“Young Male” Bitcoin & GME Investors Setting Up for an ‘Explosion’ in Depression: NYU Professor

“Young Male” Bitcoin & GME Investors Setting Up for an ‘Explosion’ in Depression: NYU Professor

Much like young women “became very depressed by sitting in their rooms looking at Instagram,” said Scott Galloway, who also feels these men staring at their phone watching BTC and AMC price are “not having (enough) sex.”

On one side, we have the likes of the billionaire owner of Dallas Maverick Mark Cuban and Social Capital CEO Chamath Palihapitiya, who are calling what transpired around heavily shorted stocks like Gamestop and AMC as a change in the financial system.

On the other side, we have Scott Galloway, a professor of marketing at NYU Stern, according to whom the matter is much simpler — these retail investors on Reddit are actually “young men not having (enough) sex,” he said. It’s just not related to sex alone, either; according to Galloway,

“We are setting ourselves up similar to how there’s a ton of young women out there who became very depressed by sitting in their rooms looking at Instagram, self-cutting and self-harm skyrocket.”

He goes on to say that this will result in an “explosion” of depression in young males only to add further, “it is going to be reverse engineered to apps that convince you, you’re part of a movement or physically addict you to your phone.”

The Biggest Loss of Capital

Galloway started with his theory on Twitter last week when he explained how:

“Arm young men, in a basement, not at work, not having sex, not forming a connection, with an RH account, a phone, and stimulus, and you have the perfect storm of volatility as they wage war against established players while squeezing the dopa bag, harder and harder.”

He further pushed his theory on MSNBC when he said the “biggest loss of capital” is the loss of human capital of “young men sitting and staring at their phone and watching the price of Bitcoin, or the price of AMC.”

Galloway basically wants these young men to form relationships with people rather than be “the person on the other side of the trade.”

Galloway, who has been around the markets for two decades, went on with, “the arc of the market is jagged and irrational, but it typically bends towards reattaching to the fundamentals,” which puts these stocks “much lower,” so “be prepared to lose 80% to 90% of it.”

“The greatest loss in capital here is from young men who are more prone to gambling addiction, who don’t understand the markets.”

It’s nothing new, he said, noting that hedge funds haven’t played out already. Just an age-old contract of “old men” to “stick it to the man and have young people attack the castle so they can get wealthier.”

Galloway is not alone in this; such attempts have been made by wealthier investors since last week. However, this time, the losses were felt by international investors as well as hedge fund Melvin Capital lost 50% of its investment.

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Author: AnTy

Global Coronavirus Fiscal Stimulus of $8 Trillion with More Coming Up Fuels Crypto Boom

In quarter first of 2020, the US economy is contracting at a rate not seen since the Great Depression of the 1930s. Also, a total of 30 million Americans filed for unemployment claims in just six weeks.

Amidst this, the Federal Reserve printed trillions of dollars to soften the blow of the coronavirus lockdown on the economy. But it wasn’t only the Fed, other major central banks around the world fired up their money printer to print a coronavirus-triggered collapse of their economy.

And this money supply lifted up the price of stocks this month.

But what all this free money that has been created at the fastest rate ever cannot do is keep people from losing their jobs or restore lost production.

This means while the money supply is shooting up, the supply of goods is shrinking. Bruce Ng and Juan Villaverde of Weiss Crypto Ratings noted,

“More and more dollars chasing fewer and fewer goods is the textbook definition of inflation. And as inflation comes roaring back, it’s going to send safe-haven demand for top-rated cryptocurrencies blasting up.”

The authors argue that this excessive amount of fiat currencies supply has been at a time when buying crypto has become easier than ever.

Moreover, while the world is having quantitative easing, bitcoin is preparing for quantitative hardening in less than 10 days.

Becoming a safe haven

In its latest report titled “Quantitative Tightening,” Grayscale Investments also noted that bitcoin is the best bet against central banks’ money printing as unlimited fiat money could result in the debasement of the US dollar. The report states,

“Untenable levels of debt and fears of widespread default are driving the most aggressive monetary policies since Bitcoin’s creation.”

Currently, we are in an environment where government bonds are offering zero or negative yield, fiat currencies are at risk of debasement, and the coronavirus-lockdown highlighted the delivery issue with the traditional safe-haven asset gold.

The options to hedge are limited and according to the largest crypto asset manager, bitcoin is one such option that will go through supply shock this month. It summarizes,

“Bitcoin is showing signs of becoming a safe haven while maintaining an asymmetric return profile.”

The company that reported a record-breaking Q1 despite the crypto prices tanking amidst the global market rout also advised investors to “understand the effects of government monetary and fiscal intervention.”

Bitcoin market participants are also expecting this quantitative hardening to spark a bull run but Charlie Shrem recently said it will happen just not immediately.

During Virtual Blockchain Week, Shrem shared how the halving coinciding with coronavirus “a black swan event” is “crazy.”

Now as people start getting their unemployment benefits while sitting at home and suddenly bitcoin daily supply is going to be cut in half, according to him, all this money could flow into the bitcoin market.

Latest Bitcoin Price News and Crypto Market Updates

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Author: AnTy

How Bitcoin Can Aim at Reducing Global Inequality Across the Globe in 2020

As the global financial depression that crippled the world in 2008 came to an end, a peculiar financial system came to life and is today known as Bitcoin (BTC). During bitcoins launch on 3rd  January 2009, the cryptocurrency’s anonymous founder, Satoshi, said the system is set in place to help bridge the inequality gap that has kept growing through the years. A recent post on Business Insider, explains how the pioneer cryptocurrency can be used to bridge this gap across the globe.

Bitcoin as a Safe Haven Asset

According to the Human Development Report by the UN 2019, over 20% of human development progress was lost due to systemic inequalities in 2018. Notwithstanding, according to the latest reports from the US Census, the middle class is growing thinner as the country faces the worst case of wealth inequality since the records began.

According to economists and financial analysts, the growing demand and popularity in Bitcoin is set to stop the widening gap between the poor and the rich. Mark Yusko, the CEO and CIO of the investment advisory company Morgan Creek Capital Management, said blockchain systems, with Bitcoin leading the charge, will set forth a growing middle class as more investors are exposed to the coin. He said,

“The government and the elites want to have all the wealth, so they manufacture inflation and the wealth flows to the top. And that’s why we have the greatest wealth inequality in the history of mankind. Bitcoin helps solve that because now we can opt out as an owner of assets from that fiat system.”

The transparent, immutable, secure and decentralized nature of Bitcoin allows users to send peer to peer payments without the ridiculous fees paid to banks while increasing transparency in the process.

A Fight Against Inequality in Developing Nations

While Bitcoin reduces the inequality across developed nations through ownership of a safe haven asset, developing nations across Latin America, Africa, Asia and South America benefit in a different way. According to a World Bank report, close to quarter of the worlds population do not own a bank account due to various reasons such as lack of documentation and the inability to access the services.

With Bitcoin, unbanked and underbanked users can easily transact across the network using only their smartphone and a stable internet connection. A number of Bitcoin applications are gaining widespread attention from users in developing nations such as Venezuela, Argentina and Zimbabwe economies that are facing hyperinflation.

Notwithstanding, efforts to educate users in developing countries on the benefits of Bitcoin, is also on a gradual rise. Education initiatives such as DLBRT (Distributed Ledger Technologies Blockchain and Research Technologies) in Kenya have taken a step to educate universities and corporations, opening up over 3,000 Bitcoin wallets to this date in their country.

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Author: Lujan Odera