Thomas Peterffy, in an interview with Forbes, shared his opinion on how rising inflation could affect bitcoin. Now the inflation rate in the US has risen to 9.1%, reaching a maximum in the last 40 years. Inflationary pressures will continue for several more years, as this is not a short-term problem, Peterffy said.
He named several reasons why inflation will not disappear: chronic budget deficits lasting for decades; persistent disruptions in supply chains; shortage of skilled workers and rising production costs. As interest rates rise, the Federal Reserve System (FRS) will also increase the amount of US national debt servicing, Peterffy is sure.
Earlier, the businessman recommended that investors keep 2-3% of their portfolio in digital assets in order to insure against a fall in the fiat currency rate. Now, amid a downturn in the crypto market and a liquidity crisis that has rocked the industry, Peterffy is feeling less confident.
According to him, there is a very high probability that bitcoin will become worthless or outlawed. The US government may ban cryptocurrencies for fear that they are being used to finance illegal activities, tax evasion, and the inability of the Treasury Department to control transactions with crypto assets. At the same time, Peterffy admitted that he himself owns some bitcoins, and he will buy even more if the BTC rate drops to $12,000. Bitcoin is currently trading at $20,000 per coin.
Recall that in 2017, Interactive Brokers allowed clients to open short positions on bitcoin futures, and last year entered into an agreement with Paxos so that clients could trade and store BTC, ETH, LTC and BCH on the platform.
Source: Bits
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