“Don’t let short term losses in Bitcoin sour you on Bitcoin, crypto or distributed computing,” Weinstein said. “Don’t let Bitcoin zealots chase you away either.”
Eric Weinstein, managing director of Thiel Capital and host of the popular podcast urged his followers over the weekend not to get caught up in Bitcoin’s (BTC) daily fluctuations. He seemed to feel that it was wiser to focus on the cryptocurrency’s ability to hedge against currency debasement at the hands of central banks.
Bitcoin and other “hard-money” assets like gold and silver could be sound alternatives to the “disguised actions” of central banks, Weinstein tweeted to his nearly 485,000 followers. “Figuring out how we hedge against central bankers printing and devaluing fiat currency remains our upcoming rendezvous with the market,” he said, adding:
When Weinstein tweeted the message, Bitcoin was trading at $48,662.20. It would eventually bottom around $47,000 before rebounding sharply to a price of $54,200 on Monday.
Bitcoin’s role as a deflationary hedge is disputed within mainstream investment circles, although there appears to be an acknowledgment that the digital asset is encroaching on gold’s market share. Bitcoin’s value has not only appreciated in dollar terms but also when priced in bullion. As Cointelegraph reported last month, BTC’s price against gold increased nearly sevenfold between October 2020 and March 2021.
Weinstein previously described himself as “not a Bitcoiner,” adding that he has “contributed nothing to the vision of distributed computing.” However, he’s urged Bitcoiners to stop measuring their wealth in dollar terms and to instead focus on a higher goal. His views about the crumbling nature of fiat add credence to that view.