In an interview on Monday (March 19) on CNBC’s “Power Lunch,” Jack Mallers, the founder and CEO of Zap Solutions, a Bitcoin payments start-up that leverages the Lightning Network, weighed in on the post-SVB collapse rally that has driven Bitcoin’s price over $28,000.
Mallers attributed Bitcoin’s impressive performance to its fixed supply, which he claimed sets it apart from all other financial instruments. Mallers began his explanation by highlighting the Federal Reserve’s impact on the financial system and citing the market term “demand finds supply,” which he illustrated with several examples. According to Mallers, if there is demand for any asset, supply will inevitably meet it, whether it be high-end real estate, precious metals, or natural resources.
However, he claims that Bitcoin is the exception to this rule, as it is the only monetary instrument in human history with a fixed supply. Therefore, no matter how much demand increases, no one can create more Bitcoin. This fundamental aspect of the cryptocurrency is what Mallers believes is driving its price upward.
Mallers also discussed the distributed and sound nature of Bitcoin’s monetary policy, contrasting it with the perceived unreliability of the dollar and the Federal Reserve. He argued that the dollar is undoubtedly inflating, and those who deny this are “out of their minds.” He expressed his distrust in the Fed, accusing them of constantly breaking the trust upon which the monetary system is built.
By owning Bitcoin, Mallers explained, he doesn’t have to rely on the Fed’s trustworthiness, as the cryptocurrency’s monetary policy is immune to manipulation. This assurance allows him to confidently hold and save Bitcoin, knowing that no one can deflate its value.
Featured Image via Pixabay