Capital Wars and Crypto Doctrine I
The money power preys upon the nation in times of peace and conspires against it in times of adversity. It is more despotic than monarchy, more insolent than autocracy, more selfish than bureaucracy. Abraham Lincoln (Attributed, purportedly from a letter to Colonel William F. Elkins [November, 1864]
Financial Markets Vs Rich and Poor
Watch out! According to world bank data, the global stock markets between 2000 to 2018 grew from $30.9 trillion to $68.7 trillion (more than 222%) while the expansion of the real economy cannot catch that same figure. This is the first imbalance, like our life and work.
Also, the gap between the Rich and the Poor are getting obviously larger. This is not from Mr. Trump or other another one single country or one person. This seems like a wave of the world, more like a seed already grown many years ago. Income inequality has roiled most countries’ society and politics for years, no matter right-wing populism and the emergence of nationalist leaders like Donald J. Trump, and pushing the Democratic Party leftward, this problem is still there and grows up until we cannot ignore it. People have to sheer find their way out. From a macro view, the trade war or the conflicts might be tactics way, not a strategy or core. like people, when a national financial book gets ugly, they also need to find their way to Rome. So capital wars are always there, such as Falklands War in 1982 — first American financial markets hit three out-of-the-house home runs.
When governments do the QEs, they already risk the true value of money aiming at exchanging the financial prosperity. If someone asks for more and also asks for the powerful and supportive price, then USD index seems to be a ‘watchdog’ for us to observe the wave of capitals and also the wars between currencies.
Investors getting high
We observe the financial behaviors that if people watch the fundamentals more, the more they gain (take the example of the Chinese stock market). So in this market, people need to learn how to ignore the white noises for the alpha.
But for the crypto world, we focus more on the ‘hot money’ to make a prediction about fundamentals. Use this fundamental to evaluate the prices of different tokens. However, this market has more noises. Theoretical speaking, it’s easier to make money. For the small market value tokens, market maker seems to be the private key.
From the beginning of 2020, bitcoin has to be seen as gold from risky asset and then US stock highly relevant assets and then its unique market which from my own thought, this is the right way to go. But money no matter it’s fiat or crypto, no matter EUR or USD, smart money always flow into the area where can bring benefits for their own investors.
With US printing money(the total asset $0.4 trillion to $0.7 trillion in 3 months) and flow them into the market directly also some other countries, it’s investors’ time like fancy bubbles and fleeting daydreams. The global monetary system is holding us hostage and eating our wealth not the amount of our money… We could also see the trajectory very clearly from the craziness of gold price and also JPY for safe-haven and also the craziness for like crypto market and also stock market without real economic fundamentals.
As history’s clock has swept forward, business branding loves to show their multiplicity and open- minded to embrace the new digital world. When we do the investment or we explore our value, we need to find our own Rome.
The description of bitcoin seems to bring us a utopia, but the humanity in Utopia utopia or the main players still remain unchanged. Let’s not talk about the big picture the overall picture, just from the perspective of digital currency/ tokens, we should focus on the scope of its utility just like ETH. Since the beginning of 2020, the expectation of Ethereum 2.0 has been promoting the demand. The optimism surrounding De-Fi and Ethereum 2.0 eventually brought trading records and open positions to new highs in the ETH spot and options markets.
For the asset or money depends on different definitions from different institutions, decentralized doesn’t equal to deregulation. I just hope the crypto world won’t be a new tool for some important people’s reinforcement. waving a sickle. Also, the crypto doctrine is that to put the tech into reality, solve the real problems like pasteurization- simple but change our life for good and then make tokens or crypto currencies into real utility. If so, every revolution or risk is an opportunity and also a chance for the two imbalances mentioned to break through the impasse or we are already on the dangerous stretch of road pushed by the solidified system.
Hey, at last please read this:
The bulk of the content is based on the subjective thoughts and robust analysis with personal consideration. None of them can be an investment advice. Any investment has its risk.