US Market Crash Expected as Household Income Explodes, Will Millennials Flock to Bitcoin?

Bitcoin News | Crypto News | Latest News

For the first time in history, US household wealth has surged above the $100 trillion mark, fueled by the rise in the value of stocks and properties. However, analysts say the unsustainable growth in household wealth could cause a crash, which may lead millennials to flock to Bitcoin.

In September, US household wealth reached $100 trillion, and ostensibly it seems like a positive development for US markets. But, in comparison to the stagnation in actual US household income, it is quite evident that the rapid growth rate of US household wealth cannot be sustained in the long-term.

Speaking to Business Insider, AJ Bell investment director Russ Mould stated:

FREE CRYPTO COIN JUNKY HANDBOOK - 147 page guide covering Crypto Fundamentals, Beginners/Advanced Crypto Trading Strategies, Crypto Mining Techniques, ICO Investment strategies, and so much more.

CRYPTO TRADING STRATEGY GUIDES - Whether You're Day Trading, Swing Trading, Or Just Investing...Our Extensive Guides Will Get You To Where You Want To Be.

“Household net worth cannot sustainably grow this much faster than incomes. Assets have been bid up and at some stage there has to be chance that they correct, just as happened in 2000 and 2007.”

Bubble-Like Behavior

According to Mould, the US stock market experiencing one of the strongest bull markets in history and the real estate market continuing to increase in value led to an abrupt increase in household wealth. However, if household wealth cannot be backed by stable income, then the market will be vulnerable to a major correction.

“The difference is likely to be accounted for by the surge in the value of financial and other assets — equities, bonds, property and rankly everything from vintage cars to art to wine to baseball cards. And this is one warning that at some stage another collapse in financial markets will sweep around the globe,” Mould added.

Bitcoin Housing bubble crash

Nouriel Roubini, a widely recognized economist and professor at Stern School, also recently called for a financial crisis in the US market by 2020, explaining that the market has been demonstrating bubble-like behaviors over the past year.

THE COMPLETE IDIOTS GUIDE TO MARGIN TRADING ON BITMEX - Beginner Strategies for Generating Consistent Profits with Margin Trading on Bitmex

TOP 3 BITCOIN CASINO & SPORTSBETTING SITES OF 2018 - Looking to Have a Little Fun with Your Crypto? Check Out the Latest & Most Innovative Crypto Gaming & Sportsbetting Sites on the Web

With the discrepancy between US household wealth and income growing exponentially and global debt rising to $250 trillion, Mould emphasized that the US market is due for a correction, whether that will lead to a minor correction or a financial crisis as Roubini predicted remains uncertain.

Viability of Bitcoin as an Investment

Bitcoin, like gold, is often considered as a store of value with no correlation to the broader financial market. It moves independently of traditional assets and commodities, which allows Bitcoin to operate as a reliable store of value in times of uncertainty and market volatility.

While there exists no correlation between Bitcoin and the broader financial market, Matt Hougan, vice president of research and development at Bitwise Asset Management, told Bloomberg in an interview that the decline of the global market does not guarantee a bull market for crypto.

“Non-correlation is not the same as inverse correlation so there’s no guarantee that when the market goes down crypto will go up. Over the long term, we think the fundamental drivers of crypto are different from the fundamental driver of equities and other assets, and we would expect the low correlation to persist,” Hougan said.

Still, considering the increasing demand for Bitcoin from millennials, with surveys finding that over one third of millennials are planning to invest in cryptocurrency within the next few years and 80 percent of American millennials already aware of Bitcoin, it is highly likely that if a financial crisis occurs in the near future as experts predict, Bitcoin will emerge as a viable store of value alongside gold.

Leave a Comment

Latest Crypto News

Coinbase Now Has Its Own Political Action Committee

Coinbase Firmly Denies Accusation of Proprietary Trading

Cryptocurrency exchange operator Coinbase has denied that it engages in proprietary trading and that these activities account for a large percentage of the firm’s overall trading volume. Yesterday an investigation into cryptocurrency exchange policies and

Pot Stocks Go Parabolic as Crypto Markets Cool

Pot Stocks Go Parabolic as Crypto Markets Cool

The cryptocurrency markets are nine months into a bear market, but the animal spirits that drove the bitcoin price to nearly $20,000 haven’t disappeared. Rather, it seems that they have found a new outlet —

Most Complex dApp on Ethereum Already Has Millions of Dollars at Stake

Ethereum Wallets are Enabling Transaction Scheduling, Killer Feature

MyCrypto, a non-custodial Ethereum and ERC20 token wallet created by the co-founder of MyEtherWallet, has integrated a feature that enables Ethereum users to schedule ETH transactions ahead of time. On MyCrypto, an open-source wallet that is structurally similar

How Ethereum Hackathons are Drastically Improving Blockchain Systems

How Ethereum Hackathons are Drastically Improving Blockchain Systems

Since mid-2017, Ethereum hackathons have been held in many major cities across the globe, to encourage the development of decentralized applications (dApps) and blockchain-based systems. ETHGlobal, the biggest Ethereum hackathon organization to date, has played a key

Nasdaq is Acquiring Crypto-Friendly Swedish Exchange Cinnober

Nasdaq is Acquiring Crypto-Friendly Swedish Exchange Cinnober

Nasdaq, the world’s second-largest stock exchange, announced Friday that it is in the works to acquire Cinnober, a trading solution provider based in Sweden. Cinnober has a history for bullishness towards digital assets and making it easier

Most Complex dApp on Ethereum Already Has Millions of Dollars at Stake

The State of Ethereum

In my latest couple of articles I’ve been kind of focused on Bitcoin and its underlying technology, the blockchain. I discussed the lightning network, why I see Bitcoin as the King of Kings and, of course, why so

BITMEX-LIQUIDATIONS-HOW-TO-NOT-GET-LIQUIDATED-REKT

Bitmex Liquidations: How to Avoid Getting REKT

Chances are, whether you’re a new or more experienced trader, you’ve a fallen victim to over-leveraged trades.  Subsequently, you’ve been liquidated due to the overwhelming urge to 50X-100X your money. Like a moth to a

Blockchain’s Popularity Among Large Enterprises Soared 11% This Year

Blockchain’s Popularity Among Large Enterprises Soared 11% This Year

New research from fintech analysts Juniper House has found that blockchain’s traction with large enterprises has risen by 11 percent this year, according to a press release published September 11. Juniper’s Blockchain Enterprise Survey: Deployments, Benefits & Attitudes (Second

Sign Up Below!
Airdroppin the Latest Crypto News, Trading Strategies, Tools, & Reviews



1
Bitcoin
Bitcoin
$6,738.61
4.49%
2
Ethereum
Ethereum
$243.99
14.47%
3
XRP
XRP
$0.5539
27.91%
4
Bitcoin Cash
Bitcoin Cash
$495.92
13.44%
7
Litecoin
Litecoin
$60.388
9.92%
9
Cardano
Cardano
$0.087715
13.89%
6
Stellar
Stellar
$0.2473
11.11%
14
NEO
NEO
$19.365
9.43%
5
EOS
EOS
$6.021
10.83%
12
IOTA
IOTA
$0.6018
10.47%

Crypto Guides & Tutorials

 Crypto Reviews

Subscribe to Our Social Media Daily Crypto Memes
Follow, Like, and Share Our Memes With The World


Pin It on Pinterest

Plus Free Crypto Trading Guides, Tutorials, Latest Crypto News,
and Altcoin Reviews. (Coming Soon: Pro Trading Signals)
SIGNUP FOR YOUR FREE
CRYPTO COIN JUNKY
HANDBOOK
DOWNLOAD NOW
We hate spam as much as you do. Unsubscribe anytime.
Plus Free Crypto Trading Guides, Tutorials,
Latest Crypto News, and Altcoin Reviews
(Coming Soon: Pro Trading Signals)
DOWNLOAD NOW
We hate spam as much as you do. Unsubscribe anytime.
SIGNUP FOR YOUR FREE
CRYPTO COIN JUNKY
HANDBOOK
Plus Free Crypto Trading Guides, Tutorials, Latest Crypto News,
and Altcoin Reviews. (Coming Soon: Pro Trading Signals)
SIGNUP FOR YOUR FREE
CRYPTO COIN JUNKY
HANDBOOK
DOWNLOAD NOW
We hate spam as much as you do. Unsubscribe anytime.
Plus Free Crypto Trading Guides, Tutorials,
Latest Crypto News, and Altcoin Reviews
(Coming Soon: Pro Trading Signals)
DOWNLOAD NOW
We hate spam as much as you do. Unsubscribe anytime.
SIGNUP FOR YOUR FREE
CRYPTO COIN JUNKY
HANDBOOK