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 -8.41% Arweave / USD ARUSD $ 46.35
-$3.90-8.41% Volume 70.15 m Change -$3.90 Open $46.35 Circulating 33.39 m Market Cap 1.55 b 1 d Risk-on Assets Recover and Start Rallying After Fed Chair Pushes Back Decision on Tapering to November 3 w “Moon” Is Not the Limit for Bitcoin, says Chainalysis CEO But be Wary of Downside Risk & Level of Retail Mania 1 mon Driven by Real Demand Bitcoin Hits Resistance but Retail and Speculator Euphoria Is Not Here Yet AUDIO -3.33% Audius / USD AUDIOUSD $ 2.14
-$0.07-3.33% Volume 42.66 m Change -$0.07 Open $2.14 Circulating 406.08 m Market Cap 869.22 m 1 mon Bitcoin Surges Past $50k on Low Funding But Institutional Investors Are More Bullish on Ethereum 1 mon It Is The “Largest Wealth Transfer In History” As The 99% Supports The 1% Of Crypto 1 mon South Koreans Turn to Serum (SRM) As Solana (SOL) Ecosystem Pumps SOL -4.41% Solana / USD SOLUSD $ 138.88
-$6.12-4.41% Volume 3.86 b Change -$6.12 Open $138.88 Circulating 297.28 m Market Cap 41.29 b 10 h Solana-Based DAO Developer, Grape Network, Raises $1.2 Million in Funding 1 d Wormhole Launches Solana-Ethereum Bridge to Move NFTs Cross-Chain 1 d Risk-on Assets Recover and Start Rallying After Fed Chair Pushes Back Decision on Tapering to November LUNA -3.75% Luna Coin / USD LUNAUSD $ 0.01
$0.00-3.75% Volume 0 Change $0.00 Open $0.01 Circulating 1.71 m Market Cap 11.66 K 1 d Wormhole Launches Solana-Ethereum Bridge to Move NFTs Cross-Chain 1 d Risk-on Assets Recover and Start Rallying After Fed Chair Pushes Back Decision on Tapering to November 2 w Crypto Market Dips and Over 165k Traders Get Liquidated for More Than $890 Million
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.