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Twitter CEO warns of hyperinflation in the US and the world

US inflation could be worse than previously thought. A possible solution? The bitcoin.

This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process.

The looming hyperinflation.

Bloomberg | Getty Images vía Engadget

Twitter co-founder Jack Dorsey provided his take on inflation in the US economy and predicted that things are going to change considerably for the worse. "Hyperinflation is going to change everything," Dorsey posted on his Twitter account Friday night. "It is happening," he said.

This statement was released as consumer price inflation approaches a 30-year high in the United States and concerns are growing around the world about the consequences of the coronavirus pandemic on rising food prices. This phenomenon rebounded in September of this year and is attributed to the cost of energy and disruptions to the global supply chain. Inflation accelerated in September to 0.4% compared to the previous month, compared to 0.3% in August.

For his part, US Federal Reserve Chairman Jerome Powell said on Friday that "it is likely" that inflation pressure will last longer than previously expected and may continue next year.

Dorsey continued to respond to the comments that Internet users left on his Twitter post and assured that hyperinflation will happen in the United States and soon in the world.

Bitcoin as a shield against the crisis

In addition to being the CEO of Twitter, a social network with approximately 206 million active users, Dorsey is an advocate of cryptocurrencies, specifically Bitcoin. He said Square, the credit and debit card processing platform that he co-founded, is looking to get into cryptocurrency mining. Square also owns some bitcoins and makes it easy to trade with them.

The above is relevant because the investor Pul Tudor Jones, when discussing the recent inflation period, believes that owning cryptocurrencies such as Bitcoin could be a hedge against inflation, since, being a digital currency that does not belong to no specific nation could be exempt from the economic crisis.