RE: Crypto carnage23 May 2021 18:47
Here you go.
https://coinmarketcap.com/
Insti’s are moving back into gold. Gold is really in a sweet spot.
# inflation rising because stuff; lumber, cotton, copper etc is in demand from an economic surge as the covid handbrake is released. The supply side can’t keep up and is constrained so factory gate prices rise.
# Fed and now BoE coining the phrase average inflation targets.
# dovish Fed, keeping interest rates.
# US 10 yr down. So when you deduct inflation say 4% (US) from treasury yields 1.6% you get a negative return over 10 years. Hence just as well by gold.
# QE, money printing continues so weakens USD. Jerome won’t stop the QE through fear of stalling a recovery and another ‘taper tantrum’.
# M4, the measure of money in circulation is up 24% in US following covid payments and in UK from furlough.
# we are also not finding enough gold to satisfy population increases. So ounces per capita is down.
Remember last Wednesday the markets ran scared because they thought the Fed would taper and bring forward rate rises, equities tanked. That’s the opposite of the points above.
Now don’t get too comfortable, the housing market is starting to overheat, pay is rising and the labour market in the UK and US has high levels of vacancies that it can’t fill. Rates will rise.
As for crypto’s, well calling it a currency is a misnomer in the sense that it’s not like our fiat currencies. Only the top few and then perhaps only BTC can be used to buy goods without first being converted to fiat and that's rare.
Crypto or rather the blockchain has a huge future. The coins are really only a vehicle to make it work and it should be more appropriately named crypto tokens. E.g
Stellar, XLM, runs its own payments ecosystem and the token used is Lumens. One objective is to provide financial freedom to less developed countries. So if you live in the outback of Nigeria, have a mobile phone (many do) and a bank account you can translate your currency into Lumens and then to USD all on the blockchain securely.
No need to drive 100 miles to the nearest bureau de change. No need to pay bankers in offices to validate the transaction, charge £40 and take 4 days to complete!
The Stellar platform can carry out hundreds of thousands of transactions a second, securely and accurately and is used by mainstream financial institutions. But you see the token has no real value only the fiat currency.
Other examples are micro payments. So you use tokens to pay by the nano second for online media consumption. Or drug companies that use the blockchain to track drugs from production to point of sale. The data then has huge use in a feedback loop. Or you have the likes of Maersk using it for container logistics.
We may even see an emerging He1 adoption the technology. The best time to do it is as a start up. Use the blockchain for international sales and real time Helium prices.
Sorry it’s raining and I was just catching up!
Trek
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