With the war in Ukraine, the fallout from the pandemic and record levels of inflation, the U.S. economy has taken a blow in 2022. But it's not clear what, exactly, is causing the ongoing downturn. A group of finance experts joined Roundtable to discuss inflation, markets, policy and their continued prognosis for the economy. In this segment, they examine how inflation is affecting financial markets, both crypto and Fiat.
While the decreasing price of Bitcoin has caused some to declare it a failed currency, David Zell argues that such detractors fundamentally misunderstand the project.
"I'd want to start by addressing the narrative that Bitcoin is a hedge against CPI inflation," he says. "Bitcoin is a technological solution to escaping Fiat currency regimes. It is a hedge on the collapse of the sovereign bond market. It is a hedge against hyper inflation. It's not a hedge against CPI."
"There's a lot of nonsense in the crypto markets," he adds. "Since 2009, there have been anywhere between 13,000 and 19,000 crypto projects, 67% of which have lost 99% of their value. What we see is a whole lot of cryptos going to zero in a bear market, and we'll probably see winners when the bull market starts again."
Jon Najarian adds that the losses in the crypto market are inevitable with risky investments.
"Bitcoin is a very interesting technological breakthrough. Is it a protector of wealth? No, it has not proven to be. It is a creator, at times, of wealth," he says. "There will be some that choose to take some money off the table and some that do not, and some of those that do not will get what they frequently get when they stay too long at the punch bowl."
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Watch the full discussion below:
Jon Najarian, Co-Host, CNBC Halftime Report
Marc LoPresti, Managing Director, Moneta Advisory Partners
David Zell, Founder, Bitcoin Policy Institute