The continued rise in cryptocurrency prices is starting to produce imbalances in the real economy, exemplified by the loss of 4% of the US workforce, due to the wealth effect.The loss of the labor force is helping to exacerbate the fiat currency inflation rate, even as we continue to experience a massive deflationary trend in cryptocurrency terms.Cryptocurrencies are set to create further distortions and destabilizing trends within the economy as fiat inflation is set to deepen, while deflation in cryptocurrency terms may also accelerate.I believe that national governments will be left with no choice but to crack down on cryptocurrencies or face an increasingly grave threat to their monetary policy as well as to the overall economy.There may still be plenty of time to invest in cryptocurrencies and profit from it, but investors should keep a keen eye on signs that it may be time to get out.
