Regardless Of Whether Modern Monetary Theory Works Or Not Brrrrrrrrr Is Good For Crypto And Crypto Is Too Good To Pass Up

Crypto Being Propped Up By Brrrr

I don't particularly care for partaking in the debate on whether the current fiat monetary system works or not. First of all, as a layperson I'm not qualified to make an independent contribution to the debate. Neither are most people I've seen express opinions about the matter. I've listed to arguments made by the proponents and the detractors of the system. It takes years of study of economics and economic history before it it is possible for anyone to form a fully informed opinion that is not merely repeating arguments formulated by other more knowledgeable people have put forward about the matter that just happen to bolster one's personal prejudices.

But one thing stands out as obvious to me and that is how quantitative easing props up the valuation of cryptocurrencies. That's because QE is primarily done with open market operations where central banks buy assets from the financial markets. Because of the connection between the conventional financial markets and crypto, QE measures also benefit the latter. Interest rates are already very close to zero which is why lowering key interest rates won't do much.

Crypto Is The Closest Thing To UBI That Will Exist In The Near Future

I don't believe we're going to see universal basic income in the near future in most developed countries. Even if the political will were there, re-organizing the current welfare systems to accommodate UBI would be a complex task. But the political will does not seem be there anyway at least for now. Some people have suggested that central banks start financing UBI directly but that seems quite unlikely. Instead, the Brrrr will remain firmly directed at the owners of financial assets.

Cryptocurrencies are tightly connected with the traditional financial markets. Lot's of crypto holders also own stocks and other financial assets. Also, traditional market participants have had ways to gain exposure to Bitcoin for years through ETFs (in some countries) and custody services provided by the likes of Coinbase. But the cryptocurrency space is still an emerging sector where new opportunities for onboarding even without investing any money crop up all the time. Hive is an example of such an opportunity. Rewards on Hive be it in the main token or since very recently in SCOT Tokens like LEO are currently completely outsized relative to the almost total lack of competition between content creators. There is so much money because of the fact that altcoins benefit tremendously from having trading pairs against Bitcoin and Ethereum. If there is anything in existence that effectively works like UBI, it is crypto these days. This is because of the considerable early adopter advantage that just keeps repeating across constantly emerging new opportunities.

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