Many of you wonder why markets are rallying so much.

Why has #Bitcoin 10xed in 10 months?

Is Tesla really worth $800 billion now when it was $70 billion a year ago…

How are people making so much #money? 🤑

There is a simple reason for it... (1/4)
Due to #COVID19, the Fed and other central banks pumped an insane amount of money in the system.

Simple calculations from the Fed’s balance sheet show that 1 USD in Jan 2021 is worth 40% less than 1 USD in Jan 2020.

1.00 USD2021 : 0.59 USD2020

But wait, there's more... (2/4)
Central banks pumped the markets like never before.

Due to this, investors and companies gained confidence about economic recovery.

So, more and more money started entering the financial markets...(3/4)
The excitement and financial opportunities are attracting retail. Every Tom and Harry has a brokerage account these days.

So, although markets are rallying, the real value of financial markets is far lower than what it seems…

Just some food for thought... (4/4)

#money #crypto
You can follow @IamBitmannn.
Tip: mention @twtextapp on a Twitter thread with the keyword “unroll” to get a link to it.

Latest Threads Unrolled:
Those who think consciousness raising & movement building are disconnected, or even a distraction from electoral politics have not paid attention to the history of social change.In this thread, we
Read more
The 2020s will be known as the Remote Work decadeA few predictions of what is likely to emerge[ a thread ] Third Space: Office and Working from Home will
Read more
1/29: Have you ever had a concept explained to you that helps frame complex issues you’ve been wrestling with and opens your eyes to new possibilities? A concept that I
Read more
By continuing to use the site, you are consenting to the use of cookies as explained in our Cookie Policy to improve your experience.