With the money printer going BRRRR (costing $4T from the fed) causing stock prices to be inflated, investors and money managers in the stock market may soon take profits into hard assets that aren't necessarily tied to the value of the dollar, like housing, cryptocurrencies, gold, etc. in order to preserve the wealth that may otherwise be lost due to continued inflation. This could explain why BlackRock and Palantir have bought Real Estate and Gold at large respectively throughout the year.
Note, cryptocurrencies are at risk of going down with equities if the market doesn't consider it as a commodity. The coming months maybe even weeks will reveal as to whether it matches or disassociates correlation with the stock market as the SPX/CPIAUCSL chart reaches its 1.618 fib extension from the 2000 dot com highs to the 2008 lows, and the Dow theory continues to play out.
Perhaps all this money printing was done to usher in a Great Reset of economics; to meet the expected productivity from the innovations of the 4th industrial revolution? offset panic from retirees? encourage the youth to invest and adopt crypto as an inflation hedge?
Will a crash come? Maybe, maybe not, but I think if it were to happen, the $ may be transferred to blockchain tech as it serves as a commodity with major innovative growth potential to digitize most businesses and services to make them ESG compliant.
Overall, stagflation will likely occur in response to the fed attempting to delay the retirement and debt crisis as long as possible, ongoing high unemployment (workers incentivized to collect UI as it pays more than min. wage), and possible future low economic growth (as a result of goods being unable to be transported due to COVID-19). One could argue that deflation is more likely to occur if innovations in blockchain technology spread outside of Finance and into other areas such as supply chain automation, insurance, identity, etc, allowing productivity to match or even outpace the supply of money. But such progress has yet to have been either made or discovered depending on the respective industry, let alone hesitancy of adoption due to BTC's perceived low ESG score.
Note, cryptocurrencies are at risk of going down with equities if the market doesn't consider it as a commodity. The coming months maybe even weeks will reveal as to whether it matches or disassociates correlation with the stock market as the SPX/CPIAUCSL chart reaches its 1.618 fib extension from the 2000 dot com highs to the 2008 lows, and the Dow theory continues to play out.
Perhaps all this money printing was done to usher in a Great Reset of economics; to meet the expected productivity from the innovations of the 4th industrial revolution? offset panic from retirees? encourage the youth to invest and adopt crypto as an inflation hedge?
Will a crash come? Maybe, maybe not, but I think if it were to happen, the $ may be transferred to blockchain tech as it serves as a commodity with major innovative growth potential to digitize most businesses and services to make them ESG compliant.
Overall, stagflation will likely occur in response to the fed attempting to delay the retirement and debt crisis as long as possible, ongoing high unemployment (workers incentivized to collect UI as it pays more than min. wage), and possible future low economic growth (as a result of goods being unable to be transported due to COVID-19). One could argue that deflation is more likely to occur if innovations in blockchain technology spread outside of Finance and into other areas such as supply chain automation, insurance, identity, etc, allowing productivity to match or even outpace the supply of money. But such progress has yet to have been either made or discovered depending on the respective industry, let alone hesitancy of adoption due to BTC's perceived low ESG score.
Use proper risk management on hard assets going forward as they may be the only asset retaining value over the next years, or possibly throughout the end of the decade.