Sirwin
Sirwin

Unpopular Idea: Crypto is a Weapon to Push Stock Markets


Fundamentally, the crypto ecosystem is seen as a sign of freedom of speech, money, and people's lives. The projects on blockchains have been designed to provide people with opportunities to "liberate" themselves from the corrupted systems in the world. The free soul of crypto might be one of the most important narratives for many enthusiasts.

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Though the firm foundation of crypto sounds motivating, there are some minority groups believing that the existence, and the popularity of the crypto ecosystem, can be related to the role of the crypto ecosystem in the market. According to this underrated belief, crypto is assigned another role in the global monetary system.

Let's discuss this point of view in more detail:

Crypto: Risk Appetite Booster

The strongest side of this belief might be the output that we get from the attention on crypto and the effects of it on the global markets. When there is more interest in the crypto ecosystem, which happens when global risks such as wars, inflation, and interest rates do not exist, the ecosystem might be among the top narratives of the markets if they are stuck at some vertical zones in a consolidation.

Remember the fact that the crypto ecosystem is also seen as a part of new technology. So, the advancements on this side have a direct impact on the side of the value of technology companies' shares. Of course, crypto has some correlation with the other markets especially when we think about the times of Quantitative Easing and Quantitative Tapering terms. However, the claim is much stronger.

  • Crypto pumps hard like 10x 30x but the stock markets do not

  • When the stock market investors hesitate buying more shares, the crypto's performance may push people take more risks

  • Profits realized in crypto might be the capital investment for stocks

Governments Want / Need Crypto

There are several reasons to see crypto as the booster of stock markets. Also, this ideology claims that U.S. or China do not kill crypto as it can be used for purpose and that makes a lot sense when we think about the negative news bombardment at ATH in crypto whereas positive news that we see these days.

The reserve thinking is a perfect practice for crypto's existential queries. First of all, the stock markets are very old school and obsolete. While the world is awake 7/24, there is no way to accept the market that works only for a certain amount of time on weekdays and off on the weekends.

This system cannot eat the large amount of money printed weekly. There should be a place where people may lose money while sleeping or they should take extra risks (leverages up to 50x - 100x) so that the inflating money system can work flawlessly.

Crypto is a perfect weapon to help stock markets survive, to suck up the liquid money flowing around the world and push people to take risk under the name of investment (!)

These claims are pretty interesting and I give some credit to them from time to time. The markets are controlled by trading bots and the bots are owned by some "giants" that we do not know. Crypto is a powerful tool to utilize from technological, sociological, and psychological sides.

What do you think about this unpopular idea? Share your thoughts below 👇

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idiosyncratic
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