cryptocurrency

Thomas Peterffy: Bitcoin won’t be worth anything

Thomas Peterffy – Brokerage Pioneer and Billionaire Investor – Explained in a recent interview He believes that Bitcoin will eventually become worthless as inflation is set to continue for several more years.

Thomas Peterffy Says Bitcoin Will Fall To Zero

The 77-year-old founder and president of the online trading platform Interactive Brokers notes the fact that inflation in America has reached 9.1%, a new all-time high for the most powerful country in the world. Markets everywhere are taking a hit, stocks and crypto assets plummeted as the news grabbed the headlines.

Peterfi said:

I think inflationary pressures will last for years, not months. This is not a short-term issue.

At the time of writing, Peterfi’s fortune is over $18 billion. He says that inflation exists for several reasons, one of the most important of which is that the world’s governments will not stop spending. He also says disruptions in supply chains have dealt heavy blows to the US economy, and says there aren’t enough skilled workers to ensure market stability. He indicated:

As the Federal Reserve raises interest rates, it raises the amount the state must pay for the service. This is a vicious cycle that will eventually lead to an explosion of debt.

Not long ago, the Federal Reserve announced that it raised interest rates again by 75 percentage points. Peterfi said he doesn’t think what happened in the early 1980s will happen this time around. At the time, Fed rates rose to double digits. This wiped out inflation, but eventually led to a very severe recession. He commented:

I don’t think the Fed will keep its ‘do what it takes’ promise [to bring down inflation] Because they are afraid of destroying the economy and blowing up the debt issue. The Fed will set benchmark rates at around four percent, and as a result, inflation will hover around six percent over the next several years. There will be stagflation for a while.

The good news is that he thinks US markets will crash soon, and commented:

Eventually, higher prices will catch up. Stocks will enter a prolonged period of a bull market driven by inflation. This is the time to do research and accumulate company stocks.

He is less confident in the cryptocurrency market. At the beginning of the year, he said that dedicating roughly two to three percent of a person’s wallet to bitcoin or cryptocurrency as a way to protect himself from inflation was the right thing to do. However, he now says:

I think the chances are very high [bitcoin] It will become worthless or prohibited.

The currency fell dramatically

At the time of writing, Bitcoin is struggling to maintain a position of $19,000.

This is just nine months after the asset reached a new all-time high of about $68,000 per unit.

Tags: bitcoin, inflation, thomas peterfi

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