12/21/2023 0 Comments Bitcoin expert big nose![]() However, those expecting this cycle to play differently than previous ones will likely have a rude awakening. Those expecting an imminent crash will keep waiting. While many investors stated that AI and supercomputing constitute the next great megatrends since the internet, blockchain-based digital assets continue to disintermediate the financial system under everyone's nose to the clip of 200% compounded annually. 200% compounded annual growth for over a decade portends of something larger. Following a full embrace of deficit monetization in 2021, Bitcoin is the only asset set to outpace Central Bank printing.īitcoin is not the embodiment of the casino mentality in financial markets as some would suggest. Continue this act for decades, and financial markets become a casino over time as investors incessantly reach for returns above the devaluation rate. As the rate increases, even risky investments such as equities yield less than the rate at which the monetary base is devalued. Mild devaluation pushes investors further out into the risk curve as safe investments have a negative real yield. We have entered the paradigm shift from interest rate based easing to devaluation based easing. With M2 expansion reaching 25.80% in 2020, everything will fail to hold value against the currency as governments take value from the currency in circulation by printing to finance deficit spending programs. Junk bonds yield 4.41%, which is roughly the rate at which the underlying companies typically default. Currently, 10-year treasuries yield 1.60%. Bitcoin ( BTC-USD) is the black hole that is sucking market capitalization out of every failing store of value in the traditional financial marketplace.
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