1. Why are real estate properties inflationary? Because it is built on land and lands are scarce resources.
2. Why are food prices inflationary? Because all crops must be grown on land and lands are scarce resources.
3. Why are gold prices inflation? Because of scarcity in gold supply as it is kept by governments around the world to partially support their fiat currency.
4. Is Bitcoin scarcity? No, because the estimated supply of digital currency amounted to about 1600 and the numbers still growing fast. All digital currencies are homogenous products so there should not be too much of price differential.
5. This is not an advice to buy or sell as my wild guess is as good as your own guess.
2. Why are food prices inflationary? Because all crops must be grown on land and lands are scarce resources.
3. Why are gold prices inflation? Because of scarcity in gold supply as it is kept by governments around the world to partially support their fiat currency.
4. Is Bitcoin scarcity? No, because the estimated supply of digital currency amounted to about 1600 and the numbers still growing fast. All digital currencies are homogenous products so there should not be too much of price differential.
5. This is not an advice to buy or sell as my wild guess is as good as your own guess.
Comment:
6. In old world, we live in debt based society. The bank manager will take our saving deposit and lend out to borrower as mortgage or business loans. This financial structure will favor inflation due to the so called multiplier effects and that economically it will encourage consumer spending and business investment. On the other hand, if everyone started to adopt Bitcoin as their only form of saving, it will turn the new world into a cash based society and banks will run out of saving deposit for bank loans. A cash based society will create deflationary pressure as Bitcoin will be kept in private digital wallet and that will short circuit the multiplier effect. Under this scenario, Bitcoin will turn back the clock and send us back to 1930 when the world's economy was running out of liquidity cash. So the good news is that we will not see Lehman Brothers' mini bonds crisis anymore and the bad news is that we will have to live in a great depression economy forever.
Comment:
7. Schedule of Releases for the Consumer Price Index
Jan. 13, 2021 08:30 AM
www.bls.gov/schedule...news_release/cpi.htm
Note : High CPI figure will spike US currency and put downward pressure on risky assets.
8. Biden has Picked Janet Yellen for Treasury Secretary.
"Yellen was a staunch dove. Much of the research she performed as an academic economist focused on employment. She and her husband, George Akerlof, are both Keynesian economists who believe that economic markets are fundamentally flawed and need governmental regulation to function correctly..." ( src : Investopedia)
Jan. 13, 2021 08:30 AM
www.bls.gov/schedule...news_release/cpi.htm
Note : High CPI figure will spike US currency and put downward pressure on risky assets.
8. Biden has Picked Janet Yellen for Treasury Secretary.
"Yellen was a staunch dove. Much of the research she performed as an academic economist focused on employment. She and her husband, George Akerlof, are both Keynesian economists who believe that economic markets are fundamentally flawed and need governmental regulation to function correctly..." ( src : Investopedia)
