Thriving With Cryptos In A Recession

in LeoFinance2 years ago

Is it possible to thrive in a recession?

In my last post about this topic I argued that crypto gives us the ability to thrive rather than survive in this world. With that said, the current political and economic global situation is quite dire at the moment. We are faced with war, supply shortages, inflation and a recession just to name a few. This is a global situation - it does not matter where you live; if you are connected to civilization you are feeling at least some ramifications. But it is also worth saying that they are quite unevenly spread out in the world: some countries or regions are much better off than others. To take Europe as an example, if you are living in the Ukraine you will feel the direct consequences of war, but even in France or Germany we feel them at least indirectly. I think for the first time people under 40 here in "the west" are now experiencing off the chart inflation as well as some more serious inconveniences such as not being able to buy flour or oil. But still they are only inconveniences; the situation in some other countries is much more serious in comparison.

But this recession/global situation is different compared to previous ones for at least one reason: cryptos. They haven't been around in the last one. Well, Bitcoin rather was bron out of the last recession in 2009. But things already started to improve back then. This time cryptos have somewhat matured (with exceptions like the LUNA debacles) and they are much much more widespread than back then. Nevertheless, people involved with cryptos are still very early to the game. We can compare crypto adoption to other novel technological revolutions which all followed a similar path:

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I have come to realize that one of the true strengths from cryptos comes from passive income. As they are very volatile (but decreasing with time), it is quite possible to lose much value (measured in fiat currencies) in a short time span. But if one takes the approach of building and "hodling" in both the bear and bull markets, the income generated from cryptos can be life changing. That is at least when one is involved with projects that offer a return on investment, an APR for simply holding a coin. For Hive we get about a 35% APY currently. That is quite a lot.

The benefits to this is that it is a stable income on which one can count on. This is important as the coins themselves are unstable. Previously I made a chart that exemplifies this.

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A personal example

My personal financial situation has actually somewhat deteriorated compared to last year. I lost my fairly well paying job and am now receiving social benefits which allow me to survive. This isn't a great situation to be in, but I am thankful that I at least receive some income from the state for a limited amount of time. But if I take my crypto holdings into consideration, my situation looks quite different. My Hive stake as well as some other projects I am involved in provide me with an additional varying income of about 800€ a month. This is income that I did not have in the past and I would not have if I weren't involved with Hive. This enables me to actually thrive rather than survive!

This is especially the case when everything got more expensive this year. The official inflation of about 8% is much higher actually. Already the food prices are up 30-50% here compared to last year! I would honestly be living in poverty if it weren't for my involvement with cryptos.

So, is it possible to thrive with cryptos in a recession? Yes! But it is not simply by being involved with them; one has to do some basic research first. Is the project I am involved with "healthy" (ongoing development, strong community etc.)? Is my strategy sustainable (diversifying investments, making passive icome etc.)? Do I have a long term vision?

If so, you should be well equipped to deal with an unforeseeable future...

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A bear market opens up huge potential in terms of being able to stock up and get in on projects you wanted to before but were to expensive. A bear market is the time to act while a bull one is a time to sell.

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exactly! took me a while to get that as well :)

Your use of charts is so exceptional and screams quality. It's so neglected how much charts and good representative graphics add to the quality of a content.

I really enjoyed the point you've made here. Thanks to HBD, we can boast of such returns and exponential growth overtime in a system synonymous to volatility.

thanks for the kind feedback :)

Welcome mate

I have come to realize that one of the true strengths from cryptos comes from passive income. As they are very volatile (but decreasing with time), it is quite possible to lose much value (measured in fiat currencies) in a short time span. But if one takes the approach of building and "hodling" in both the bear and bull markets, the income generated from cryptos can be life changing.

That's the best idea to be sincere in order to be successful in this crypto space is be able to get the knowledge of the blockchain. When you are able to trade both bear and bull market with understanding you are likely to make it in a long run.

trading is still pretty hard, I think like 90% make losses on it. So don't forget the passive income ;)

That's truth though

I'm happy for you that your crypto story is a good one and the results you're having is that beneficial. Even though people can lose or be temporarily down due to crypto's volatility the fact remains that the opportunities to make good sums and thrive is greater than the past. It's best for those of us on hive and other platforms where one can earn crypto without much risks.

Cheers to better days, man 🥂

Posted Using LeoFinance Beta

I really think that crypto can be liberating and lead to abundance for everyone even when you start with $1. It's just dependent on the right mindset and investment. But that might be easier said than done (I know from my own experience!)

This is impressive. I'm new to Hive and am in a similar situation career wise. Still wrapping my head around this on the Defi and HBD staking interest. I want to be able to achieve a similar passive income.

Then I think now you should be in a really good position to build your stake in projects that you think have potential! Building in a bear market/recession is key! If you have a bit of extra income you can spare (I know this is hard), but even $50 a month can go a long way. Hive is probably going to stay around 30-70 cents in the near future, so it could be a good buy. If you don't have fiat money to spend, then just keep blogging and staking Hive/HBD. There are also many other projects on Hive which are worth checking out (the biggest one being Splinterlands).