The global economy is in shambles. We have suffocating supply chains that are stressed beyond limits, failing fiat currencies across the globe, and the Russia-Ukraine war is seemingly gaining momentum. To top it all off, we are still not done with the COVID-19 pandemic. Many economies that relied on international cooperation and peace, primarily those focused on tourism and logistics, are now suffering and falling apart the most apparent example is Sri Lanka, which turned from the fastest growing economy to a complete disaster in months.

We are on the verge of something terrible and it feels inevitable. With monetary policies of multiple countries facilitating inflation and anxiety, we may go into a deep recession by the end of the year.

Financiers are divided and don’t know what to do

People who voice their opinion publicly do have a consensus that the global economic recession is a done deal, we only have to wait for it. What they do not agree on is how to act right now to minimize losses. Some are saying that it is time to dump stocks and cryptocurrencies. Keith McCullough, the CEO of Hedgeye Risk Management, is one strong proponent of the idea that you should be focusing on cash and real estate.

On the other hand, many think that you should be hedging against inflation by sacking USD and moving your money to Bitcoin and other cryptocurrencies. One of the loudest voices is heard from Canada. Pierre Polievre, the leader of the Conservative Party, stated many times that Bitcoin is a way for Canadians to “opt-out of inflation”.

We need to brace for impact

While experts are debating which is the best way for people to preserve their wealth, we have to hope for the best. For the vast majority of BTC holders, the fallout of the recession will be very favorable if the crypto industry survives the upcoming economic onslaught. USD does not seem like a good destination for investments. Whatever your plan is, start implementing it now when we all still have time to prepare.

Leave a Reply

Your email address will not be published. Required fields are marked *