In a letter to investors released on July 29, Pantera Capital CEO Dan Morehead noted that the United States has printed a shocking amount of money to combat the pandemic-elicited financial crisis.

"The United States government written Thomas More money in June than in the first two centuries afterward its founding," Morehead wrote. "Last month the U.S. budget deficit — $864 billion — was bigger than the total debt incurred from 1776 through the end of 1979."

Morehead successful it clear that Pantera Capital sees Bitcoin as the solution for the current crisis. He also contrasted the effects of money printing in recent months, to how the equivalent quantity of currency had performed across centuries:

"With that first trillion [USD written] 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."

Morehead cited the ensuant inflation as the main understanding one should "take out of folding money and into Bitcoin." Accordant to the CEO, "in that location is no need for inflation-adjusted numbers [with Bitcoin] because in that location is no inflation/hyper-inflation."

Going to zero

Goldbug Peter Schiff is also concerned about the effects of money printing. Atomic number 2 noted comments by the Chairwoman of the Federal Allow, Jerome Powell, who aforementioned this week that the Fed was using its "full range of tools" to respond to the general: printing money, keeping interest rates close to zero, and making plus purchases steady at $120 billion per calendar month.

"The U.S. is about to see one of the greatest inflationary periods in world history," Schiff said on Twitter. "Any credibleness the Fed has left will be at sea. Federal Reserve Notes soon won't exist worth a Continental." (Continental paper money in the U.S. was at in one case exchanged for treasury bonds at 1% of its par value.)

Inflated prices as well?

Despite widespread fears over inflation, many experts predict consumer prices volition actually Adam into a period of deflation — and that's exactly what's happened in Australia this calendar week where ABC's News reported that consumer prices in the country really dropped 1.9% in June. It's a record for deflation since the Korean War.

However more pundits conceive the inflation is actually hidden in asset prices, rather than consumer prices, and that money printing has underpinned the dea market rally in the midst of the pandemic.

Pantera Capital unconcealed its simple investment strategy for awheel out the pandemic:

"Continue long-lasting crypto until schools/daycare undefendable. Until so the saving won't operate and money will be unendingly printed."