• PayPal Mafia Goes All-In on USD What Does the Bear Jacket Mean for Crypto? (Opinion)

  • What does this signify for the crypto industry? Peter Thiel’s Palantir is preparing for more inflation by purchasing gold rather than bitcoin.

    With its huge gold buy this month, Palantir says it is ready for a black swan occurrence. According to Bloomberg, the company takes bitcoin and gold as payment, but no one has paid with either.

    According to a recent story, Peter Thiel’s cloud computing company is also interested in amassing bitcoin:

    “This month, the corporation spent $50.7 million on gold as part of an unconventional investing plan that also includes startups, blank-check companies, and possibly Bitcoin. Palantir had earlier stated that it will accept Bitcoin as payment before later adding precious metals. According to a Palantir spokesperson, “no one has yet paid in Bitcoin or gold.”

    Palantir Technologies (PLTR) announced in its August 12 earnings release that it had just purchased $50.7 million in 100-ounce gold bars.

    At the time Palantir made the purchase, the spot price of gold, or the current average market price for an ounce, ranged from $1,813 at its highest on August 1 to $1,718 at its lowest on August 7.

    If the intelligence and analytics organization is worth its market capitalization, its acquisitions department locked in around the 7th, and the company filed on its 10-Q five days later.

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    In its Q2 SEC filing, the company stated:

    “The Company spent $50.7 million for 100-ounce gold bars in August 2021. Such purchase will initially be held in a secure third-party facility in the northeastern United States, and the Company has the ability to take physical ownership of the gold bars stored at the facility at any time with reasonable notice.”

    First, these two people, Elon Musk and Peter Thiel, strive to invent Bitcoin and end up creating PayPal (PYPL) as a result of their efforts. Palantir just paid $50 million for 100-ounce gold bars, less than a year after Tesla put billions of dollars on bitcoin (BTC).

    Though he hasn’t tweeted about it, one may suppose Peter Schiff is overjoyed that Palantir put such a pessimistic inflation hedge in gold rather than bitcoin. These guys aren’t going to stop looking for any inflation shelter they can find.

    Palantir’s move represents an extremely unfavorable U.S. dollar inflation hedge. They can call it planning for a black swan event, but whatever the catalyst is, the risk they are hedging is that it will both damage confidence in the dollar and prompt US financial policymakers to continue substantially boosting its supply. Expecting additional monetary expansion after the 2008 financial crisis and the coronavirus outbreak is not a wild bet.

    Keep in mind that federal contracts account for the vast majority of Palantir’s huge annual earnings. So they’d be familiar with US currency inflation. They are the effects of US currency inflation. And they’re putting some of the proceeds from dollar inflation-funded contracts – as federal expenditure continues to rise with little sign of abating – into inflation-proofing assets like gold.

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    This is quite bullish in terms of the bitcoin industry’s core argument. As if it needed any more proof. It will continue to receive it from industry titans, particularly the engineering-minded among them such as Musk and Thiel, who is a very technical problem solver at product design as well as a business engineer.

    High moments in Google search interest for “US dollar inflation” correspond to bitcoin price increases. Hedge fund titans such as Paul Tudor Jones and Ray Dalio, who have dabbled in “digital assets,” typically cite inflation protection as a reason for retaining a tiny portion of their money under control in bitcoin.

    And it’s not just Bitcoin that the PayPal mafia is using as inflation insurance to protect and enhance the riches of their firms. Thiel was instrumental in the creation of Ethereum and has made a number of early-stage investments in blockchain companies.

    Palantir’s decision is also believed to have included an element of global strategic competitiveness in the aftermath of years of foreign central banks hoovering up enormous volumes of gold. Thiel is well aware of movements in the worldwide balances of economic power.

    China is now taking a hard pass on bitcoin. El Salvador is off to a flying start. Just wait until the world’s sovereign superpowers compete over the most strategically vital cryptocurrency. That is the moon.

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