Comment on Everyone's Trying To Get Their Money Out

• FiniteBanjo@feddit.online ⁨2⁩ ⁨months⁩ ago

  $VYM has never risen this much in such a short timeframe, it maintained value in the 2008 financial crash and then last year it gained almost 50% in 6 months. BTC has dropped from 0ver 110K to 70k USD.

  People are realocating their funds to “safe” investments. If people wanted to flee from the stock markets they would reinvest in something foreign or decentralized, which is what crypto has to do with it, but instead that is the opposite of what is happening. If anything, the stock market’s total value is unusually high given recent turmoil.

  Perhaps your confusion has to do with what Private Equity has to do with markets and evaluations? In which case, I don’t have enough time to help you.

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  • just_another_person@lemmy.world ⁨2⁩ ⁨months⁩ ago

    I’m just speaking from the economics of your points here, but people put their money in crypto because they think it’s safe. It’s simply not true by and large.

    They certainly put it in precious metals and commodities that are not tied to any specific market or nation. That’s why Gold and Silver just had historic market performance, but there are no large market shifts towards crypto or speculative financial assets for anything other than a bet.

    Before you start in with the “crypto isn’t speculation” stuff…it is. It has no inherent value, is not tied to real world goods or services, and has no political benefit. This is why institutions, including nation-states start wars over commodities, not crypto. If markets crash, a government can use its gold reserves to pay for things. If interest rates rise, they can use commodities as leverage to counteract negative impacts.

    Crypto has absolutely no use except for people who want to collect crypto. If a World War breaks out, crypto will be useless. You can’t pay for grain to feed your people your Pokemon cards, and you can’t buy raw goods for your production sectors with crypto. It’s just not a thing.

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    • FiniteBanjo@feddit.online ⁨2⁩ ⁨months⁩ ago

      I’m just speaking from the economics of your points here, but people DO NOT put their money in crypto because they think it’s safe. It’s simply not true by and large.

      Well that makes sense because, as you might notice in my comment, people are currently putting their money in what they think is safe and they are NOT putting their money in crypto. BTC has gone DOWN. DOWN means more people were selling than buying. DOWN means they put money somewhere else.

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