In a letter to investors released along July 29, Pantera Capital Chief operating officer Dan Morehead noted that the United States has printed a scandalous sum of money to combat the pandemic-induced financial crisis.

"The Incorporate States printed more money in June than in the first two centuries after its founding," Morehead wrote. "Next-to-last month the U.S. budget deficit — $864 billion — was larger than the total debt incurred from 1776 through the end of 1979."

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

"With that first trillion [USD written] we defeated British imperialists, bought AK and the Louisiana Purchase, defeated fascism, ended the Pregnant Slump, built the Interstate highway Main road System, and went to the Moon."

Morehead cited the consequent inflation as the chief reason out one should "get out of paper money and into Bitcoin." According to the CEO, "at that place is no need for inflation-attuned numbers [with Bitcoin] because in that respect is no ostentation/hyper-inflation."

Going to zero

Goldbug Peter Schiff is besides concerned or so the effects of money printing process. He noted comments away the Chair of the Federal Reservation, Jerome Powell, World Health Organization said this week that the Fed was using its "full range of tools" to react to the pandemic: printing money, keeping interest rates close to zero, and making asset purchases steady at $120 billion per calendar month.

"The U.S. is about to experience single of the greatest inflationary periods in world history," Schiff same connected Chitter. "Any credibility the Fed has left will be incomprehensible. Fed Notes soon South Korean won't be Charles Frederick Worth a Continental." (Geographic region newspaper money in the U.S. was at once exchanged for United States Treasur bonds at 1% of its face value.)

Inflated prices as well?

Despite far-flung fears over rising prices, many experts predict consumer prices will actually go into a period of deflation — and that's on the button what's happened in Australia this week where ABC News according that consumer prices in the country actually born 1.9% in June. It's a record for deflation since the Korean War.

However many another pundits believe the inflation is actually hidden in asset prices, sort o than consumer prices, and that money printing process has underpinned the share market rally in the middle of the epidemic.

Pantera Capital revealed its simple investment strategy for riding out the pandemic:

"Stay long crypto until schools/daycare open. Until then the economy North Korean won't function and money will follow continuously printed."