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Lamborghini Bros no more: Crypto is creating a new wealth effect

By Economic Times - 7 months ago
How much that extra cash gives them confidence to spend more - a phenomenon economists call the wealth effect - is a hot topic whenever crypto prices are surging. A group of researchers tried to quantify it and determined that crypto bonanzas in the US aren't exactly spent like windfalls from winning the lottery. And so far, the effect has been relatively modest on the $28 trillion American economy. But if the asset class continues to boom, the study provides insight on potential game-changers in consumer patterns.

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