Breaking News: “Donald Trump says we are close to the 1929 crash, a depression, and a new world war.”
"I think our country is in the most dangerous position it's ever been in, both economically and security-wise. Both street gangs and gangs overseas, in the form of other countries that are frankly very powerful," Trump said.
"We don't know what we're doing. We have leaders who don't have a clue," Trump said.
“We're very close to that and I think we're very close to a world war — we've got people who don't know how to deal with it,” #Trump .
The world is heading for an economic storm. Inflation is skyrocketing, currencies are plummeting, and recession is lurking around the corner.
In such conditions, investors are looking for alternative assets to protect their assets. One asset that is increasingly attracting attention is crypto. Moreover, crypto is currently in a bullrun phase.
Why Crypto? Understanding Its Potential
Crypto, especially Bitcoin, is often referred to as "digital gold". This comparison is not without reason. Just like gold, $BTC has a limited supply. Unlike fiat currencies that can be printed without limit by governments, the number of Bitcoins that will ever be in circulation is only 21 million coins. This limitation is what makes Bitcoin an inflation-resistant asset.
Bitcoin: More Than Just a Digital Currency
Bitcoin was formed in the midst of the Great Recession crisis in the US in 2008. As a response to the widespread failure of the traditional financial system Bitcoin, the emergence of #BTC has attracted worldwide attention with its revolutionary concept as a digital currency. Born in the midst of the global financial crisis, Bitcoin is presented as an alternative to a more decentralized monetary system that does not rely on traditional financial institutions.
Inflation Hedging Value
One of the main advantages of #bitcoin is its potential as a hedge against inflation. Unlike fiat currencies whose value can depreciate due to government monetary policy, Bitcoin's value is more stable and tends to increase in the long term. This makes Bitcoin an attractive asset for investors looking to protect their wealth from the risk of inflation.
Planned for the Future
The main purpose of Bitcoin's creation is to create a fairer and more transparent financial system. With the underlying blockchain technology, every Bitcoin transaction is permanently recorded and publicly accessible. This makes Bitcoin a very transparent asset and difficult to counterfeit. In addition, Bitcoin's limited supply makes its value tend to increase over time.
Transparency
One of the main advantages of Bitcoin is its use of blockchain technology. Think of the blockchain as a digital ledger that records every Bitcoin transaction since its inception. Each block in this chain contains information about the transaction, such as the amount of Bitcoin transferred and the wallet addresses of the sender and recipient. Because of its distributed and encrypted nature, the blockchain is extremely difficult to change or manipulate. This provides an unprecedented level of transparency in the financial system, where anyone can publicly verify every transaction. This transparency not only increases trust, but also reduces the risk of fraud and market manipulation.
High Growth Potential
Cryptocurrencies like Bitcoin are often referred to as the “digital gold” of the 21st century. Their growth potential is considered to far surpass traditional assets like stocks or gold.
Here are examples of the differences between Bitcoin and traditional investment instruments.
Crypto Investment Strategy During Economic Unstable
Diversification: Don’t just invest in one type of crypto. Diversifying your portfolio can help reduce risk.
Dollar-Cost Averaging (DCA): Invest a fixed amount on a regular basis, regardless of market prices. DCA helps smooth out the cost of purchases and reduces the impact of market volatility.
Focus on the Fundamentals: Before investing, study the crypto project well. Pay attention to the technology used, the development team, and its market potential.
Long Term: Crypto is a long-term investment. Avoid impulsive decisions driven by daily price fluctuations.
Protect your Digital Assets: Use a secure hardware wallet to store your crypto.
Challenges and Considerations
High Volatility: Crypto is known for its extreme volatility. This can be an opportunity for brave investors, but it can also lead to huge losses.
Regulation: Regulation of crypto is still evolving. Changes in government policy can have a significant impact on crypto prices.
Complex Technology: Understanding blockchain and crypto technology takes time and effort.
Crypto as Part of a Portfolio
Crypto is not meant to replace traditional investments, but rather complement them. By combining crypto with other assets such as stocks, bonds, and property, you can build a more diversified and risk-resistant portfolio.
When to Enter Crypto and When to Enter Traditional Instruments
We can decide when to enter and exit all types of investment instruments more wisely using technical and fundamental analysis of the asset. For example, crypto has a 4-year cycle theory, where we are in the phase towards the bullrun, then the fundamentals of certain coins to determine which coins we will invest in combined with technical analysis to know when to buy and sell the coin.
Conclusion
In uncertain economic conditions, crypto offers the potential to act as a hedge and a source of growth. However, it is important to remember that investing in crypto carries a high level of risk. Before deciding to invest, make sure you have done enough research and understand the risks involved.
Disclaimer: DYORRRR!!! NON FINANCIAL ADVISOR
#RecessionOrDip? #recession
