A lot of wealthy people are loading up on gold, silver, and real estate, using these as collateral to grab loans which they then throw into crypto.
Leveraging their assets gives them tax perks, plus they get to hold onto their wealth while riding the bull market.
I think in the next year or two, we’ll see real estate prices shoot up along with gold and silver.
And where’s all that cash gonna flow? Obviously into stablecoins.
But when things take a nosedive... banks will end up owning most of the gold and real estate.
One of the reasons for this is that they have understood the reality of physical assets and Bitcoin. As fiat currencies are depreciating, they do not want to go to the risk of depositing fiat because there is no fiat in the world that is not depreciating, that is, their value is decreasing day by day due to inflation. Five years ago, you could have done the work with $10,000, but today you have to spend at least $15,000 to $20,000 to do that work, but if you had bought Bitcoin or gold 10 years ago, you could have done the same work at least twice. The biggest thing is that people now consider depositing fiat as the riskiest.
All that is just an assumption. If you say everything will crash, then that includes fiat currency, so how will the bank benefit?
And in real estate, depending on the location and country, there are countries now where the value of the buildings they build is falling due to the oversupply of them in the location where they built them. The population is not enough to cover the supply of condos that they have built. So it depends on the location, popularity, and population.
For those who use gold and real estate assets as collateral, they are also gambling because they don't really know if they will really make money after a few years; it can still be a nightmare, and they lose even more if they miscalculate what will happen
Are u saying rich will gamble ? Yes but they will get rich!
The prices dont show real supply demand its rigged and there is money just too much to pump all.
Right now we got guys like jeff bezos he will buy crypto soon.
All this doesnt do any good i know that but what can i do its the way how it is
The thing is that the prices of precious metals would not crash at least as there's serious global tension surrounding Trump activities trying to annex Greenland, claiming dominance and we know he's not stopping there. People have seen previous metals as the next safe heaven and are investing seriously into it. Furthermore silver is an industrial metal and it would always be in demand, so it's value tends to increase. They're also not speculative assets but are very less risky assets, so they're good as collateral since they have more stability.
Bitcoin too is another interesting asset, although it's more volatile than precious metals but recently it's volatility isn't much of a concern now and it's expected to reduce further in the future which would see it good for such collateral prospect.
There's a thin difference between the use of physical assets and cryptocurrency, because there's more we have to put into consideration when we talk about what to invest and the how we get the asset secured, it has to be profitable and also decentralized, because because there's more difference to what we can invest being not in full control, than when we take charge of our investment and determine how it runs.
Certainly not a method that is common to most individuals given social status but, its something that could be done and can work. Mind you, its most unlikely that there would be a crash and with that I mean, to find Bitcoin dumpling to a range of $50k ever again but, pending on the time frame this lone is to last, the interest rate on it and just when exactly is this strategy employed might be the real difference between having to loss or make profit.
Its certainly not one without risk though but, using these precious metals as a hedge.
I think you're wrong with this assumption. Stablecoins aren't the ultimate destination; many people use them as a temporary haven for doubt.
And now, if, according to your logic, the ultimate destination of money is stablecoins, what kind of liquidity will drive up real estate prices during a market crash?