We are just about to find out, I fear. The federal unemployment 'boost' has expired and rent assistance and eviction protection expire tomorrow. Unemployment is back on the rise and a whole bunch of people in the 'middle' used invested money to get by. It really looks to be ugly from where I sit.
This is happening in Australia too. In Finland, I am not sure how much was spent on this, but I have a feeling that it was less per capita.
It had to be scary AF but they had that cushion at the very last.
This is how I see it. I will see rockbottom, feel rockbottom, but not have to touch rockbottom.
It's got to be pure profit taking and that isn't sustainable.
The collapse is going to be mammoth. I would suggest that some percentage of the profits will ove into new stores of value - to "protect" it from reach.
I think you could be right, particularly from the 'near top' and middle. I think there will be a 'correction' where a whole bunch of fiat disappears from the supply. People will realize that (and mammoth inflation) are both possibilities that might be mitigated in crypto, and probably more so there than anyplace else.
I think there is going to be a severe human cost, AND a severe monetary cost to the entire nation.
The thing with the rich is, they spend cash on generative assets - and who they buy it from spend that cash on consumables.
It is going to be global. The human cost is going to be immense.
If there is hyper inflation just 'holding spot' might seriously be considered 'generative'. I'm sure at least some would see it that way some would see precious metals rather than crypto as the answer.
In my particular case I'm hoping for devaluation not inflation. Much of my income is fixed. In hyper inflation I'd be left sucking wind.