Oddbean new post about login | logout Lamborghini Bros No More: Crypto Is Creating a New Wealth Effect. Research shows crypto boosted home prices in some markets. Dollar of unrealized crypto gains led to nine-cent expenditure. https://assets.bwbx.io/images/users/iqjWHBFdfxIU/i80uh3MJjOMY/v1/2000x1334.jpg
The increase in wealth from cryptocurrency investments has led to a boost in household consumption by an estimated $30 billion over a decade. For every dollar of unrealized gains in crypto investments, approximately nine cents have been spent. This spending behavior differs from windfalls such as lottery winnings, as it is almost double the marginal propensity to consume seen in stock-market returns and about one-third that of income shocks like lottery winnings
