The dollar has been collapsing for decades. What was the buying power of the dollar 50 years ago compared to today? When I say the dollar is collapsing I mean the buying power reduces as time goes on.
Things are more expensive across the board. And not just the USA but Australia, UK etc. They are blaming Covid for this but perhaps this is the new normal. Banks also offer pathetic savings interest rates. You can't leave dollars in a bank account because it loses value and does not earn any significant interest, certainly less than the inflation rate. That's why Max Keiser is saying cash is trash. So why would people exit the crypto market causing a collapse of the prices when cash is trash?
Cheers for clarifying what you mean by collapsing (devaluation). The fundamental nature of our monetary system is growth = inflation of prices which you get by devaluation of currency and debt.
Absolutely cash is trash right now because QE is stuck in banks and the wealthy and it’s buying up financial assets. Your wages haven’t increased yet your property just flew up 30%. I have a stack of posts about how that functions on here.
You need to remember the entire USD monetary system is leveraged 25x. THAT is the problem which you are forgetting. Debt is a zero sum game because it nets out to zero (asset & liability). Of The money you see in the system, only 4% of it is real which is why the govts shit themselves over a market crash because when it unwinds it causes a liquidity crises at the speed of computers.
We did not allow a reset post GFC. We did not allow a reset post pandemic. So now we have stock valuations at 70x earning instead of 10x. Loss of confidence = liquidity crises = deflationary spiral = Prices fall = hyperinflation outcome.
If Bitcoin was $100 and all debt unwound the price of Bitcoin is $4. Crypto pricing is part of the fiat system and bound to the same rules and risks. If I walk up to you and offer you 0.00000001 BTC for your house you have NFI whether that is a good deal or not unless you convert into fiat value. That’s the reality, not the narrative.
When BTC taps 200k+ in the next few months it is by design (reality), not the narrative. The peak of 2017 you held and everybody dumped. You bought the narrative. In a few months time at 200K+ it will dump. If you hold it’s because you bought the narrative.
Don’t kid yourself the downswing on crypto after the parabolic run is going to melt faces off people
While you scream diamond 🙌
