inflation rate collapsed from 9% to 3% in the last 18 months. it is still rising. Not sure the logic behind why you think equity markets and bitcoin cannot rise together
How much money has crypto removed from the equities market?
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It limits something.
The Trump Trade is supposed to be a stronger dollar but he is also espousing bitcoin. I am sure its for votes....but if he wants both: a stronger dollar and appreciating bitcoin then the value needs to come out of something else. Maybe energy prices. Maybe megacaps.
The downside of fiat currency is printing. Then what is the process of forking crypto? Currency cannot be the limiter for the market.
Back to politics.. Trump cannot have the cake and eat it.
Let's look back to history. After WW2, USD replaced GBP as the reserved currency. It was because Britain was no longer a superpower. A hands off approach and asking for security payment and still wanting the USD as reserved currency is a tough act. Then again, a ballooning deficit of >$30T is not sustainable.
Back to politics.. Trump cannot have the cake and eat it.
Let's look back to history. After WW2, USD replaced GBP as the reserved currency. It was because Britain was no longer a superpower. A hands off approach and asking for security payment and still wanting the USD as reserved currency is a tough act. Then again, a ballooning deficit of >$30T is not sustainable.
If its Kamala, the days of the US being a super power and the USD being the reserve currency is numbered. MAGA wont be signing up for service.
I didn’t say that crypto is in fact limiting equities but I wasn’t prepared to make an argument with some factual numbers. That’s why I posed the question here.
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I haven’t really been following the campaign this round but I remember Trump saying during his previous term that the dollar was too strong. A strong dollar makes it harder for other countries to buy our products. Commodities are inversely correlated to the strength of the dollar.
It’s not perfectly correlated but it’s definitely a hedge against the strength of the dollar. Equities are the same.
It might help if we could efficiently manufacture and export goods that other countries wanted.
Otherwise they would may as well just hold and pay in rmbs.
Because it's not a real inflation hedge.
An interesting thing about the whole "crypto is an inflation hedge" nonsense is that one can actually compute the previous correlation between the price and their favorite inflation metric.
If you bother to do that, you find out it sucks as an inflation hedge.
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My business is grain. It’s one product that we export a lot of and the value of the dollar is highly correlated (inversely). If you look at long term charts the grain market lows occur when the dollar is strongest and the highs occur when the dollar weakest.