Why Cryptocurrency Will Outperform And Its Tie To The Monetary Situation
Over the last decade, the two assets that have outperformed in the markets are cryptocurrency and high P/E technology stocks.
In this video I discuss why being in either of these could be setting one up for a major run. We are seeing the monetary situation change, with the Fed and interest rates following their cycles, which will bring risk on. That mean, the cycle of the last couple years could be ending with another monetary shift taking place. This means market psychology will change, providing a possible thrust to these two asset classes.
▶️ 3Speak
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Peoples are becoming more interested in cryptocurrency as compared to Fiat day by day , they love holding cryptocurrencies instead of Fiat in a bank account. In next 5 to 10 years cryptocurrencies will be used every where
It will be interesting to see how many more states follow in the footsteps of El Salvador, CAF, and Argentina to make Bitcoin and/or crypto legal forms of payment in their jurisdictions during the upcoming bull run. Major changes are afoot.
With all these things happening, it would seem that we are really primed for a bull run. It will be interesting to see how the public will react to these changes. There was a big pushback last time, but I'm hoping more will dip their toes to crypto this time.
It is just a matter of time. The force that BTC is coming with us quite massive and it is evident that the adoption can't be denied any longer
If this is the case, crypto will become more popular day by day. Also many people are currently holding crypto instead of fiat. If this continues, we will revert to a bull market.
I love crypto because despotic government hates it. As government becomes more psychotic and despotic, it will drive more people into crypto. As the risk from feds increases, crypto looks less risky by comparison. Just my opinion. !BBH
@taskmaster4450! Your Content Is Awesome so I just sent 1 $BBH (Bitcoin Backed Hive) to your account on behalf of @fiberfrau. (3/5)
Summary:
In this episode, the speaker discusses why cryptocurrencies are likely to outperform in the coming years and how this ties into the current monetary situation. He highlights the trends of asset classes that have outperformed, such as cryptocurrencies like Bitcoin and technology stocks, over the last decade. Additionally, he delves into the role of central banks in influencing market perceptions and asset prices through policies like interest rate adjustments and quantitative easing. The speaker emphasizes the impact of financialization on market dynamics and suggests that cryptocurrencies and high PE tech stocks could continue to benefit from these trends.
Detailed Article:
The speaker opens the episode by noting the notable outperformance of two asset classes in recent years: cryptocurrencies, predominantly Bitcoin, and technology stocks. He points out that these sectors have excelled in the last decade and are expected to continue doing so. The speaker then delves into the impact of the monetization of various systems by central banks, particularly in response to economic downturns and market hiccups.
The discussion revolves around the fluctuation of interest rates, with the speaker predicting a shift towards lowering interest rates and potential interventions by central banks to increase liquidity. He clarifies that while terms like "injecting liquidity" are commonly used, the actual mechanics of quantitative easing involve the removal of certain assets from bank balance sheets. Despite this, market perceptions based on these actions often drive investor behavior.
The speaker touches on the concept of financialization and distinguishes it from the real economy, highlighting how market participants respond more to perceptions rather than actual monetary policies. He stresses the importance of keeping an eye on market psychology and signals from central banks to navigate investment decisions effectively.
Furthermore, the speaker anticipates a period where financial assets, rather than real assets or the economy as a whole, are likely to benefit from central bank interventions and market dynamics. He predicts potential market movements in the coming years, emphasizing the separation between the market trends and the broader economic landscape.
In the latter part of the episode, the speaker mentions upcoming events like potential SEC approval of a Bitcoin spot ETF and the Bitcoin halving, which could impact the cryptocurrency market. He underscores the notion of "risk on, risk off" dynamics in investment choices, cautioning that high PE tech stocks and cryptocurrencies could face fluctuations based on market sentiment.
Overall, the speaker provides a detailed analysis of the current monetary landscape, central bank interventions, market psychology, and the potential implications for cryptocurrencies and technology stocks in the future. He concludes by encouraging viewers to stay informed and attentive to market trends while navigating investment decisions in this evolving financial environment.
Notice: This is an AI-generated summary based on a transcript of the video. The summarization of the videos in this channel was requested/approved by the channel owner.