Bitcoin is the first successful internet money based on peer-to-peer technology; whereby no central bank or authority is involved in the transaction and production of the Bitcoin currency. It was created by an anonymous individual/group under the name, Satoshi Nakamoto. The source code is available publicly as an open source project, anybody can look at it and be part of the developmental process.
For Thiel, the handling of the money issuing entities leaves much to be desired, which is why he believes that Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. is a revolutionary form of value, and that is just the warning signal signals are a call to action to either buy or sell an asset. for many economies to rectify before it is too late.
During the event Bitcoin 2022 which is currently being held in Miami, the co-founder of PayPal, Peter Thiel, assured that central banks are currently bankrupt and that Bitcoin is the most honest asset in the world.
Thiel’s controversial statements came to place during the conference in which he participated in the renowned event, where he stressed that the management carried out by financial institutions has left much to be desired, so that Bitcoin would be like that last wake-up call before a collapse associated with their mismanagement of money:
“Bitcoin is always the most honest market an area or arena, online or offline, in which commercial dealings are conducted. in the world, it’s the most efficient market, and it’s like the canary in the coal mine.
“We were told that I saw inflation. In the last two years it went from USD $5 to USD $6,000 by a factor of 10x. It’s telling us that central banks are bankrupt… that we’re at the end of the fiat fiat currency is “legal tender” backed by a central government, such as the Federal Reserve, and with its own banking system, such as fractional reserve banking. It can take the form of physical cash, or it can be represented electronically, such as with bank credit. money regime. And that’s sort of what’s been impacting the price. I think central bankers, Mr. Powell, people like that, should be extremely grateful to Bitcoin because it’s the last warning they’re going to get. They’ve chosen to ignore it… They’re going to have to pay the consequences on that over the next few years.”
Interesting inflation a general increase in prices and fall in the purchasing value of money. data
To back up his claims, Thiel shared with the audience some data on inflation in certain countries:
- In Lebanon, inflation currently exceeds 219 per cent.
- In Turkey this indicator is above 61%.
- With respect to the U.S., for February of this year, inflation was above 7.9%.
- In the case of Brazil, it recently increased by more than 10%.
- Cases like Venezuela and Argentina point to the most damaging effects in the region.
In relation to Europe, the issuance of euros is subject to the designs of theBanco Central Europeo. In that sense, Thiel rescued the comments presented at the time by Christine Lagarde, who said that “the Eurosystem can always generate additional liquidity how easily a cryptocurrency can be bought and sold without impacting the overall market price. as needed,” to which he commented:
“So, by definition, [The Central Bank] neither goes bankrupt nor will it run out of money. Besides that, any financial losses, should they occur, would not affect our ability to maintain price stability.”
Acute situation for the Reserva Federal de EE UU
In relation to the FED, Thiel criticized the way they have been dealing with the local economy in recent years, especially highlighting the overprinting of dollars to finance public spending, a situation they are now trying to turn around by tightening certain measures and raising interest rates, while subtracting capital capital is most commonly defined as the large sum of money you would use to invest. from reinvestment in bonds and stocks.
For Thiel, the increase in inflation rates is due to the existence of more capital, which is accentuated by the current geopolitical conflicts and the market war between the U.S. and China. Therefore, he projected that if this indicator gets out of control, in practice the FED would be bankrupt because its currency, the US dollar, would no longer act as a store of value and would no longer be subject to the definition of money.
The speaker did not rule out that the current situation, with an increase in commodities such as gas, oil and gold precisely because of the readjustment of its value, will make the U.S. must pay higher interest rates on its debt, especially by the end of this 2022 if the readjustment that the FED will make to the interest margin does not exceed 2%.
Thiel defines this situation as insolvency, as lending rates will rise faster than the economy, so the only real way out is to stimulate economic growth, which would require major reforms, which are not going to happen fast enough.
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- U.S. Treasury Secretary Janet Yellen says a digital digital technologies are these electronic tools that have the ability to generate, store or even process data. dollar could serve as reliable money
- Miami Bitcoin 2022: Ricardo Salinas has 60% of his capital in BTC; Michael Saylor and Cathie Wood in favor of regulations
Version by Angel Di Matteo / DiarioBitcoin
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