What impact does the milkshake theory have on the economics of cryptocurrencies?

3 answers

• Anuar AbdrakhmanovJun 21, 2021 · 4 years ago
  The milkshake theory, proposed by economist Brent Johnson, suggests that the Federal Reserve's monetary policy, particularly the quantitative easing measures, will lead to a global liquidity crisis. This theory argues that the excess liquidity created by the central banks will flow into assets with higher yields, such as cryptocurrencies. As a result, the demand for cryptocurrencies will increase, leading to a rise in their value. However, it's important to note that the milkshake theory is just a theory and its impact on the economics of cryptocurrencies is still a subject of debate among economists.
  608

  304
• Swain EgebergJul 29, 2021 · 4 years ago
  The milkshake theory is an interesting concept that attempts to explain the relationship between the Federal Reserve's monetary policy and the value of cryptocurrencies. According to this theory, the excess liquidity created by the central banks will flow into assets that offer higher yields, including cryptocurrencies. As a result, the demand for cryptocurrencies will increase, leading to an increase in their value. However, it's worth noting that the milkshake theory is not universally accepted and there are differing opinions on its validity and impact on the economics of cryptocurrencies.
  599

  200
• JustLearningPepDec 18, 2022 · 3 years ago
  The milkshake theory, as proposed by Brent Johnson, suggests that the Federal Reserve's monetary policy will lead to a global liquidity crisis. According to this theory, the excess liquidity created by the central banks will flow into assets with higher yields, such as cryptocurrencies. This increased demand for cryptocurrencies will result in a rise in their value. However, it's important to approach this theory with caution as it is still a subject of debate among economists and its impact on the economics of cryptocurrencies is not yet fully understood.
  562

  141