Friday, January 05, 2018
Cryptocurrencies Vs Quantitative Tightening
The Federal Reserve is implementing its well advertised shrinking of its $ 4.5 trillion balance sheet.At the moment the fed's drain amounts to approximately $ 20 billion per month.At the same time cryptocurrencies of all possible descriptions and functions are expanding their market cap at a faster rate. Lately a new normal month shows crypto's growing $ 100 billion in a month!Looks like a high noon event is shaping up. Will inflation result? Will the demise of the federal reserve and by extension other central banks result? Or will both learn how to coexist? Cryptocurrencies definitely have the appeal of potentially obviating government as we know it. For instance why pay taxes and fund wars if crypto's can subtract one's monetary footprint from tabulation?So what do we do individually? Buy gold? Buy guns? Buy puts on the S&P? Buy calls on the S&P first?