The period of the 1920’s was characterized by scantily clad flappers, prohibition, a booming stock market and machine gun wielding gangsters. The World in 1920 had just clawed its way out of a dark period of a World War and the deadly Spanish flu which accounted for the loss of millions of lives. This period of darkness caused humanity to coil up with pent up demand to socialize and party once the Spanish flu had finally been beaten. Eventually the Spanish Flu burnt itself out and it led to an era that became known as the roaring twenties. Free from the hardships of enduring through a World War and a global pandemic, people were free to express themselves and the World economy boomed. Ultimately as with all good things in life, they must finally come to an end which culminated in the stock market crash of 1929 and the subsequent Great Depression.
If history is cyclical then the period we are currently in bears a remarkable resemblance to the period just before the roaring twenties began. There have been a number of international regional conflicts around the world which has led to incalculable suffering and of course we are only now starting to emerge from the Covid-19 virus which has afflicted almost every habitable space on this planet. Confined to our homes and faced with social distancing guidelines it has led to humanity once again, as with the end of the Spanish flu having a pent up demand to once again be free to party and socialize as we did before. Against this backdrop of people wanting things to return to normal and enjoy things like restaurant dining, travelling and partying there is trillions of dollars saved up in bank savings accounts ready to be unleashed on the economy. Fear causes people to save in an abundance of caution when the future is uncertain. Now that masses of populations are beginning to be vaccinated, the fear is subsiding giving hope and causing people to long to go back to what they used to love to do.
The roaring twenties and the subsequent boom were led by two major things, Electricity and Combustion. These two major inventions helped fuel the boom that led to an increased standard of living, higher average GDP’s and rampant stock market speculation. Looking at our current economic conditions we can speculate that new emerging technologies might fuel this new potential roaring twenties 2.0. Obviously it is almost impossible to predict the future but by looking at emerging current technologies like AI, robotics, Blockchain, the commercialization of space and others, it is possible to see how we could be on the cusp of a new booming age.
Bitcoin and other Cryptocurrencies began booming around the end of 2020. Governments all around the World were faced with their economies crashing due to Covid-19 and began to flood the markets with fiscal stimulus to prop them up. Investors reacted by investing heavily in the stock market and real estate, propelling them to new all time highs. The threat of rampant inflation became the underlying catalyst that began the Bitcoin and Cryptocurrency boom we are currently experiencing. The entire Cryptocurrency market cap has exploded to being around $2 trillion dollars as of this time now. This massive amount of newly minted wealth could be one of the factors that drives the start of the new roaring twenties.
Obviously this is purely my own opinion and time will tell if I’m wrong or right but the conditions and environment currently are very similar to the start of the roaring twenties back in the 1920’s. Now is the time to invest in Bitcoin and other cryptocurrencies that have strong growth prospects for the coming years. This could be the beginning of a golden age and if it does turn out to be roaring twenties 2.0 then now is the time to be aggressively buying assets that will appreciate going forward. There will definitely some dips and crashes along the way but overall I feel the trend for Bitcoin and cryptocurrencies will be going up.
Time will tell how this plays out. This is just my opinion based on an analysis of cyclical history and shouldn’t be used as investment advice. Do so at your own risk. Good luck to all.