billyjoeallen
Member
In the wake of the crash and banking crisis in 2008, there were loud cries to "create another bubble." The Central banks needed to not just save the banking sector from self destruction, but to reflate the economy. Creating such a bubble would be easy: simply print more money, but they didn't know how to do that without endangering the banks when the new bubble inevitably collapsed. We inadvertently gave them the answer.
The crypto bubble is not primarily financed with credit, unlike all recent bubbles such as the dot com bubble of the late nineties and the housing bubble of 2002-2008. Credit cards cannot be used easily or commonly to buy BTC or altcoins because the possibility of chargebacks makes it too risky. It is believed by many that the wall street money currently poring into our sector is comprised mainly of profits from the stock market juggernaut fueled by artificially low interest rates and central bank balance sheet expansion. Simply put, easy money had already saturated every other asset class (stocks, bonds, commodities, real estate) making bargains almost impossible to find. So bargain hunters were forced to search farther afield.
The United States Federal Reserve system is charged with a dual mandate of full employment and price stability. These two missions are contradictory unless prices can be inflated in an area that isn't reflected by the CPI, PPI or other inflation indexes. Crypto fits this need almost perfectly. The Fed can continue to print money, to prop up the stock market and the bond market to keep pension funds and other retirement funds solvent as baby boomers face retirement, while preventing those same boomers' houses from plummeting in value by hikes in interest rates. Basically they want to hide inflation somewhere where economists and consumers won't notice it.
Along with allowing immigration to keep labor costs down, the crypto bubble is the way the Fed is keeping all of that newly printed money from spilling out into the greater economy and hiking consumer prices. We won't spend our new riches. Who in their right mind would spend money that goes UP in value? Almost all masternode owners are now millionaires. The money printing was always a massive giveaway to the rich, we just happen to be part of the 1% now too.
In the long run, cryptocurrencies will be the death of the fiat system, but the Fed and other central banks are too bogged down in more immediate concerns to care. When we start seeing central banks listing crypto as part of their foreign currency reserves, the end will be in sight. Gresham's law will kick into overdrive. Dash will retain it's own lobbying firm on K street. We will start to see people without crypto as we now see people without cell phones: as anachronisms. Cryptographically signing wallets will replace wearing Rolex watches and driving sports cars as the new status signals. The new capital managers will be cryptoprenuers, not banksters, and finally FINALLY savers will replace consumers as the drivers of the economy.
The biggest problem I see is the multi-terawatt electricity suckage from the 100% POW coins. Dash's PR team and lobbying firm(s) can use that issue to drive market share our way, but that's a post for another day.
The crypto bubble is not primarily financed with credit, unlike all recent bubbles such as the dot com bubble of the late nineties and the housing bubble of 2002-2008. Credit cards cannot be used easily or commonly to buy BTC or altcoins because the possibility of chargebacks makes it too risky. It is believed by many that the wall street money currently poring into our sector is comprised mainly of profits from the stock market juggernaut fueled by artificially low interest rates and central bank balance sheet expansion. Simply put, easy money had already saturated every other asset class (stocks, bonds, commodities, real estate) making bargains almost impossible to find. So bargain hunters were forced to search farther afield.
The United States Federal Reserve system is charged with a dual mandate of full employment and price stability. These two missions are contradictory unless prices can be inflated in an area that isn't reflected by the CPI, PPI or other inflation indexes. Crypto fits this need almost perfectly. The Fed can continue to print money, to prop up the stock market and the bond market to keep pension funds and other retirement funds solvent as baby boomers face retirement, while preventing those same boomers' houses from plummeting in value by hikes in interest rates. Basically they want to hide inflation somewhere where economists and consumers won't notice it.
Along with allowing immigration to keep labor costs down, the crypto bubble is the way the Fed is keeping all of that newly printed money from spilling out into the greater economy and hiking consumer prices. We won't spend our new riches. Who in their right mind would spend money that goes UP in value? Almost all masternode owners are now millionaires. The money printing was always a massive giveaway to the rich, we just happen to be part of the 1% now too.
In the long run, cryptocurrencies will be the death of the fiat system, but the Fed and other central banks are too bogged down in more immediate concerns to care. When we start seeing central banks listing crypto as part of their foreign currency reserves, the end will be in sight. Gresham's law will kick into overdrive. Dash will retain it's own lobbying firm on K street. We will start to see people without crypto as we now see people without cell phones: as anachronisms. Cryptographically signing wallets will replace wearing Rolex watches and driving sports cars as the new status signals. The new capital managers will be cryptoprenuers, not banksters, and finally FINALLY savers will replace consumers as the drivers of the economy.
The biggest problem I see is the multi-terawatt electricity suckage from the 100% POW coins. Dash's PR team and lobbying firm(s) can use that issue to drive market share our way, but that's a post for another day.
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