The US Printed More Money in June Than in Two Centuries
Dan Morehead, CEO of Pantera Capital, expressed his opinion on the US, printing a shocking amount of money to support the economy during the COVID-19 pandemic.
His letter to investors states that “The United States printed more money in June alone than in the first two centuries after its creation.” Morehead continued saying that “In June, the US budget deficit, which counted $864 billion, was larger than the total debt that was incurred from 1776 through the end of 1979, which is shocking.”
Bitcoin is the way out
Morehead made it extremely clear that Pantera Capital sees Bitcoin and cryptocurrencies as a whole as the solution for the current crisis. He also highlighted the contrast of the effects of money printing in recent months, to the effects it had over the centuries:
“With that first trillion USD printed, the US defeated British imperialists, bought Alaska and made the Louisiana Purchase, defeated fascism, built the Interstate Highway System, ended the Great Depression, and went to the Moon.”
Morehead showed his distrust towards how the US handles its finance, citing the resulting inflation as the main reason any person should “get out of fiat money and get into Bitcoin.”
BTC Going to zero
Not everyone is, however, as bullish when it comes to Bitcoin as Morehead is. Goldbug Peter Schiff is also extremely concerned about the effects of money printing the US has done. He predicts that “The US is about to experience one of the greatest inflationary periods in the history of the world.”
However, he isn’t fond of Bitcoin and says that an asset with no intrinsic value will eventually go to $0. He suggests that people move their funds into gold and other precious metals.
Despite widespread fears over USD inflation, many experts actually predict that consumer prices will go into a period of deflation.
However, many believe the inflation is, at the moment, actually hidden in asset prices rather than consumer prices.
Pantera Capital revealed a simple investment strategy it has when it comes to non-fiat assets:
“Stay long on crypto until schools and daycares open. Until then, the economy won’t function properly and money will be continuously printed.”