Why is crypto crashing today - Cryptodroper Blog

 Why is crypto crashing?

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Bitcoin will be by far the best asset, physically, dynamically, mathematically above all other but the powers that be with the largest armies, the biggest balance sheets and all the political power they will fight.


They will fight till death


It's really interesting time we're living in lots of things are happening, big things and well, one of the things, of course, is the quantitative easing, the printing of money, the stuff that's happening in the US with the $3.5 trillion bills that are introduced and the money that's needed for that and the world is drowning in money every



There is a new problem in the social aspect could be covert relief in the banking sector, in some other sectors. The only solution seems to be money printing. And if that were the solution, of course, Venezuela and Zimbabwe would be the richest countries in the world.


It is not the solution. It will make the problem worse. But what we see, of course, as a consequence, is lower interest rates. The negative interest rates in Europe persist, even go down a little. So that is an unheard of situation.


Bitcoin fear and greed index

We've never seen that a couple of years ago and we've seen asset prices rising and rising and rising. I don't know how it is in the US, but in my country, the Netherlands and also other countries in Europe, the rising housing prices are really getting problematic.


It's nice if you're the owner of the house because you can almost stop working and just refinance the house every year with the increase in value and people that don't have the money or the start capital and that's most more and more people, they can't buy a house, they have to rent a


But rents are going through the roof


It's such that people cannot get away from their parents houses and get into big troubles with their finances because the houses are so high and now they're all making measures for the taxpayer, so taxing house owners, etc.


And as if that were the problem. No, the problem is the money printing and all that money has to go somewhere. Equities real estate, Bitcoin gold. Well, the asset, the asset inflation. And now that asset inflation is, of course, spilling over in consumer prices, energy prices.


Why crypto market is down today

First, of course, and it will go down to core inflation as well. Core inflation is the inflation basket without the energy prices. That's the volatile component in the inflation index. And the core inflation is what central banks are tracking. That will go up as the last thing that's going up. But yeah, everything is going up.


I mean, it must be different in the US as well, but in Europe, so winter is coming, right. Heating prices, oil, gas, electricity double at the moment. So households are going to pay double the gas and electricity prices next


And that will certainly cause problems


And then if we look geopolitical, it's very interesting what's going on with China and the US at the moment, I think it's ever gone. The thing in China, with the real estate debacle going on there, the US bashing China.


It's all started with the terrorists, of course, the trade tariffs under Trump, but it goes on and on. And China, of course, looking at Taiwan now, after it took Hong Kong, those are big movements. And the South Sea situation militarily. It's all very volatile.



And you need one match to light the whole thing up. It's scary in a way. First, from a logical point of view, if printing money was the solution for these problems, then like I said, Zimbabwe would be the richest country in the world and every country would be doing it.


And of course, that's not true


And through the ages as well, the Roman Empire died in part because of the debasement of the currency, the printing of the money was the area at the time. So the silver content was diminished from 90% to



And that caused big troubles because nobody accepted that money anymore because it was like monopoly money. So that's one. But on the other hand, the depth that the US is creating to keep the dollar going, to keep the government going, to keep everything going and the same in Europe, by the way. But the US, of course, the reserve currency, that depth is someone else's asset. The asset can be in the pension fund. It can be, well, most of your debt, by the way, is owned by China, right.



So that China is making all this stuff for the world, for the US earning a lot of money. But then parking that money in the treasury bonds. So in the depth of the US government and that debt, of course. And we all know that. Right.


All institutional investors know US debt will never, ever be paid off. We all know that. But we also know there will be new debt. There will be an extra credit card, if you will, to pay off the old credit card. And as long as that goes on, that's all


But it cannot go on.


It requires rates to keep going down


If you would increase the interest rate right now, the debt would be unserviceable. The US could not pay the debt when interest rises with the current tax income. So it's unsustainable. They have to keep rates low and keep decreasing them or the whole house of cards will fall down. And of course, China sees that as well.


Because imagine that you have all this US debt and you see that the debt is printing his own money and you know it will be worth this one day.


So what will you?


You'll spend it like a madman and you see them doing that. They buy every gold mine, every scarce commodity mine in Africa. They buy all the harbors in the Middle East, in Europe, even they buy everything with the US dollars.


That they have, except more US depth, of course. And that's the smart thing. So by printing and printing more, the US is actually making China stronger and stronger every day. I'm sure the military thinkers and geopolitical thinkers will see that, but there is no alternative. So they have to keep doing it.


And while Europe is in the middle, we're watching it happen. It's a crazy


We're watching your statement there that they have to keep doing this is most of it because you got into the government reasons of why they can't allow interest rates to go up, because then it's not serviceable, but even at the individual level.


If interest rates on home prices go from three to four and a half percent, like you have just obliterated your common person where most of their net worth, you go to your typical person. I don't care if it's American or somebody over in Europe, anywhere in the world.


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