US/European interest rates are still close to zero. When they begin to substantially increase their rates, combined with lower profit margins for companies, we will witness the economic and social collapse.Vinícius Capucho
There is the macroeconomic concept before Gold and BitCoin that few observe.
1. I’m not saying that BTC is worthless, but it’s certainly worth a lot less than we think;
2. I’m not saying that Gold is worthless, but it’s certainly worth a lot less than we think;
3. BTC is experiencing the biggest boomer – viralization – in history: mainly through social media;
4. Hyperinflation + high interest rates + extreme decrease in supply and demand + drying up of liquidity by Central Banks + increase in energy and food costs + increase in Artificial Intelligence and Process Automation + increase in unemployment and informality + = Massive impoverishment of the population. All the Liquidity of the assets traded in the financial market: Gold, BitCoin, Silver, Companies among others, will be DRAINED from the financial system.
The crypto-wind market will suffer hard, just like everyone else. The bigger question is: will it ever return to the highs? Probably yes. However, in economic mega-bubbles, it might last 20 years or more: IF Artificial Intelligence, Geospatial Localization and full-blown Industrial Automation don’t absolutely destroy formal jobs – which I believe. Man will live only to eat with government subsidies.
Massive Wealth Transfer and “Democratic Socialism” successfully deployed.
How will Gold/BitCoin, or any other asset, quickly return to highs if there is no financial liquidity? jobs? Economic Normalization? Consequently: Buyers!
This is exactly the context being deployed slowly. Your money is not left over now, even less will be left over to buy Assets in the future. Assets go up because there are STILL buyers with “cash left”. But until when?
Maybe you don’t understand my reasoning. But, in short, it is written. I just can’t write down my entire understanding at this point. I’ll leave it for a next book.