Eric Weinstein, CEO of Thiel Capital and host of the popular podcast The portal, urged his followers over the weekend not to get caught up in the daily swings of Bitcoin (BTC). He seemed to feel it was more sensible to focus on the cryptocurrency’s ability to hedge against central bank currency depreciation.
Bitcoin and other ‘hard money’ assets such as gold and silver could be good alternatives to central banks’ ‘covert actions’, Weinstein tweeted to his nearly 485,000 followers. “Figuring out how to hedge against central bankers’ printing and devaluation of fiat currencies remains our upcoming deal with the market,” he says. said, to add:
“This is not investment advice. But it is a belief that central bankers through their disguised actions pose a threat to all those who hold cash and similar assets. Look at BTC, XAU, CHF, XAG, etc.”
He went on:
‘I don’t have a timetable to give you about central bank actions. I just see a group of people getting in trouble and reaching for the same tool. Over and over. And there will always be such problems until we face and address the underlying crisis in growth and innovation. “
We will have to fall short in the talent, ethics and skill of macroeconomists, central bankers, investment bankers and financiers.
Gold is not perfect. Neither does BTC.
But we have to beware of the printing press and calls for relief, facilitation and stimulation are clamoring for transfer and dilution.
– Eric Weinstein (@EricRWeinstein) April 25, 2021
When Weinstein tweeted the message, Bitcoin traded at $ 48,662.20. It would eventually bottom around $ 47,000 before rebounding sharply to a price of $ 54,200 on Monday.
Bitcoin’s role as a deflationary hedge is disputed within mainstream investment circles, although there seems to be a recognition that the digital asset is eroding gold’s market share. Bitcoin’s value has not only risen in dollars, but has also been priced in precious metal. As Cointelegraph reported last month, the price of BTC relative to gold has increased almost sevenfold between October 2020 and March 2021.
Weinstein earlier described himself as “not a Bitcoiner”, adding that he “contributed nothing to the vision of distributed computing”. However, he has urged Bitcoiners to stop measuring their wealth in dollars and instead focus on a higher purpose. His views on the crumbling nature of fiat add credibility to that view.