Which would you rather have?
With the dollar likely to experience massive inflation in the future, which would you rather have?
Given the FED's actions and Congresses, where they have decided the only way to save the US economy is to flood it with liquidity, there is a pretty good chance we experience significant inflation at some point.
Yes, the fear currently is stagnation and deflation, but that won't last forever.
Once we get over the hill with this pandemic, things are going to pick up pretty quickly.
When that happens we will be awash in liquidity with only a few real items for that money to go into.
If/when that happens, which of these would you rather be holding?
(Source: https://twitter.com/blockchainmikey/status/1306942525803057152/photo/1)
None of us here are likely to get to that billion dollar number any time soon, but if the dollar loses significant value over the coming years a billion isn't going to buy what it used to.
Looking at an image like that, it seems pretty easy to me which one makes more sense in terms of holding or storing your value.
One you can carry in your pocket while the others you need a forklift to move around.
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It has lasted for 40 years of this deflationary super cycle. So why do you see the trend stopping?
Really? What are those few "real" items? Aren't we seeing more things to spend money upon especially since you point out that things are going digital? For example, music use to be physical but now is digital. What is the potential inflation rate on recorded music?
How about rockets? Are those on the list? What about the internet of energy? Virtual reality? How are things inflating when more of the economy is becoming "as-a-service".
While there could be bouts of inflation in certain sectors due to supply issues, the overall trend will remain deflationary pressure.
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I am talking about houses, stocks, and bitcoin. Yes there will always be more novelties to spend on but I am talking in macro terms.
And you can check the prices of raw materials over the last decade to see that although we have been in a deflationary environment we have seen massive inflation in asset prices. I have seen it first hand in the construction industry. This was all before the US decided it was going to embark on helicopter money instead of parking money only on bank balance sheets. Helicopter money will have a great impact on asset prices than the latter.