Paradigms in our global financial system

in LeoFinancelast year

I'm not a professional investor, in fact anyone taking this as financial advice is a moron and shouldn't be trusted to make any moves on any market, but I do have some knowledge that now and then enjoy sharing with anyone that cares enough to read my posts.

Volatility is about to go through the roof, inflation will continue to spike, and the next ten years are going to be very different than the past twenty and we will definitely see a lot of upswings and downswings. This is not related to scenarios like the one we witnessed two weeks ago with FTX but related to the very nature of the system the credit basis is unstable by nature.

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This is no reason to be scared, it's more about being ready to react to volatility and being able to deal with the markets. As a cryptocurrency investor I am already used to seeing my portfolio at 6 digits and a month later in the low five digits, it's normal. If I hadn't learned to have a long term mindset and not let my mindset get affected by short term swings I think I would look like a 50yr old when in reality I'm at my early 30's.

Once you understand the inherent value of bitcoin and cryptocurrency in general, the big picture is what matters, not the short term gains, and as long as you don't need that money you invested, odds are you will be fine in ten years.

Coming back to the credit system and its very unstable nature related to expansions and contractions, we have to understand that the picture they are showing to the general public is not real, it is a bubble and it will eventually pop.

Right now there is a chance to grab crypto at a discount and most people aren't doing so because of fear of a larger leg down. The fact that crypto prices in general are so low means good and bad news.

We just experienced the second largest exchange downfall and BTC didn't even drop more than 25% from the 19k crabbing we had been seeing for weeks in a row. The FTX drama is bad for the overall perception of crypto but it is a good thing that the price of BTC is holding so strong after such events.

The federal reserve is trying to take inflation down but experts opinion is that high inflation levels are inevitably for the next decade, as I said we are in for a different kind of ride we have been experiencing in the past two decades. Inflation is a beast that is about to get unleashed and there's virtually nothing the governments can do if they keep going down the same route they are currently traversing.

The pandemic relief actions are just an example of many, many wrong policies and monetary actions. There is no investment in infrastructure or models, they are just giving away money, that's their only solution to societal and economic problems.

Now take into account the political pressure from all fronts, the government is trying to cave their concerns about gas prices so they pretend to be able to push back against the cpi. GDP has been contracting, we are already in a recession and in reality you never recover at all from a real recession, the 90's or the 08's ones are a clear example that you never do recover.

Usually, federal strategies doesn't solve the long terms problem and this is because of the political pressure, their solution is to calm the fire short term and stop the criticism enough for the next term elections.

The Fed have been targeting the house market and the stocks market for years already and sharper rates are a consequence of this behavior, we are in for a housing market that is already knocking on the door, but man people are not prepared, they are actually drooling at a crisis that will bring down the housing prices to a point where they can buy, but they don't realize that everyone will get outbid by corporations that are looking to monopolize the market (and will do so) in order to have everyone renting their house forever, yes, forever.

5k and 500k Bitcoin are to possible options

So prepare for this, anything can happen and there's no predicting how things will unfold, anyone who tells you otherwise is pulling smoke out of their ass.

That's why framing has become so important regarding the markets, because this is not about Bitcoin is about macro environment. We have to be mentally and financially prepared for instability.

This post is not meant to scare people about things they don't understand, they are here to explain people how important are bitcoin, cryptocurrency and non-confiscatable goods like this, so they are a good way to have a plan B for difficult times that are surely coming out way.

Non crypto people are going to learn a very expensive and difficult lesson in the next years about how crypto is important to make a stand to the man.

We don't know about what policies governments are going to make soon, nobody expected to be lockdown for 2 years, and yet everyone went with it.

What's next?

Bitcoin's value is not well understood by people on the market, and not nearly grasped by the normal people. All roads lead to Bitcoin and thus price increase in the crypto markets.

If Feds cause a serious recession they are going to need to stimulate the system. Fiscal stimulation to people take Bitcoin to cash will give volatility to Bitcoin price, if it ever happens.

Political and geopolitical instability leads to inside crisis on these days. How bad can it get for the average person? They are going to need a credit system, they are not going to see real wages and people will no longer have the federal system giving you money for free. This is not a Fed problem it's an actual administration problem and every single country has it.

We are in for a hell of a ride, folks

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This is such a great time for DCAing and building some bags. Yet some of my friends still think I'm trading virtual coins with drugs and arms dealers whenever I talk about crypto... 😁

I've been doing it with as little as I can but I am right now in the biggest crypto position I have ever been in my life!

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Working on that too! 😉

5k and 500k Bitcoin are to possible options

-pulls smoke out of my arse

For me, 100K Bitcoin is inevitable.

Crypto continues to gain a bigger share of the overall market and Bitcoin is and will always be the macdaddy of this asset class.

Inevitable!

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It is inevitable yes, but people must be prepared for a bigger leg down and hodl tight or they'll lose their tokens to stronger whales hands!

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I think, in the long-run, the FTX drama is actually good for crypto, as it draws in more attention. Any publicity is good publicity.

It also paves the ground for DEXes dominion!

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We don't know what will happen tomorrow but it is better to keep doing the right thing by buying low in this present market and see how everything works out

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Keep learning, keep researching and stay long on crypto!

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