The cryptocurrency industry has been one of the most profitable industries pro-Covid. Many cryptocurrencies have gone ten to twenty times what they were a year ago, and investors have made huge crypto profits off their investment. In a report, Bloomberg highlighted this fact, claiming that the huge gains from investing in crypto are giving birth to ‘the next generation of super spenders.’
Crypto profits improve financial conditions
Crypto profits that investors made off their investors are being diverted to raising standards of living and especially buying luxury goods. In their report, Bloomberg said that “the outperformance of luxury stocks such as Hermes International this year is due to the strength of U.S. demand for pricey handbags, jewels and designer clothes.”
However, as per Jefferies International Ltd.’s analyst, Flavio Cereda, this Wednesday, “there’s a surge in asset values, from stocks to real estate and contemporary art, and even more importantly, there’s a significant impact from cryptocurrency wealth that could benefit luxury-goods makers.” Indeed crypto profits have enabled every investor to be financially independent.
‘The U.S. continues to surprise’
Cereda, in his note, wrote about his feedback after vising New York and Florida, where crypto adoption is at its peak due to crypto-friendly mayors. Cereda talked about the effect of crypto profits and the surge in demand of luxury brands whose customers “are younger and more affluent than in the past.”
The two cities of New York and Miami are known for their CityCoins projects as well. The Mayor of Miami, Francis Suarez, has been very vocal on crypto adoption and is often compared to the incoming Mayor of New York, Eric Adams. Cryptocurrencies have become a vital component of their election policies.
“He [Cereda] estimates that local “superspenders” account for $20 billion of the total, which is more than twice that from Europe, though still well below China,” said the report from Bloomberg.