Tuesday, October 11, 2022

During recessions, crypto and stocks are considered high-risk investments. Most recessions after 1929 were "engineered" to be short (like 2 years, max) with intervention by the Federal reserve. If you can stick it out, you should have good returns.

There's a lot that I want to say here, but in reality I think that just by posting this video and then leaving you guys to your own interpretations of what could happen in the next 2-4 years is more entertaining. I'm also going to leave you guys with my own advice below: https://www.youtube.com/watch?v=IcknsvEgRck (this is NOT my video, but gives you perspective on how long we could be in a recession / bear market)

You're going to get impatient in the next year or two, wondering how you can increase your holdings. The best thing I can tell you is, "don't get greedy" and "Don't get impatient". Just continue to stack whatever reliable project you think you can.

My own two cents: this could be like the end of the dot com boom where we saw a bunch of websites that didn't survive collapse (like broadcast.com, look the history of that one up if you can) getting replaced by YouTube when it was created in 2004 or 2005.

I also want to remark that the first time I can remember any "geo-political" events taking place that impacted crypto prices was the China trade war in 2019. Once that was declared, bitcoin went from like 6000 USD apiece to 8000 USD apiece. The second time I remember geo-policial events was when Xi Jinping said "blockchain" and bitcoin skyrocketed from 7k to 10k in October 2019. I was also there for the covid crash, and on that day it felt like "The end of the world." for every single market out there - not just crypto.

If you have the money, if you can afford the losses, and if you won't be mentally scarred by it, then just continue to dollar-cost average responsibly. I personally think another big leg down is waiting for us, but it will be a curve ball that almost nobody saw coming.


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