Inflation is being watched out from after Federal Reserve’s money printer have spiked up on numbers.
Dan Morehead, CEO of Pantera Capital, said that the United States had printed a massive amount of money to fight the pandemic-induced financial crisis that the world is facing.
He said: “The United States printed more money in June than in the first two centuries after its founding, Last month the U.S. budget deficit — $864 billion — was larger than the total debt incurred from 1776 through the end of 1979.”
The CEO also said that they see Bitcoin or another cryptocurrency as an alternate solution for the crisis. He also made it clear about the effects of printing money over the past months to the equivalent amount of currency from previous centuries. “With that first trillion [USD printed] we defeated British imperialists, bought Alaska and the Louisiana Purchase, defeated fascism, ended the Great Depression, built the Interstate Highway System, and went to the Moon.”
Inflation could be the main reason why one would get rid of paper money and go with Bitcoin and other cryptocurrencies. According to Morehead, there is no need for inflation-adjusted numbers with crypto because there is no inflation/hyperinflation.
Many of the experts, however, predict that the consumer prices will go into deflation period. This is the same thing that happened in Australia when their consumer prices dropped 1.9% in June 2020.