387 sats \ 5 replies \ @elvismercury 5 Nov 2023 \ parent \ on: Bitcoin Milkshake Theory Happening in Japan bitcoin
Thank you for asking. I keep hearing about this, too, and it never quite rose to the level where I bothered to find out. Thanks for being on that wall :)
Here's a cleaner explanation than the bitcoinmagazine one linked below, with an interview from Brent Johnson, the guy who invented the term.
From reading your linked article, it doesn't look like the milkshake theory transfers well to Bitcoin. If the milkshake represents liquidity being injected into the economy with a period of QE and low interest rates, and the slurping through the straw represents an ensuing period of higher interest rates that lead to carry trades, it sounds dependent on international spreads on interest rates (which Bitcoin has no concept of).
reply
You could be right -- I viewed the 'btc milkshake' thing in a more conceptual way: something stronger absorbing the flux of the weak things fleeing to value.
But I just learned what any of this meant like an hour ago, so my opinion isn't worth much :/
reply
Excellent link. Thanks for posting it. It does explain things better. I'm still not certain about understanding where the milkshake comes in. I guess the dollar is the guy sucking up global liquidity?
reply
I believe that's right -- all the foreign currencies getting slurped up as they fall apart first and migrate to the USD as the best available option.
I suppose that's where the bitcoin part comes in? Either some of that bypassing the USD, bc they've been orange pilled, or else btc slurping up the dollar in the same way the dollar slurped up everything else.
Sounds a lot like the hyperbitcoinization story except with actual financial mechanics and not just pure cotton candy hopium.
reply
I guess. I wish we could get this Bruce Johnson guy on SN so we can ask him.
reply