Capital flow.

This is something that the traditional financial (or mainstream) media rarely talks about. I would say it is by design since this is a central component to the economic and financial picture of the world.

So while people focus upon the talking points put forth by their favorite storyteller, we see this crucial factor overlooked.

It is, however, getting some attention. There are a few areas where the gig is up. Things progressed to the point where deterioration is happening before our eyes. Money is on the move and it is going to obliterate some areas.

In this article we will discuss what is already being seen and potentially how this could affect crypto.

Capital Goes Where It Is Treated Best - Impact On Crypto

Europe. New York. California. China

These are all areas where the flight of capital is underway. There are a number of reasons for this, depending upon which location is focused upon.

We will start the analysis with war. This is the number mover of capital.

Historically, capital flows can alert us to the future prospect of war. Those who have stake in the game are quick to move things, especially the larger players. That which can move is.

It is why assets such as gold, foreign stocks, or US Treasuries are purchased. This contrasts something such as real estate, which is locked under government control.

When war kicks off, it is too late. Money is either gone or stuck. I can tell you the bigger players already have it pushed out the door.

For a couple years, I warned that war is on Europe's horizon. The system is collapsing and the power brokers (politicians and bureaucrats) are tightening the noose. They set out to remove all freedoms, another precursor to war. My guess is that, at some point, capital flow will be banned from the EU (and UK).

Then we have China. The above is already the case there. Nevertheless, the wealthy are doing what they can to get money offshore. Many are using crypto to bypass the traditional system. Either way, billions are being moved out of the country, at a time when foreign investment is drying up.

Which brings us to the United States.

We see two countries making an overt socialistic move (similar to Europe). New York and California are under fire for their proposed taxation policies. This is nothing new since it started long ago. Exodus is accelerating with the recent proposals by the political leadership. This is on top of insane regulatory environments that make it difficult to conduct business).

So what is happening? People are fleeing and taking their companies with them.

This is what happens when those with the means can move capital out of an area. The problem is that it not only is the personal assets that go. Often, these individuals move their companies.

Recently, Citadel founder Ken Griffin moved his family and businesses to Florida. Illinois, another state following the other two, is also seeing an exodus. Not only did Griffin's wealth leave, so did the jobs.

Larry Page, one of the founders of Google, departed California to escape the state's proposed wealth tax. He also went to Florida, taking his flying car company, Aero, with him.

To make matters worse, Griffin just dropped $180 million to purchase a building in Miami.

Can Crypto Benefit?

Capital goes where it is treated best.

So far, crypto has failed on this. To say that capital is well treated by the industry is a laugher. Known for rug pulls and scams, it is hard to defend the history of what took place.

This is something that has to change. Perhaps we are seeing it as larger entities get involved. Many crypto purists complain about the transition yet the record of this involved is spotty at best.

To say that people should invest their money into the crypto game based upon the track record is nonsense. Outside some of the coins tied to networks, there isn't much success. Part of this can be attributed to being in the start up phase. However, it is hard to push that narrative as building is limited.

Much of what we saw where pumps, crazes, and gambles that were destined to fail. In most cases, there wasn't even a solid attempt at creating anything.

NFTs. Early DeFi. Memecoins.

All of these were lottery tickets basically tied to Ponzis. Get in early, ride a wave, and get out.

Crypto can offer an alternative to the corrupt banking system. To achieve this, it must be less corrupt. We know banks will enter seeking to do the same. They are extractors bent on sucking every cent they can.

We can counter this.

It will not occur unless there is something that can provide confidence. Bitcoin has that. So does Ethereum. Outside of that, we see very little.

Most of the discussion is around markets, pumping XYZ token, and Lambos. This has not changed in 15 years. While the frenzy will diminish with each bear market, it will return as prices move higher.

All the while there are crickets surrounding any building.

Capital will flow to where it is treated well. Whether it is government or scammers hijacking the capital, the result is the same.

Crypto can benefit but only if it changes.