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This is not even a joke. Crypto has absolutely helped absorb the inflation.

IAmGraydon 5y ago
No, it hasn’t. As money spirals deeply into inflation, crypto holdings and equities will have to be liquidated so that people have money to live off of. This will only feed into the inflation more. Investments haven’t absorbed inflation. They’ve delayed it slightly.
- Supermancho 5y ago
  > No, it hasn’t. ... They’ve delayed it slightly. So it has, by your own admission. You predict a worse eventual outcome, which is not insightful. When this will all end badly is the question, not if. Rome lasted a good long time playing these games.
- cgio 5y ago
  You can assume some stickiness on investment decisions. If people end up panic liquidating it would on the one hand deflate crypto on the other indicate lower demand.
- tharkun__ 5y ago
  If 10000 people buy bitcoin at 60k per coin as an investment and later have to sell at 10k per coin to make ends meet, I somehow doubt that the guy that pocketed the difference will contribute to inflation as much as the 10000 guys trying to put up a meal for tomorrow. It feels like saying Elon Musk will make make your next stop at the grocer's more expensive, because selling his 10% of shares for $20 billion will contribute to inflation because of all the stuff he's gonna buy with that money.
  - GoOnThenDoTell 5y ago
    Unlike most billionaires, we have a fair idea of what he’s going to buy with it: more employee wages in companies like SpaceX I wonder about the price of real estate in Brownsville though
    - jjeaff 5y ago
      I don't think Elon has actually spent or loaned any of his own money to Tesla or space x. Maybe in the very early days, but not now.
garmaine 5y ago
For every person buying crypto there is someone selling.
- medvezhenok 5y ago
  Yes, but the marginal propensity to consume matters here. If it’s an average person buying Bitcoin from a millionaire (or many such average people), it acts as a liquidity sink (since the millionaire has lower marginal propensity for consumption)
- mensetmanusman 5y ago
  No, there are new ICOs with trillions of coins minted every month. It’s the FED injecting cash into newly minted monthly ‘stable coin’ wallets. Can’t wait to see the documentaries on the overnight millionaires who set up fancy ICO websites during the pandemic :D

No, it hasn’t. As money spirals deeply into inflation, crypto holdings and equities will have to be liquidated so that people have money to live off of. This will only feed into the inflation more. Investments haven’t absorbed inflation. They’ve delayed it slightly.

Supermancho 5y ago
> No, it hasn’t. ... They’ve delayed it slightly. So it has, by your own admission. You predict a worse eventual outcome, which is not insightful. When this will all end badly is the question, not if. Rome lasted a good long time playing these games.
cgio 5y ago
You can assume some stickiness on investment decisions. If people end up panic liquidating it would on the one hand deflate crypto on the other indicate lower demand.
tharkun__ 5y ago
If 10000 people buy bitcoin at 60k per coin as an investment and later have to sell at 10k per coin to make ends meet, I somehow doubt that the guy that pocketed the difference will contribute to inflation as much as the 10000 guys trying to put up a meal for tomorrow. It feels like saying Elon Musk will make make your next stop at the grocer's more expensive, because selling his 10% of shares for $20 billion will contribute to inflation because of all the stuff he's gonna buy with that money.
- GoOnThenDoTell 5y ago
  Unlike most billionaires, we have a fair idea of what he’s going to buy with it: more employee wages in companies like SpaceX I wonder about the price of real estate in Brownsville though
  - jjeaff 5y ago
    I don't think Elon has actually spent or loaned any of his own money to Tesla or space x. Maybe in the very early days, but not now.

garmaine 5y ago

For every person buying crypto there is someone selling.

medvezhenok 5y ago
Yes, but the marginal propensity to consume matters here. If it’s an average person buying Bitcoin from a millionaire (or many such average people), it acts as a liquidity sink (since the millionaire has lower marginal propensity for consumption)
mensetmanusman 5y ago
No, there are new ICOs with trillions of coins minted every month. It’s the FED injecting cash into newly minted monthly ‘stable coin’ wallets. Can’t wait to see the documentaries on the overnight millionaires who set up fancy ICO websites during the pandemic :D