The founder of Morgan Creek Capital explains how the Federal Reserve is destroying your purchasing power and why it could get a lot worse.
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Inflation is front-page news again after the Labor Department revealed this week that the United States consumer price index soared to 8.5% year-over-year in March — the highest in over four decades. According to crypto industry veteran and Morgan Creek Capital founder Mark Yusko, price increases aren’t the real problem.
“This isn’t inflation. This is currency devaluation,” Yusko told Cointelegraph business editor Sam Bourgi in an exclusive interview at the Bitcoin 2022 conference in Miami. Currency devaluation directly impacts consumers’ purchasing power, which refers to how many goods and services a unit of money can buy.
Yusko was also asked about Bitcoin’s (BTC) lackluster performance over the past six months and whether he expects this phase of price discovery to continue indefinitely. In his view, $100,000 BTC is a strong likelihood eventually, but investors need to be patient as adoption continues to grow.
Yusko and Bourgi also threw shade at traditional portfolio management strategies that teach investors to allocate 60% of their holdings to stocks and 40% to bonds. “Who in their right mind is holding bonds right now?” Bourgi asked. “Only central banks,” Yusko replied. You won’t want to miss his full explanation.
You can watch the full interview on Cointelegraph’s YouTube page. Be sure to hit those like and subscribe buttons for all our future videos and updates. You can also watch our full lineup of interviews from the Bitcoin conference.