Possible Economic Crisis & Crypto
As the USD index is dropping to lows that haven't been seen in several years, it is, in my humble opinion, time to start thinking about the macroeconomic situation. With the debt of the US and other countries looming, I did forget to talk about the fact that other countries are also in debt as well, the system is poised for a major correction soon.
We have not seen how the cryptos react to a major economic crisis, as Bitcoin was created after the last major one that occurred a decade ago. Some things to keep in mind is stay within your means of living if possible, and think about diversifying your gains that you have made, I share some ideas such as getting into precious metals as well.
You bring up some interesting points. Keep doing it. I find it very interesting as I had followed the last economic crisis in 2008-09. The USD is now falling - definitely.
Re: Economic crisis - I am in a quandry on what to do. In 2008, when the US and world economy was collapsing, intelligent economists and expert traders said the same as u......I followed a lot of that and lost money as the USD became stronger. Gold and commodities crashed, as did other hard assets. No one had predicted the way it turned out.
What happened was that people around the world flocked to the USD because the US was the most stable country and economy. Even though it looked like the US economy would collapse, it was considered a better value and less risk than any other country.
I bring this up not to contradict u, but because I really don't know what to do. I welcome your ideas.
It is hard to say how things will play out, but there a few factors which may make a difference this time, last time the housing market crash actually helped the dollar in a way as people attempted to recoup the usd.... This time may be different as it really depends on what is causing the crisis. If rising inflation is the cause then I am confident that precious metals will be a smart investment. It will be interesting to see how cryptos fare. Land and commodities will probably be safe bets as well, but only time will tell. Thanks for the feedback!
Dollar Index falling because of lower than expected inflation? I really like the fact that you giving solid advice on diversifying. When the next economic crisis hits, I,actually, do hope more people adopt crypto.
I think it's falling as a result of other countries rising as well as usd inflation...thanks I appreciate the feedback. It will be very interesting to see how crypto fares during and after the crisis, fingers crossed that it will do well!