, economists like Nobel laureate Paul Krugman think otherwise, as he recently stated that the war on inflation was “pretty much won” and without the occurrence of an economic recession.
What do you think about Marathon CEO Peter Thiel’s thoughts? Tell us in the comments section below.
PayPal Co-founder Peter Thiel Admits He Underinvested In Bitcoin
Billionaire entrepreneur, venture capitalist, and PayPal co-founder Peter Thiel said he should have bought more Bitcoin. During an interview hosted by the Lincoln Network in Miami on Wednesday, he spoke about cryptocurrencies, central banks, and Artificial Intelligence.
Miami has become a hotspot for crypto investors. Several crypto startups recently announced new offices in the city. The PayPal co-founder’s venture capital firm, Founders Fund, was also an early promoter of Miami as a new tech hub.
Peter Thiel Praises Crypto
During the Miami event, Thiel praised cryptocurrencies and admitted that he may have underinvested in Bitcoin.
“You’re supposed to just buy Bitcoin,” he said, adding: “I feel like I’ve been underinvested in it.” Thiel further pointed out that his only hesitation about investing was that he thought “the secret was already known by everybody.” He concluded by saying “I think the answers are still to go long. Maybe it still is enough of a secret.”
He made these statements after Bitcoin blasted to an all-time high of over ,000 on Wednesday. Thiel deliberated whether it would rise further. “Bitcoin at ,000. Is it going to go up? Maybe,” He also added that the surge in crypto prices, “tells us that we are at a complete bankruptcy moment for the central banks.”
Related Reading | As Bitcoin Makes New ATH, Netflow Hints BTC Will Explode Here
In the interview, the tech investor also criticized Artificial Intelligence as a disputant to cryptocurrency. He likened crypto to his political philosophy of being libertarian because it’s a “force for decentralization,”
Therefore, “AI, especially the sort of low-tech, surveillance form, is essentially communist,” because it’s a force for centralization. Thiel further said that he does not want to outlaw AI. Instead, he would like the people building it to “think about how they’re working on a technology that’s going to destroy the world.”
Thiel’s Relationship With Bitcoin
The tech investor has been a Bitcoin believer for a while now. Even in 2018, when Bitcoin’s price was bottoming, Thiel maintained his stance. “I would be long on bitcoin,” he stated.
Related Reading | Billionaire Peter Thiel: Bitcoin’s Potential is Underestimated
Earlier this week, he also talked about Bitcoin at an event hosted by conservative law group Federalist Society. The PayPal co-founder suggested that Bitcoin’s current bull run points to weaknesses in the U.S. political system. “I don’t know that you should put all your money into Bitcoin at ,000 a Bitcoin right now,” he said.
“But surely the fact that it is at ,000 is an extremely hopeful sign,” he continued. Describing Bitcoin as “the canary in the coal mine,” Thiel said, “It’s the most honest market we have in the country, and it’s telling us that this decrepit … regime is just about to blow up.”
BTC trading at over K | Source: BTCUSD on TradingView.com
In April, while suggesting that Bitcoin may be ‘Chinese financial weapon against the U.S.’, Thiel described himself as a “pro-crypto, pro-Bitcoin maximalist,”
Thiel explained that “From China’s point of view, they want to get — they don’t like the U.S. having this reserve currency, because it gives us a lot of leverage over Iranian oil supply chains and all sorts of things like that,”
He expressed concern with the Chinese government’s goal to weaken the U.S. dollar. However, weeks later, China defied his predictions by launching a wide-ranging crackdown on Bitcoin and other cryptocurrencies.
Featured image by Real Daily, Chart from TradingView.com
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Peter Thiel and Bitmain Invest in Block.one to Support EOS Ecosystem
Developers of EOS, Block.one, have received a further round of investment from backers including Peter Thiel, Bitmain, Louis Bacon, and Alan Howard. This follows recent support by Mike Novogratz’s Galaxy Digital and new hiring appointments to the Block.one team.
Peter Thiel Makes Block.one Investment
Peter Thiel was the founder of Paypal and one of the first investors in Facebook. He has also invested in Airbnb, LinkedIn, and Yelp. He says his biggest mistake was not investing more in Facebook during a second round of investing and also claims seed investing is much harder now than it was 10 years ago.
According to a January report from the Wall Street Journal, Thiel has reportedly bought hundreds of millions of dollars of Bitcoin, according to people familiar with the matter. Founders Fund, Thiel’s venture capital fund, has purchased the large amount of Bitcoin and has also recently invested in crypto startup Tagomi Systems.
“As Block.one prepares to announce its future plans, we’re excited to welcome key strategic investors aligned with our values of creating a more secure and connected world,” said Block.one CEO Brendan Blumer in a press release.
Bitmain is one of the largest manufacturers of bitcoin mining hardware. They were recently valued at billion after their latest funding round. According to reports, Bitmain has plans to invest million in the IPO of Opera Browser. Following a 0 million investment, Bitmain seems to be preparing for an IPO in Hong Kong.
Bitmain CEO Jihan Wu said: “The EOSIO protocol is a great example of blockchain innovation. Its performance and scalability can meet the needs of demanding consumer applications and will pave the way for mainstream blockchain adoption.”
Block.one has previously received support from Galaxy Digital’s Mike Novogratz as they partnered with a joint venture focused on developing the EOS ecosystem. This provided 5 million of capital for investment in projects that use the network. At the time, Block.one made a commitment to provide billion through partnerships with venture capital investors to fund EOS projects.
Block.one Makes Strategic New Appointments
Block.one has also announced that former CFO of Commonwealth Bank of Australia, Rob Jesudason, has been appointed company Group President and former Jefferies Asia CEO, Mike Alexander, will lead Block.one’s EOS venture capital fund. Citibank Human Resources Managing Director James Mendes will also joining Block.one as Chief People Officer later this year.
“Block.one’s innovation is laying the groundwork for mass adoption of scalable blockchain technologies. Our position as a global leader in blockchain software allows us to attract and develop the world’s best talent. I am excited to come on board and support the growth and development of the Group’s global operations,” Mendes said.
The EOS venture capital fund has so far reached 0 million through partnerships in the U.S., Europe, and Asia. It will aim at providing investment, partnership, and mentorship activities aimed at “game-changing” blockchain projects on the EOS ecosystem.
Featured image from Shutterstock.
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