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by repomies691 3134 days ago
It might also be that the central banks are printing money like hell, and people look for places where their value stays better.

For example ECB (european central bank) is issuing 60 billion euros new money each month, and buying bonds with it. That is half of the bitcoin market cap.
1 comments
pas 3134 days ago
The ECB QE program keeps bond yields down (especially long term [riskier] ones), thereby pushing "interest rate" down, which has an inflatory effect. Now, the CPI in the Eurozone is about 1.3% now http://ec.europa.eu/eurostat/web/hicp/publications/news-rele... .. and it was about 0.5% last year: https://pbs.twimg.com/media/C5v91Y9WQAEyM0j.jpg

Yes, this drives bank savings account rates down to nothing, thus people are looking for better "investments".

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standupstandup 3134 days ago
CPI is fairly useless anyway. It ignores where the huge money displacements are actually going: hint, not bread and circuses. The money the ECB is displacing is institutional investors money and causes inflation in things like housing, stock markets, VC funds, and yeah, probably cryptocurrency.
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pas 3133 days ago
Rent is included in the CPI, and it usually co-moves with housing prices .. and yet .. it means no difference: https://www.ecb.europa.eu/pub/pdf/other/mb201008_focus06.en.... (it's much more drastic in the US CPI - probably because more people own their homes in the EU and gentrification and other effects are a lot slower too? who knows..)
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