What do these new people getting rich off crypto mean to the economy at large?

[audaciousbeing]

I apologize if this question is in any way naive.. I'm not really any kind of economics expert. I was just wondering what might happen to the world economy since there are so many new people getting rich off these cryptocurrencies... Just based off speculation or holding the right coins a lot of people have gained in wealth in the past years. And it doesn't seem to be slowing down.

So, you have a lot of 'new money' propagating even 'newer money'... and so on and so on, until a lot of people are pretty rich. Does this mean that there is a huge depression ahead of us? Surely just making more and more money can't go on forever, can it?

I'm sure I'm not seeing the big picture here so please, could someone explain it to me?

I believe its just new sets of Millionaires that is being made while those who are made already before venturing into bitcoin have to contribute marginally to the economy of their respective countries. Also, I see that not every one is getting rich at the same time because in the real sense, just like trading, its a zero sum game while some are making money and others are losing money and at the end of the day, summing up everything together means there is really no change whatsoever in the overall economy. So depression is not anything close to us.

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[MRlong]

I apologize if this question is in any way naive.. I'm not really any kind of economics expert. I was just wondering what might happen to the world economy since there are so many new people getting rich off these cryptocurrencies... Just based off speculation or holding the right coins a lot of people have gained in wealth in the past years. And it doesn't seem to be slowing down.

So, you have a lot of 'new money' propagating even 'newer money'... and so on and so on, until a lot of people are pretty rich. Does this mean that there is a huge depression ahead of us? Surely just making more and more money can't go on forever, can it?

I'm sure I'm not seeing the big picture here so please, could someone explain it to me?

We should remember that the rich are taxed very heavily,some pay as much as 50% tax so its good news for the economy of the world, there will be more for the country and the cycle of life will just continue.

Rich people are taxed by government so by investing in cryptocurrency they can save they money by just putting it in crypto because the bitcoin is decentralized so that I think many big people now are investing in cryptocurrency because they are free from the tax. I think I will do that too.

In future, the government will find ways can tax cryptocurrency because they always want control crypto, maybe if can't do that, they will released a digital cash use technology blockchain for national bank and use as currency important after FIAT

[infofront]

Every major technological revolution creates a new generation of millionaires/billionaires.

This one is unique in that it will benefit everyone. In fact, the very poor may benefit from Bitcoin the most.
Bitcoin will greatly reduce monetary friction. For instance, it greatly reduces the cost of sending money internationally.
Bitcoin will ultimately spell doom for the "old world" monetary system we currently use. No longer will we all be taxed by central banks in the form of inflation.

[Yakamoto]

I apologize if this question is in any way naive.. I'm not really any kind of economics expert. I was just wondering what might happen to the world economy since there are so many new people getting rich off these cryptocurrencies... Just based off speculation or holding the right coins a lot of people have gained in wealth in the past years. And it doesn't seem to be slowing down.

So, you have a lot of 'new money' propagating even 'newer money'... and so on and so on, until a lot of people are pretty rich. Does this mean that there is a huge depression ahead of us? Surely just making more and more money can't go on forever, can it?

I'm sure I'm not seeing the big picture here so please, could someone explain it to me?

Basically everything is set for a massive recession due to poor wages, poorer people, everything shooting up in cost (well beyond inflation), housing bubble caused by "starter homes" being bought up by boomers and turned into expensive flip properties or rental properties resulting in money being thrown away into bank accounts that will never move. Student loans are also a major thing here.

Same thing is happening in crypto; old money is buying in, causing those with a vested interest (new money) to gain value and take money from the average money individual.

Basically put; everything is propagating a bubble and it will be much worse than 2008 at this rate. New money just pushes everything up. If they get value at the bottom of the barrel during the next recession, then they will walk away with a lot of value. If they just invest now, they're making a bubble that'll just have a bigger pop.

[deisik]

Every major technological revolution creates a new generation of millionaires/billionaires

This one is unique in that it will benefit everyone. In fact, the very poor may benefit from Bitcoin the most.
Bitcoin will greatly reduce monetary friction. For instance, it greatly reduces the cost of sending money internationally.
Bitcoin will ultimately spell doom for the "old world" monetary system we currently use. No longer will we all be taxed by central banks in the form of inflation.

I think along the same lines mostly

Though it is not so much about major technological revolutions but just about any significant breakthrough in a certain filed that creates a new pack of wealthy people. That said, I still don't think that Bitcoin belongs to this department. How come? People that got rich via Bitcoin basically didn't do anything at all. First, they were lucky to buy (mine) Bitcoin when it had been cheap and then sell it when it had become dear (or they continue to keep it). This simply cannot be compared to all other billionaires like Larry Page, Sergey Brin or Mark Zuckerberg (and their likes). All these people put enormous amount of time and effort into their businesses unlike Bitcoin nouveaux riches, who were just sitting idly. The bottom line is that most new Bitcoin millionaires (not sure about billionaires, if there are any) will likely lose their new wealth as fast as they acquired it. Even if they don't outright lose it, they will just eat it away eventually

[cafucafucafu]

I apologize if this question is in any way naive.. I'm not really any kind of economics expert. I was just wondering what might happen to the world economy since there are so many new people getting rich off these cryptocurrencies... Just based off speculation or holding the right coins a lot of people have gained in wealth in the past years. And it doesn't seem to be slowing down.

So, you have a lot of 'new money' propagating even 'newer money'... and so on and so on, until a lot of people are pretty rich. Does this mean that there is a huge depression ahead of us? Surely just making more and more money can't go on forever, can it?

I'm sure I'm not seeing the big picture here so please, could someone explain it to me?

Well there is one thing that is definite. Banks are panicking because they can't control people's wealths anymore. And the central banks are forced to regulate the market because they can't just stand there and wait for the takeover.

People getting rich off crypto means that they are able to have their own assets, away from the prying eyes of the government. No longer does the government have the ability to debase the currency that you hold in your hands. That's the beauty of BTC.

Though there is still an extremely small amount of people using bitcoin compared to everyone on Earth, so until mass adoption this is really just a small dent in the economy.

[dazbog835]

No longer does the government have the ability to debase the currency that you hold in your hands. That's the beauty of BTC.

But is this sustainable? Won't governments inevitably find a way to govern crypto?

[HashieNewb]

No longer does the government have the ability to debase the currency that you hold in your hands. That's the beauty of BTC.

But is this sustainable? Won't governments inevitably find a way to govern crypto?

Well, if people within the Government find a method to make all the Internet servers and other electronic items to not work anymore then Bitcoin will survive through most of the disasters out there.
Bitcoin not being controlled by the Government is good, if Bitcoin was not built by the Government lol

[dazbog835]

well, i meant tax, not necessarily govern. surely taxation will come, and legislation.

this buy-dump era can't go on forever, right?

[syaripudin]

I do not think so because the rich people in general are not originated from bitcoin. Usually initially they are someone who had a wealth. So before they jump in bitcoin world initially they already have enough capital. Like investors in bitcoin yangmereka Start and have had the capital before .. so I'm not sure what you say.

[Kevin77]

I do not think so because the rich people in general are not originated from bitcoin. Usually initially they are someone who had a wealth. So before they jump in bitcoin world initially they already have enough capital. Like investors in bitcoin yangmereka Start and have had the capital before .. so I'm not sure what you say.

No there are common people who have bought bitcoins and still holding for years and will become richer in near future but I do not think it will not impact economy in negative ways in any any dimensions. Because we do see on every revolution there ever some people found their fortunes and it does not impact the balance of normal people.

Yes, bitcoin boom will bring many new millionaires and it may lead to larger economy still it will work in positive way for entire humankind so we never need to worry on this.

[Anegg]

I apologize if this question is in any way naive.. I'm not really any kind of economics expert. I was just wondering what might happen to the world economy since there are so many new people getting rich off these cryptocurrencies... Just based off speculation or holding the right coins a lot of people have gained in wealth in the past years. And it doesn't seem to be slowing down.

So, you have a lot of 'new money' propagating even 'newer money'... and so on and so on, until a lot of people are pretty rich. Does this mean that there is a huge depression ahead of us? Surely just making more and more money can't go on forever, can it?

I'm sure I'm not seeing the big picture here so please, could someone explain it to me?

I think that not a lot of rich people have invested in Bitcoin, but people do become rich after investing in Bitcoin. After some research, I found that only 1 millionaire revealed that he had invested in Bitcoin. I think that Bitcoin provides an opportunity for someone to completely change their economic status without doing something illegal. Bitcoin is the red pill and you would think so if you have seen a number of millionaires Bitcoin has made.

Don't think huge depression will be ahead, only a select few members of the society has invested in bitcoin.