I suppose the difference is there is a real market under it all and retail traders aren't entirely driving this, but they're the ones left holding the bag when the curtain drops.
If you sold on sentiment here you would always be selling, or just not buying.
Who do you want to be like? Choose wisely my friend but you’ll find that few people with publicly voiced opinions remain in the middle.
If you have a source that you think is a reliable source, please let me know!!!
My haircut guy went from renting to "owning" 2 homes.
Those were amazing times.
The Big Short scene: https://youtu.be/H-XINT-hL5I?t=60
Maybe if you want to bet on the interest getting negative and staying there forever, but then you're back at the same assumptions as if you invest in the stock market.
Many of my friends are posting the same things you state on their social media, and are making it clear they won't be left behind this time.
Not sure what all that means, but it's fascinating.
For me, the real value in Bitcoin wasn't the small-dollars money I made in trading it for lunch money, but rather the exposure to the psychology of day-trading in a volatile market.
Unless your friends are playing the game with leverage, a short-term speculative play will only yield spectacular financial success if the government decides to print a spectacular amount of money.
If you can impart one idea to friends buying into this, or any, market, it might be this: "Don't play for more than you can afford to lose."
Money printer go brrr is funny, but it's not capable of propping up the entire market forever. There's a flight to safety that happens when countries really start printing.
Great for making the economy appear solvent, terrible for everything else.
Historically no one has been able to inflate assets, without inflating the real economy. If the Fed's QE approach is having this effect then even as a dollar spender you would want to hold assets above all else.
From a pure economics standpoint it's feasible to have a society where only some people can afford an asset, and everyone else pays a comparatively small fee to rent the asset roughly equivalent to their entire disposable income. This is a pretty terrible system overall where assets are allocated to those with money and ROI is bounded by the amount that can be. extracted from a servitude class.
The point of this example is that we should not constrain our economic concerns to simple hyper-inflation, as that can mislead us into thinking that as long as we aren't observing consumer price inflation we can print money indefinitely.
This is normally great for the dollar. Where else are you going to go? Switzerland has had a "negative rates, please go away" policy for a while now.
That is my argument: The stock market is going to tank and these meme stonks only go up are going to look chilling in retrospect.
Nathan Tankus goes over this one facet quite well [1] which is that essentially landlords are going to burn themselves down trying to extract rent from tenants that will fundamentally be unable to pay due to the coronavirus. Once those people are forced out of their homes then we'll see the crisis hit full speed.
[1] https://nathantankus.substack.com/p/suspending-evictions-is-...
The problem is that these people are just gambling. Do you really think they have some insight into the market that thousands of Quants and Traders on Wall St. don't have? Go to Vegas, you will see plenty of people flashing cash around when they win on the Roulette table or hit a streak in Blackjack. Are these guys genius players or are they the inevitably of table odds?
With regular stocks, sure they might well be in a bubble but if you knowingly invest money in a bubble, you have to time the pop. If you bought bitcoin at $14k you made almost 50% in a few days but if you didn’t sell then, you’d have been underwater for years
Tether would account for 7.8% of all Bitcoin.
Not sure if that would count as being propped up. It's significant but not entirely propped up, there is a ton of real money in there too.
If I create 100 billion FakeCoins and sell one to my grandmother for $10, suddenly FakeCoin has a 1 trillion dollar market cap. It doesn’t mean there’s anywhere near that much money actually in the market to support that valuation.
If the tiny chunk goes, it all goes tumbling down?
stay far away from bitcoin.
There is zero money "in there" market cap for a non-backed currency is meaningless value. No amount of bitcoin buying will ever put money "into" anything. The money goes to whoever sells its just a trade.
The us is still the world's reserve currency. If the us keeps circling the drain economically and financially and especially politically, we have so much power and raw capability to come back. The big problem is covid-19, where the world can leave us behind as we slowly kill ourselves off. Hmm, I'm almost convincing myself that even us $ could eventually not last. So, I'll just take one of those job offers on hacker news that says we'll get you a visa to come to Amsterdam?
You realize that the world economy is inexorably linked to the US right? If there was such a devastating crash what makes you think the Eurozone would be stable? The UK left the EU and France nearly did, a massive wave of unrest could easily break the union up and the euro would be worse off than the dollar.
Not sure this says what you think. Simple GDP growth math has India and China passing the US in a few decades so that's not even controversial. If you are suggesting some major calamity/collapse in the US that somehow doesn't impact the rest of the world, I would find that highly unlikely.