Twitter and Square CEO Jack Dorsey pointed to signs of approaching hyperinflation, which “will change everything around”. He predicted that it would soon manifest itself in the USA, then in the world.
Dorsey’s statement came as consumer price inflation in the United States approached a 30-year high; raising fears that the crisis could be worse than officials anticipated. Inflationary pressures “are likely to endure longer than originally predicted,” according to Federal Reserve (Fed) Chairman Jerome Powell, and might last “well into next year”. Powell warned that he and his colleagues will monitor the increased inflation expectations of corporations and households.
According to the consensus forecast, the Fed will completely curtail the asset repurchase program in the period from November to June 2022. According to the futures market, the probability of an increase in the key rate at the meeting on June 15 is estimated at 65.1%.
Gold as capital protection
In response to Dorsey’s tweet, Chief Economist & Global Strategist of Euro Pacific Capital; Peter Schiff called for paying attention to real assets like gold as capital protection. He rejected the idea of seeking salvation in Bitcoin (BTC).
Many individuals, however, disagreed with the Twitter CEO’s prediction that hyperinflation will occur in the US.
The main factor
Recall that previously in October, JPMorgan analysts called concerns about inflation the main factor in the current Bitcoin rally. The founder of Icahn Enterprises, billionaire Carl Icahn, also appreciated the protective properties of the first cryptocurrency against inflation.
However, JPMorgan suggests that the current uptrend is the result of Bitcoin’s revived role as a superior hedge against inflation in the eyes of investors. As gold has failed to react to concerns about rising cost pressures in recent weeks.
The team noted that the shift away from gold ETFs and toward Bitcoin funds has been gaining traction since September. And that this “facilitates an optimistic forecast for Bitcoin until the year-end.”