A Follow Up to "No Recession"
In my post on having "No Recession", I mention that "Money is a flowing concept".
However, there is an article lately on the drop in NFT Volume in Mar 22 when compared against Jan 22.
There were further information from TheBlockCrypto on the drop in NFT transactions and volume as shown in the graphs below.
|Graph taken from TheBlockCrypto Website
So, since NFT transactions have decreased, does this imply that demand for alternative assets will decrease as well, potentially leading to a crash? Is it possible that a prospective recession is on the list if that's the case? In addition, where has the money gone?
I will try to provide my opinions on the questions.
1. Will there be a crash in NFT?
I don't think I'll be able to make any predictions in the near future. However, if one believes in the NFT's functionality, there is a good probability that prices will rebound in the future.
2. Will there be a Recession?
I stand by what I said in the first post about the recession and believe the economy is still flourishing while it recovers from the pandemic. Nonetheless, the ongoing war has thrown some uncertainties in my mind, and I hope it ends soon.
3. If money is a flowing concept, where has the money went to?
In my first piece, I stated that the money had returned to the stock market. However, the recovery was short-lived. Now that the stock market has resumed its downward trajectory. Because of the ongoing war, money has likely flowed into crude oil, with prices hitting above $100, and several commodity prices have also reached record highs. Share prices of publicly traded oil and gas companies, as well as commodity firms, have climbed dramatically.
Once again, thank you for reading.
Stay tuned for the next write up!.