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Expansive monetary policy has happened in many places around the world, Europe, UK, Japan - not just the US. https://en.wikipedia.org/wiki/Quantitative_easing h
by dharma1 9y ago
Expansive monetary policy has happened in many places around the world, Europe, UK, Japan - not just the US. https://en.wikipedia.org/wiki/Quantitative_easing https://en.wikipedia.org/wiki/Quantitative_easing
It's curious that something that was done as a measure to alleviate the effects of a previous crash is creating another bubble and (probably) another eventual crash.
My guess is the explosion in money going into cryptocurrencies is partly because of that - more loose capital chasing gains - but there are other reasons behind it too. It's a combination of things. Genuine excitement of something new and potentially transformational, desire to move assets away from places they are at risk of being seized (China), FOMO, promise of Lambos, disappointment in the traditional financial system by young people, many reasons.
People get excited when something goes up quickly, and it's been very easy to jump on that speculative train in the case of cryptocurrencies.
- sp527 9y agoI’d argue most of the run up in the last year is driven almost purely by price, with people embracing and then purveying the ‘Bitcoin story’ because it helps rationalize their decision and not because they necessarily understand or believe it. The funny thing is how said people often then come to genuinely believe they believe or understand Bitcoin, when in reality they’ll scatter at the first sign of a major correction. In fact, increasing conviction about an outcome after a person has paid money to bet on it is a well studied cognitive bias.
- dharma1 9y agoI think it's a mix of different reasons.. I think there is a correlation between events in North Korea and trading volume in South Korean exchanges too