Crypto Influence on Current Prices

[Johnny630]

This is just a food for thought �� question?
Over this current year Jan 21 to Now I often wonder on big high end Purchases Specifically in the big major auctions was Crypto used to fund these purchases ? If so what percentage of high end items were purchased with crypto?

How would a major correction in the crypto market affect the current state of this inflated card market ?

[Snowman]

Yes, it definitely has a measurable influence. As for myself, my two biggest cards were both purchased with bitcoin.

[sportscardpete]

Both cards and crypto fell in February/March, and only crypto has rallied back to new highs (I am solely basing it on the cardladder50 index, which skews modern).

I don't think the two markets are as related as people think.

[puckpaul]

They are only related in the sense that the markets are all flooded with liquidity and the same phenomenon running up the prices of crypto, cards and many assets are all interrelated. Crypto speculation is probably more related to modern card speculation than Vintage but hard to completely separate the two.

[Johnny630]

Originally Posted by puckpaul

They are only related in the sense that the markets are all flooded with liquidity and the same phenomenon running up the prices of crypto, cards and many assets are all interrelated. Crypto speculation is probably more related to modern card speculation than Vintage but hard to completely separate the two.

100+ agree

[Exhibitman]

Depends on what your definition of "is" is. Anyone who can afford to drop six or seven figures on cards isn't worrying about short term gyrations in other investments. Those of us whose spending is capped at a much more modest level very likely do not own a meaningful amount of crypto as compared to home equity, securities, retirement accounts and (if you've collected for a long time) cards.

Personally, I'd like to see crypto crash or be regulated out of existence just so all of these smug millennials will STFU. They remind me of those first-wave Internet a-holes ca. 1999 or the real estate jagoffs of 2007.

And stay off my lawn!

[Frankish]

I think it has less to do with crypto in particular than asset inflation in general so people have a lot of cash (or equivalent value in liquid assets) to throw around. Assets that either amplify/leverage the inflation or are further out the risk/reward curve (and in many cases those may be the same) just make it that much more obvious. But maybe crypto is a the most visible example.

Thinking about it, what is the difference between someone's bitcoin going up 5x and their SPAC stock going up 5x (or the warrants even more)? Or their house doubling in value (and if they put only 20% down, that's roughly a 6x return on their leveraged investment). In any case, if they decide to convert to other assets or cash in and have some play money, it could buy some very nice cards.

So people may use crypto to buy cards or just feel richer because of their crypto holdings and buy cards with cash or other assets, but I think that's symptomatic of something larger.

Originally Posted by sportscardpete

Both cards and crypto fell in February/March, and only crypto has rallied back to new highs (I am solely basing it on the cardladder50 index, which skews modern).

I don't think the two markets are as related as people think.

I think you are correct. Personally, I think crypto has value beyond a marker/play on asset inflation and own some bitcoin and ethereum. If that's correct, then we'd definitely expect more long-term divergence (or at least less correlation) of crypto and card prices.

It will be interesting to see where card values go if the Fed ever really removes its extraordinary asset support.

PS: Darn, Paul beat me to it and more succinctly.

[Johnny630]

To me the recent run of card prices is directly related to Cyto and or stock market highs. That’s just me.