Dan on Nostr: What is monetary premium? It is the amount of increase of a price of an asset because ...
What is monetary premium? It is the amount of increase of a price of an asset because the of the publics' idea that it's better to hold an asset that is going up in price, rather than hold the currency that is losing it's purchasing power over time.
If you have $100 in cash, and they are printing 7% more of those each year, it worth 7% less each year.
People see this, and clamor to trade those dollars for anything that appears to do the opposite. The biggest items they trade those dollars for, is real-estate and stocks.
IN the next ten years, the monetary premiums on assets are going away. IT will change the economic world as wee know it. Bitcoin = real money. Since we will have real money now, assets can be assets again without having to double as money, thus driving their prices up unnaturally. I have never been so optimistic for our kids financial lives.
If you have $100 in cash, and they are printing 7% more of those each year, it worth 7% less each year.
People see this, and clamor to trade those dollars for anything that appears to do the opposite. The biggest items they trade those dollars for, is real-estate and stocks.
IN the next ten years, the monetary premiums on assets are going away. IT will change the economic world as wee know it. Bitcoin = real money. Since we will have real money now, assets can be assets again without having to double as money, thus driving their prices up unnaturally. I have never been so optimistic for our kids financial lives.