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Considering that cryptocurrencies are still treated more like high risk speculative bets than currencies, it seems like gold would be the main beneficiary of an

Considering that cryptocurrencies are still treated more like high risk speculative bets than currencies, it seems like gold would be the main beneficiary of an across-the-board collapse of confidence in fiat currency? The price of gold has gone up a bit during the crisis, but nothing close to the increase in M1. So it would seem that markets are indeed sticking with fiat currencies in spite of the huge supply expansion...

viklove 6y ago
Markets aren't sticking with fiat currencies, they're buying up stocks like there's no tomorrow. Asset inflation is a very real thing.
- danenania 6y ago
  I agree that asset inflation is an inevitable consequence of money supply expansion. I just don’t see any indication that we’re headed toward a fiat collapse. Markets might not be choosing fiat currency for a store of value, but they’re still apparently choosing it for a medium of exchange.
  - viklove 6y ago
    They're not "choosing" it, it's literally their only option. If I want to trade my ETH to GME shares, I have to convert it to USD in between. What this will do is erode faith in the USD. If demand for cryptos, for example, stays the same, but suddenly everyone has more $$$ to throw around, crypto will keep skyrocketing in value while the USD buys less and less of the things people actually need. At that point there will be runaway demand for crypto because people will start "believing" it's more stable than the USD.
    - danenania 6y ago
      Yeah, that’s my point: it’s the only option, except maybe for gold. And gold is only going up a little. So how could fiat currency be collapsing? Crypto may be seen as an alternative in the future, but right now it’s all over the map. No one is using it for their savings account (or checking account, for that matter).
      - viklove 6y ago
        Where can I buy stocks for gold? Honestly though, a crypto-based brokerage probably isn't too far off. Might even be a billion dollar idea.

viklove 6y ago

Markets aren't sticking with fiat currencies, they're buying up stocks like there's no tomorrow. Asset inflation is a very real thing.

danenania 6y ago
I agree that asset inflation is an inevitable consequence of money supply expansion. I just don’t see any indication that we’re headed toward a fiat collapse. Markets might not be choosing fiat currency for a store of value, but they’re still apparently choosing it for a medium of exchange.
- viklove 6y ago
  They're not "choosing" it, it's literally their only option. If I want to trade my ETH to GME shares, I have to convert it to USD in between. What this will do is erode faith in the USD. If demand for cryptos, for example, stays the same, but suddenly everyone has more $$$ to throw around, crypto will keep skyrocketing in value while the USD buys less and less of the things people actually need. At that point there will be runaway demand for crypto because people will start "believing" it's more stable than the USD.
  - danenania 6y ago
    Yeah, that’s my point: it’s the only option, except maybe for gold. And gold is only going up a little. So how could fiat currency be collapsing? Crypto may be seen as an alternative in the future, but right now it’s all over the map. No one is using it for their savings account (or checking account, for that matter).
    - viklove 6y ago
      Where can I buy stocks for gold? Honestly though, a crypto-based brokerage probably isn't too far off. Might even be a billion dollar idea.