Eric Weinstein, CEO of Thiel Capital and popular podcast host The Portal, urged his followers this weekend not to be indulged in the daily fluctuations in the price of Bitcoin (BTC). He seemed to think it was wise to focus on the ability of cryptocurrencies to hedge against currency discussions from central banks.
Bitcoin and other assets such as “hard money” like gold and silver could be good alternatives to “persuasive actions” by central banks, Weinstein also tweeted to nearly 485,000 of his supporters. “Knowing how we will protect ourselves from central banks that print and devalue securities is still our next meeting with the market,” he said, adding:
“This is not investment advice. But there is a perception that central bankers, by their persuasive actions, are a threat to anyone with cash and cash equivalents. Look at BTC, XAU, CHF, XAG and so on.”
“I don’t have a timeframe to inform you of the central bank’s actions. I only see a group of people facing problems and resorting to the same tool. Over and over again. There will always be problems like this before we deal with an underlying crisis and address it. In growth and innovation.”
Bitcoin was trading at $ 48,662.20 when Weinstein tweeted. It would eventually drop to $ 47,000 and then bounce sharply to $ 54,200 on Monday.
Bitcoin’s role as a deflationary hedging tool is contested in mainstream investment circles, although this appears to be an admission that the digital asset is interfering with the market share of gold. Bitcoin is not only valued in dollars, but in bullions as well. As Cointelegraph reported last month, Bitcoin’s price against gold increased nearly sevenfold from October 2020 to March 2021.
Weinstein previously described himself as “not Bitcoin”, adding that he “has contributed nothing to the vision of distributed computing.” However, he asked Bitcoins to stop measuring their fortunes in dollars and focus instead on a higher target. His views on the deteriorating nature of the behavior support this view.