Exploding Household Wealth Set to Pop Market Bubble, Will People Flock to Crypto?

The U.S. household wealth has surged to a high never seen in history: $100 trillion. The pump has been fueled by rising stock and property values. And when thing are pumped so high, they are being valued more than they are actually worth. Everything has been over valued for the past few years, from stocks to commodities. This growth is not sustainable, and the inflated bubble will result in a crash.

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Maybe this year will be when it happens, as foretold in The Economist of 1988 with 2018 being the year of the world currency. When this crash happens though, will more people be running to get into Bitcoin and crypto as a result?

The U.S. household wealth may be at $100 trillion, which seems good for the markets, but household income has been stagnating by comparison. The growing household wealth is not matching reality and won't be sustained, and a big correction is coming at some point to smack everything back down closer to reality. AJ Bell investment director Russ Mould told Business Insider:

Household net worth cannot sustainably grow this much faster than incomes. Assets have been bid up and at some stage there has to be chance that they correct, just as happened in 2000 and 2007.

The U.S. market is in a bull run, and apparently the strongest in history. Real estate is continuing to increase in value, making some people money by selling, and others getting into more debt to buy in. This increase in the real estate market shot up the household wealth value, but if it can't be matched by stable household income, then the market is poised for a huge correction.

The difference is likely to be accounted for by the surge in the value of financial and other assets — equities, bonds, property and rankly everything from vintage cars to art to wine to baseball cards. And this is one warning that at some stage another collapse in financial markets will sweep around the globe.

Another economic expert Nouriel Roubini expects a financial criss by 2020, saying the market has been showing "bubble-like behaviors". To boot, the global debt is rising to $250 trillion. These factors combine to set conditions favorable for a market correction. It could just be a minor correction as the financial sorcerers try to work their number-magic games and manipulations to keep the bubble afloat. But this could be the beginning of world-changing times ahead.

As such, Bitcoin and crypto might be the sight for a financial rescue for many. It's already being used in current financially imploding areas like Venezuela and others. With Bitcoin and gold operating more independently of traditional assets and commodities, people can store their value as the traditional economic model implodes.

But, it's no guarantee that Bitcoin will surge or not experience a crash if everything else crashes either. Yet, more people are aware of Bitcoin, with 80% in the U.S., and surveys show 1/3 of millennials are planning to invest in crypto in the next few years. If a financial crisis occurs, some of us may be in good positions as more people try to put their money into Bitcoin as a trusted store of value.

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