OPINION: Macroeconomic issues are why David Leibowitz, co-founder of LeboBTC Ledger Group (LLG), is long bitcoin, ethereum, and other crypto.
, was dead and buried, never again to be seen as a safe haven for portfolio investment, positive returns and savings.
And bitcoin? It exploded from a March 2020 low of under $4,000 to a high of $69,000 this past November, before retracing to its current level around $42,000 at the time of publication.It’s now February 2022. The world has been hacked by COVID-19 and its latest variant, Omicron. Many expect this pandemic will be part of our new normal like the cold or flu.
In the past two months, major stock indices have fallen 10% to 15%, led by the tech-heavy Nasdaq. U.S. two-year Treasury note yields have risen some 90 basis points to about 1.55%, and the U.S. 10-year yields have risen 60 bps to about 1.95%. The yield curve has flattened in anticipation of the coming rate hikes.stated
The point is, there is no viable interest rate level that will attract savers to the fixed income markets. At current interest rate levels, and given projected inflation, holding a dollar for 10 years creates a roughly 18% loss in purchasing power, so how does an investor protect oneself? That does not mean that markets can’t sell off. They do, in the normal course of valuation. But given the investable landscape, the downside is limited. With all due respect to British investor and mega-bearThe role of cryptocurrencies in the new normal
Ether, another disinflationary crypto asset, can be thought of as digital oil: a blockchain of blockchains whose use case is a building block for the decentralized world to come. Think of Ethereum as Legos, a toy that became a builder’s model. As decentralized finance grows, as the world of non-fungible tokens expands and as theI do not expect stocks to sell off meaningfully from here and, by implication, I don’t think cryptocurrencies will see an accelerated sell-off from current prices.
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