Cheap debt is given for housing with a mere 10% down becoming quite common, and housing has never been more expensive.
Debt is being used by companies to buy back stocks, and stocks have never been more expensive.
Loans are being given at 0% interest to buy cars, and cars have never been more expensive.
Banks only loan money for the above things because they are backed by, in the banks opinion, collateral.
Which banks are loaning money to buy bitcoin? My position is the amount of debt being used to purchase bitcoin is very small relative to the rest of the economy.
The point is that it is impossible to separate Bitcoin and it's fate from the greater economy. Cheap money fuels bubbles. Last time it was real estate, this time it looks like Bitcoin.
Janet Yellen recently expressed concern regarding the amount of debt in the economy. Apparently giving out loans at rates less than inflation causes a lot of malinvestment.
Those I know investing in Bitcoin do so because it's the only asset that exists outside the system we have today. It's the escape hatch. The volatility of course concerns us, but we believe in the fundamental ideology and in the long term believe it'll change the world. The monetary policy we have today is, quite frankly, insane.