It will be interesting to see whether central banks really manage to keep asset bubbles from crashing forever. I tend to agree with Harry Dent on that crashes can and will happen once the investors get jittery enough. Long bull runs make people complacent. That's basic psychology. Then a crash hits seemingly out of nowhere.
Dent is also right when he says that Bitcoin is no inflation hedge but a nascent technology that he compares to technology companies as an investment. That's how the crypto asset prices move. They offer the greatest upside during a general bull market but crash the hardest during a bear market.
With all that said, predicting the timing of a general equity crash is far from trivial. I will be watching things very closely with all of my profits from crypto investing in the last year sitting on the sidelines.
I wouldn't be surprised to see a correction in S&P 500 as well.
I think crypto investors would be smart to pay more attention to the rest of the economy. Crypto is no longer in the hands of pioneers. It's very much tied to the rest of the financial markets with all the institutions involved.
The interviewee criticizes central banks for taking up the task of preventing recessions. He stresses the importance of recessions as a way to clear the economy of bad companies, bad debt and bad investment. I think he's onto something important. We haven't seen too much new technology adoption in the last 20 years as Taskmaster says while predicting a much greater pace of adoption in the next 20 years.
Dent appears to have a clear vision for the crypto space as the internet of financial assets and a really huge deal 20 years from now completely dwarfing the baby bubble we're in now - and by that I think he means the decade-long run it has had so far.
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