Because market crashes don’t actually reset markets — they’re acute, shorting events. That isn’t to say acute events don’t hurt. They do — it’s about who is participating in the market getting rekt.
Resets require chronic hits; you would need multiple collateral damage events all happening at the same time without recourse to reserve or inflation; or the time it takes to implement bad deflation/inflation. It’s an idea in practice not known to most monetary policy or cryotocurrency kids these days i.e. a true global war, or mass liquidations on a scale not seen in at least 80 years. It can also (more often) be the result of a war, or deep state/political regime change.
Some “localised” versions we have for this in the world today are Iran, Venezeula, Uzbekistan and Zimbabwe; many others. It’s a shame that the cryptocurrency “punks” aren’t solving more of these real-world problems for people who need the help from the community, but at least Venezeula and Reserve/RSR are someway close to trying.
This localised situation (albeit, to China and sone US market participants mostly) all comes down to how many folks are involved in Evergrande, the provable reserves in them and Tether — and upcoming regulation findings in the US.
China recently banning cryptocurrency isn’t enough to hurt just yet, but they’re flexing and studying outcomes like any economist would. Once civillian money surveillance is 100% established, their CBDC will be most of the way established and presumably Bitcoin can be treated like an actual asset again i.e. stay out of the market now, long enough to stagnate it or drain it towards Jan 2022, and then push up the value when they feel like they can reapprove Bitcoin and Tether again as it becomes re-approved.
I’m guessing of course, but it’s a hypothesis that, so far, makes the most sense above anything I’ve seen or read from professional commentators who don’t know what to think.
See, money is not merely wealth.
It’s only ever about creating power and the patterns of play are always the same.
In terms of establishing control now, in steps, over the future of money — China retains the upper hand globally before everyone else catches their breath, so they may as well test as much as they can, and run with it. I’m more surprised Russia et al and even the typical Western powers aren’t clubbing together to do the same, but I genuinely think they haven’t a fucking clue (and/or, they don’t seem interested enough in positive deflation right now).
Let’s see how December 2021 pans out.
