It Is The “Largest Wealth Transfer In History” As The 99% Supports The 1% Of Crypto
After falling under $44k this week, Bitcoin price went back towards $50k to mark the start of the weekend. Currently trading around $49k, the leading cryptocurrency is now just 24.6% away from its all-time high.
This week, Avalanche is leading the market with its 7-days gains of 165% along with Arweave, Audius, Solana, and Terra, which are up 50% to 80% during the same period. AR -3.30% Arweave / USD ARUSD $ 10.47
-$0.35-3.30% Volume 13.8 m Change -$0.35 Open $10.47 Circulating 33.39 m Market Cap 349.61 m 6 mon Is This The Beginning of the Santa Rally? Markets Jump in Asia Session 6 mon Cryptocurrencies Sees Fresh Signs of Green, But Will It Last This Time? 6 mon Crypto Outliers: Terra (LUNA) Amasses $16.9 Bln & Surpass BSC, Avalanche (AVAX) Aims for 1 Million Daily Transactions AUDIO -0.17% Audius / USD AUDIOUSD $ 0.38
$0.00-0.17% Volume 14.59 m Change $0.00 Open $0.38 Circulating 719.62 m Market Cap 276.87 m 10 mon Bitcoin Surges Past $50k on Low Funding But Institutional Investors Are More Bullish on Ethereum 10 mon It Is The “Largest Wealth Transfer In History” As The 99% Supports The 1% Of Crypto 10 mon South Koreans Turn to Serum (SRM) As Solana (SOL) Ecosystem Pumps SOL -1.03% Solana / USD SOLUSD $ 42.27
-$0.44-1.03% Volume 1.28 b Change -$0.44 Open $42.27 Circulating 342.64 m Market Cap 14.48 b 5 mon Coinbase Predicts Substantial Growth of Newer L1 Chains & Institutionalization of Regulated DeFi 5 mon Bitcoin and Ether Dump More Going Into Year-End, ETH Killers Showing Great Momentum 6 mon Bitcoin and Ether Breaks Trend With Outflows While Altcoins Continue to See Inflows LUNA 21,296.88% Luna Coin / USD LUNAUSD $ 1.20
$255.1021,296.88% Volume 343.36 K Change $255.10 Open $1.20 Circulating 1.71 m Market Cap 2.04 m 5 mon Bitcoin and Ether Dump More Going Into Year-End, ETH Killers Showing Great Momentum 5 mon UST Grows 55x to Become the 4th Largest Stablecoin, Terra DeFi Ecosystem Amasses $18B in Assets 6 mon Is This The Beginning of the Santa Rally? Markets Jump in Asia Session
With Bitcoin (BTC) eyeing the psychological level of $50,000 and hoping for a strong break, central banks officials set to get together at Jackson Hole, Wyoming, where Fed Chair Jerome Powell will deliver the highly anticipated speech to lay out his plans to normalize monetary policy, can affect the market sentiments negatively.
Titled “Macroeconomic Policy in an Uneven Economy,” the speech will be streamed live next week on Friday, August 27.
With discussions around tapering already started, heavy volatility is expected next week, which could affect crypto markets as well.
On Friday, the US dollar index went above 93.7, a level last seen in early November, and is currently trading at 93.458.
Gold meanwhile is currently at $1,780 per ounce, up from an over four-month low at $1,687 on August 9th.
#Bitcoin the Reserve Asset and #Dollar Currency –
The dollar's more than 300% advance vs. peers since President Richard Nixon ended the gold peg in 1971 is evidence the greenback is the least-worst currency, but we believe Bitcoin represents the digital future. pic.twitter.com/fgmlWEVzyq
— Mike McGlone (@mikemcglone11) August 20, 2021
In the crypto market, meanwhile, “the largest wealth transfer in history … from nocoiners and boomers to crypto enthusiasts” is happening, noted trade and economist Alex Kruger.
According to SpartanBlack, a partner at crypto fund The Spartan Group, it’s the other 99%, “everyone else who is not in crypto” supporting the 1% of crypto, “and the funny thing is that they have no idea they are doing it.”
He goes on to explain how the thousands of new millionaires and many billionaires as well minted in crypto are going to cash out a portion of their newfound wealth to buy houses, cars, yachts, jewelry, club memberships, etc.
This, in turn, drives up asset prices that result in real-world inflation, but it is a slow and organic process, and as such, “you don’t see that inflation happening.”
“The people who are not in crypto also happen to be the ones who are less tech-savvy and tend to have a set view of how the world works. They made their mark in the old world order, and they think all of this is a massive bubble or ponzi that will crash spectacularly. That view keeps them away, and they keep subsidizing us year after year unknowingly until at some point it becomes clear that crypto is the new new thing, and it isn’t going away,” said Spartan Black.
Overall, it is a generational wealth transfer from the old to the young, from the clueless to the tech-savvy, from the risk-averse folks to the risk-takers, and from the establishment to the guys who dare to dream up a new world order, he added.