Executive summary: What the Dollar Milkshake Theory Means For Crypto
The Dollar Milkshake Theory predicts the demise of fiat currencies against the dollar. In this article, I explore whether the theory is already playing out and what it would mean for Bitcoin and Ethereum.
What you will learn:
- The Dollar Milkshake Theory and its inventor, whether we are already in it, and what it could mean for Bitcoin and Ethereum.
Executive summary:
- The Dollar Milkshake Theory explains how the coming sovereign debt crisis will unfold and why the dollar will strengthen against other fiat currencies.
- Brent Johnson based the Theory on the long-term debt cycle and the high reliance on dollars for debt and asset pricing.
- The theory could play out over two to five years, leading to sovereign debt crises.
- Countries will try to print their way out of it, strengthening the dollar and hard assets.
- Ethereum would get hit by a sovereign debt crisis, which negatively impacts risk assets, unless stablecoins see further real-world adoption and Ethereum's real-world adoption increases.
- Bitcoin could benefit if its value rises against non-dollar fiat currencies, indicating it is being perceived as a store of value.
Full article:
What the Dollar Milkshake Theory Means For Crypto | CoinMarketCap
When the U.S. dollar comes to drink your milkshake, you better get out of the way!
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