Ouch. There is something that has been puzzling me more and more. When now 100's of Billions of dollars leave the crypto space within hours, where does it go? If it went to Tether or any of the stable derivatives it would still be in system, right? Does it necessarily happen through the exchanges?
So, it goes through the banks all over the world into the local currencies then, in fact that's where it came from! They wreck the late-comers who paid high prices for everything and now they are shaking them out.
I'm just reflecting on this, what say you crypto-investor?
When crypto leaves the market place, it goes into the national currencies. USD, EURO, AUS, CAD, Pound...
In theory, it would create an upward pressure on those currencies to be valued higher, but the net effect is negative toward all national currencies, since for the price to rise in the first place, those currencies had to be sold against BTC/ETH/ect.
Once in a national currency it can go a lot of different places, since a lot of it floods into individual bank accounts, my approximation is it redistributes wealth. Institutional money has been following the crypto investors into the marketplace, paying a premium for what we've been holding onto a while.
Yes the beauty of it is the early adopters get a nice payday.
But HUNDREDS OF BILLIONS OF DOLLARS WITHIN HOURS ! Hello, the banksters have definitely arrived. These billions don't come from some near-do-well hippies and libertarians living in their parents' basements. True there are wealthy stock brokers and other smart money participating but many people cannot even get small potatoes of their fiat back out of crypto due to the currency controls we find at every step. Certainly this is very big money coming in and out in the hundreds of billions!
Again the beauty of it is that it's very hard to shake out people who originally got in at much lower prices.
Unfortunately, if you have been seeing social media, the profits are going into the Lambos of some lucky people who have been in the space only for speculation and not to support the overall mission of achieving decentralized alternatives to the financial markets. Not saying it all that but I am sure that is a large part.