Financial Crisis 2018

You wake up today and check the news to find out that the stock market has crashed 40% overnight. We haven’t had a financial crisis since 2008. But guess what? Nothing has changed since then. Banks take on the same or more risk than they did back then. There are more derivatives outstanding than ever. The global economy is even more complex.

I just checked recently and the 90 day S&P average returns are approximately -12%. Is this the start of something ugly? Many experts think the gains in the stock market have already been taken.

This information makes me go full contrarian and buy crypto as a non-toxic asset. It literally acts as a hedge against the fall in traditional asset classes. My personal favorite right now is Bitcoin Cash (BCH) which has outperformed all major crypto coins and tokens recently.

What is it going to take for people to jump into crypto? I talk to a lot of Americans and many are unwilling to make the switch to crypto because they haven’t experienced enough pain yet. But when the stock market does correct and some people see double digit losses in a short period of time, they will get a headache. All they will want is to know is where to put their funds that won’t be correlated with the stock market. They will be scared and guess what. It will be too late to run to the exit by then because a lot of smart crypto enthusiasts have been planning for this event for a LONG TIME.

If you have ever seen a chart of the purchasing power of the USD over time, the chart looks ugly. Keep in mind this chart stops in 2013. We have printed a lot of dollars and debased the currency since then. If your investment is pegged to USD, your investment will succumb to the same fate.
USD Purchasing Power

Even my Mother a 65 year old woman has a larger than average crypto portfolio. She has honestly made more profits in a shorter period of time than any other investment in her whole life. It’s actually rather simple for her and there are no stock broker commissions or mutual fund fees.

It might be the time right now to back the truck up on Bitcoin Cash (BCH). There are many forces converging to enable this network to gain in power. If you are wondering how Bitcoin Cash works, it is simple. It cuts out the middlemen. When you cut out the fat, there is more profit potential for Investors vs banks, governments and other middlemen that insert themselves into the equation. By making the distance shorter between parties the potential is great. Even Bitcoin Core with the Lightning Network can’t do this. Why? Because Lightning network has many more hops (aka middlemen) to pay before a transaction reaches its destination.

Luckily, the Bitcoin Cash May 15 upgrade went off without a hitch. Literally, nothing went wrong. This gives me confidence since every upgrade BCH has gone through has occurred smoothly. The many developers of Bitcoin Cash have a proven track record of successful upgrades. Also, if you bought or received Bitcoin Cash at its inception last August, it has gone from about $300 to $1006 at the time of this writing.

I am not a financial advisor and this blog does not contain financial advice. This blog contains my opinion only.

Comments

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