Cryptopunks sold for millions at Christie’s in Hong Kong this week. The new item category has been the highlight of every major crypto convention in the last year, with each collectible being more unique than the last. Crypto experts have been speculating about when the bubble will burst on this crypto-based art market. Unfortunately, it appears that the bubble is only getting bigger.
In yesterday’s post, we talked about a certain Christie’s auction and what it might mean for the markets.
Nine pixelated cryptopunks would be auctioned off for an estimated $7-9 million.
We are happy to announce that it was a great success!
Needless to say, this market is still hot. Even more significant is the announcement by eBay, the world’s third largest online marketplace, that it now allows NFT sales on its platform.
It seems it’s not just a fad.
While many economists expected inflation to rise, few expected it to be as fast and as high as it is now.
An even bigger blow to the Fed was that core consumer prices, which we’ve talked about before as a key indicator for the Fed because they don’t take into account food and energy prices, posted their biggest annual increase since 1996.
If only America’s problems were limited to inflation. Last Friday’s jobs report revealed serious problems in the economy, a new phase in a failed recovery that policymakers have yet to address.
This issue is fantastically illustrated in a chart by Joe Wiesenthal, host of the Dogecoin Maximization show on Bloomberg.
The white line represents the demand side of the equation.
We clearly see a significant spike at the start of the pandemic in March 2020, with business owners complaining of a lack of sales, indicating a very low demand for goods and services.
The yellow line represents supply, showing that companies are now more concerned about the inability to find good quality workers. But wait…
Didn’t we just see a disappointing employment report?
Of course, with so many people out of work, it should be easy for companies to hire new employees.
What is going on?
It seems to me, and this is purely speculative, that companies that laid off workers at the beginning of the pandemic are now having trouble rehiring those workers at their old salaries.
Many people in different sectors have told me that their jobs are getting harder. Employers demand more time and more production for the same pay.
On the other hand, people who have lost their jobs receive extended unemployment benefits.
Why would they want to return to that environment when they can just as easily sit on the couch and watch TV or surf the Internet?
Employers are now beginning to see that if they want to hire good workers, they must attract them at higher wages, which they can easily afford, as evidenced by the explosion in demand for goods and services.
Higher wages mean more money in the system, which will likely lead to even higher inflation. It’s a vicious cycle, and unfortunately I don’t share the Fed’s optimism that inflation will be temporary.
Bitcoin was created to fix this, just like Doge. The Doge started out as a joke, but with annual supply growth of 3-4% and rapidly increasing adoption, it now looks much more attractive than the US dollar.
This source has been very much helpful in doing our research. Read more about where to buy nft art and let us know what you think.
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