Bankless Did Macro Kill Crypto? with MacroAlf
17 snips
Nov 1, 2022 Join a deep dive into macroeconomic trends and their effects on the cryptocurrency landscape. Discover how risk acceptance among investors is crucial for crypto's recovery. Explore the transition from a liquidity boom to a cyclical slowdown, impacting both traditional and crypto assets. Learn about the implications of monetary policy shifts and bond market volatility. Plus, hear insights on Japan's economic lessons and the importance of productivity growth in navigating financial uncertainties.
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Macro Trends and Cycles
- Macro involves long-term trends and cycles interacting with those trends.
- Currently, a cyclical slowdown dominates, contrasting with 2020-2021's rapid money expansion.
Two Tiers of Money
- Two types of money exist: money used by individuals/corporates and financial money used by institutions.
- 2020-2021 saw both increase drastically; now, both are contracting.
Lagged Deflation
- Inflation's lagged effect after money issuance suggests deflation will also lag.
- Deflationary environment expected throughout 2023 and beyond due to tightening.
