52 - The Crypto Milkshake Theory | Brent Johnson

Brent Johnson, known for his “Dollar Milkshake Theory,” comes on the podcast to discuss the markets from his macro perspective.
Feb 15, 20211 min read

Brent Johnson, known for his “Dollar Milkshake Theory,” is a macro-focused wealth manager. We discuss the markets from his broad perspective, focusing on the Federal Reserve, the Dollar, and our take on his ideas – The Crypto Milkshake Theory.

We observed the Federal Reserve coming into the limelight in 2020, with increased attention on Jerome Powell and other central bankers as they become more like players than referees.

Brent lays out how our current system (and all fiat currencies) are inherently built for exponential growth. An exponentially growing market will be increasingly susceptible to larger and more frequent volatility. This calls for stronger central bank action, which accelerates these fundamental issues.

Interestingly, Brent believes in the strength of the Dollar (at least in the short-term), expecting it to be the last fiat currency to get knocked out. The COVID-19 Crash in March 2020 was an example of this deflationary volatility, and Brent views the current narrative in the markets as ripe for another market crash and dollar bull run.

On the crypto side of things, Brent sees assets like BTC as a valid store of value, and the advantages of non-sovereign wealth stores merit serious consideration. His concerns about the space involve the difficulties of using crypto as money and the power of governments to curb blockchain use. However, blockchain technology is a “genie out of the bottle” and is here to stay.


Brent on Twitter

Brent’s Presentation on The Dollar Milkshake Theory

Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.

Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here.

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