Believers and sceptics are about to have their theories tested. MoneywebNews crypto bitcoin ether
To cryptocurrency true believers, Bitcoin is the ultimate store of value, the most solid hedge against the rampant inflation manufactured by reckless central banks and their money-printing. To sceptics, the crypto world as a whole is a mirage whose massive run-up past $2 trillion was simply the speculative byproduct of the extraordinary amount of easy cash that’s been sloshing around in the global economy – in effect, a big bubble. Both of those theories are about to face their biggest test yet.
Think of a junk-bond investor who was accustomed to high-single-digit returns even on bad days, said Tawil. “[They’re] going to be forced to put money into something ‘riskier,’ but, more importantly, something that yields something [they’re] used to getting.” So what happens when conditions become tighter? “The initial move is the opposite of what happened when they put the money in – everything’s going to go and swing the other way, until it settles down,” Tawil said.