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Inflation

Is the Metaverse a Hedge for Inflation? (ft. Dogecoin) A little while ago I argued that virtual estate and real estate were inversely correlated -- as seen in the Evergrande example in China where Evergrande stock and MANA coin criss-crossed each other in terms of its ROI. It's yet to be seen how this will play out in the US real estate market but it seems likely that we'll start to see similar patterns emerge as time goes on. The US market may take longer to unravel since it's a bigger apparatus with a lot more moving parts -- talking about it in a coherent way in itself is often a challenge. But there's been a shift in tone from both DC and the media in regards to inflation in the last week, which may be a sign that things are starting to move forward. There's basically two different scenarios that could play out in the current US economy's trajectory -- hyperinflation, or an economic slowdown brought on by the Federal Reserve after they increase interest rates significantly. (Right now the former scenario seems more likely, but that's TBD.) Either way, crypto will probably end up doing well. More details in the video itself. Also as an aside, I also argued that Dogecoin could be an inflation hedge against the crypto market itself. We saw a weird blip this week where the coin pushed itself upwards a little bit, running counter to all of the other coins out there. Will this trend continue? We'll have to wait and see.
COINBASE:MANAUSD
by RyanTanaka
2
DXY Technical Analysis & Forecast -Gone Parabolic, Targets Hit!Traders Dollar has gone parabolic as expected and has been gaining strength. We have been holding our long bias since 89 level. DXY can go much higher from here is the momentum picks up further. However there are few levels on dollar index which you should be aware of. In our analysis we always look at both bearish and bullish scenarios so that we can plan our trades better and are aware of possible risks. In this DXY (Dollar/USD) Technical Analysis & Forecast, lets find out what dollar has been doing and what levels we should be aware of. On the bull side we have: 1. Inverse head and shoulders pattern 2. Double bottom 3. W pattern formation 4. Channel upper end level 5. Parabolic nature On the bear side we have: 1. FCP zones above ahead 2. Gaps left at the bottom which will get filled at some point sooner or later 3. Slightly over bought conditions Rules: 1. Never trade too much 2. Never trade without a confirmation 3. Never rely on signals, do your own analysis and research too ✅ If you found this idea useful, hit the like button, subscribe and share it in other trading forums. ✅ Follow me for future ideas, trade set ups and the updates of this analysis ✅ Don't hesitate to share your ideas, comments, opinions and questions. Take care and trade well -Vik ____________________________________________________ 📌 DISCLAIMER The content on this analysis is subject to change at any time without notice, and is provided for the sole purpose of education only. Not a financial advice or signal. Please make your own independent investment decisions. ____________________________________________________
TVC:DXYLong
by vikinsa
2
Evergrande, Inflation, Supply Chains = Good For Crypto? I did a video version of the editor's pick idea (link below) with more details and a more holistic look at what's been going on in real-estate, politics, and crypto. What happens next is anyone's guess but underlying trends tend to show that the crypto market itself will probably be OK, if not bullish. Some notes from the vid below: - Inflation is here to stay in the US, China’s inflation is very low right now (below 1% with up and down trends, the US is 5.4% and steadily climbing) and is more likely to recover more smoothly in the long run if they allow Evergrande to default on their loans. - The United States was caught off guard by inflation warnings because they have outsourced most of their manufacturing overseas over the last few decades -- out of sight, out of mind. (They refused to consider increasing interest rates or lower gov spending until very recently.) - Crypto is an “inflation friendly” asset because its price is adjustable and is not beholden to supply chain issues. - China’s ban on Bitcoin and other assets are pretty typical of the politics there, but savvy Chinese investors often invest in foreign assets as a way to dodge taxation and political entities taking control of their assets. This includes real-estate, but also things like cryptocurrencies. - In September, the media latched onto the Evergrande controversy and dipping crypto prices by attempting to correlate the two. Data shows otherwise, however. - It will probably take 6-12 months (1 or 2 business cycles) before the effects of Evergrande are seen in the US real-estate markets, but it will most likely be negative for traditional assets. The question is, will this be good or bad for crypto?
BITSTAMP:BTCUSD
by RyanTanaka
1
Modern Monetary Theory vs Crypto (ft. Inflation, Ronald Reagan)Modern Monetary Theory (MMT) is not a "magic money tree" like a lot of (privledged) people say it is. The money for it comes from: - Leveraging the US Dollar's credit rating in exchange for short-term loans - Collateral from debt and related interest rates - Increasing the gap between inflationary assets (whom lean in favor of the wealthy) and labor wages, which often goes unnoticed One thing to note is that instead of raising taxes (which nobody wants to do) the government has been inflating the valuations of assets like real-estate in order to compensate for loss of taxable revenue. The reason why the Federal Reserve isn't likely to increase interest rates, even if they could. Crypto is disruptive to the finance industry because it gives the power of asset ownership to the wider public, which ends up in competition with traditional asset classes like real-estate and stocks. And crypto is winning so far, which is the reason why you hear a lot of cries of "foul play" from the other side. 😭 Traditional finance falls apart when people default on their loan (literally unable to pay it back due to hopelessness), which we briefly saw in 2008, which they covered up with band-aid policies that could come off at any moment. I'm trying to figure out the timing of this right now but it hasn't been easy. But we do know it's coming soon, because COVID has accelerated the trends towards this stuff even more as the government continues to have no plan for how or when this train is going to end. It's only a matter of time. Either way, hold on to your butts, folks. Link to NFT: opensea.io
BITSTAMP:ETHUSD
by RyanTanaka
"Tough Times Ahead" - How Will Crypto Do in Inflationary Times?Many experts out there are coming to the consensus that we're due for a period of high inflation in the near future. The future of the US real-estate market looks uncertain, as well. If the Federal Reserve does nothing in response to inflation (as they've been saying the last few months), it accelerates the trends of people leaving from the big cities, making a market correction more likely. If the Federal Reserve responds to inflation by increasing interest rates, it makes it harder for people to get things like home loans, cooling down the market as well. Either way, I think it's safe to say that a correction is coming. How people will respond to these changes, however, will determine where the crypto markets stand in the near future. "Universal Basic Whitepaper for the Third Wave of Crypto" opensea.io
BITSTAMP:BTCUSDShort
by RyanTanaka
3
How Do We Keep Inflation in Check? Crypto May Be the AnswerTools and Practices for Inflation Down Print Less Money Encourage People and Institutions (inc. Government Spending) to Save Rather than Spend Raise Interest Rates on Loans and Savings Account Raise Taxes Bring Down Costs of Basic Goods (Real-Estate, Healthcare, Education, Food, Supply Chain Companies) Why This Isn’t Likely to Happen in the Near Future The Fed has printed historical amounts of money in order to pay for COVID related expenses, stimulus checks, and government procurement contracts. (After-effects of these spending habits are still unknown.) Government spending is at an all-time high. (Highest now, lowest in the 1970s.) The Fed has publicly stated that no action will be taken, first meeting in Aug 2021, action taken at 2023 at earliest. Politically unpopular. Politically unpopular because certain asset classes stand to gain from high inflation. (e.g. real-estate) Likely Outcomes For the Crypto Industry Both on micro and macro levels, high inflation usually coincides with high cryptocurrency adoption rates. (Venezuela, Nigeria, Argentina, etc.) People “exiting” the US Dollar lowers demand for fiat while increasing demand for crypto - a win-win for some.
BITSTAMP:ETHUSD
by RyanTanaka
2