You Need To Plan What To Do With Your Crypto, Because This Time It Is Different
The world is breaking down! Everything is coming apart. The monetary system is collapsing. Riots are coming. Coops, civil wars, revolutions and Balkanization.
Delivery of goods from China could end at any moment!
Oh the horror!
Although all these things will be happening, it is usually a much slower, and long lasting process.
So, there will probably be only a bunch of riots and city burnings after Trump wins this election.
But Xi is chomping at the bit to take over Taiwan. We have to defend Taiwan, because that is where all the expensive chips comes from. No more compys for the world. But don't worry, the 3 gorges damn is going to burst, and take all the king's horses, and all the king's men, so they won't have much time to invade Taiwan.
Really, all this doom writing is about is to get you in a frame of mind to make choices.
What are you going to do with all that crypto wealth?
I know we were all promised Lambos, but it is really time to look at buying a tractor instead.
Fortunately, Lamborghini makes tractors
Plan for changes: Housing
Three or four years ago people were really into buying a house. And house prices went higher and higher, seemingly without end. Mortgage rates were low, everyone was lending.
But now, mortgages are hard to qualify for, and few are even trying. Mortgage rates are (relative to before) high. House prices still haven't adjusted to the higher rates.
And, starting now, but really to be seen in the near future, we will see a housing crash that puts 2008 to shame.
This crypto bull run will see many people with enough crypto to buy a house. If this was four years ago, that probably would have been a good trade. But, will it be a good trade now?
The answer is, over any length of time, it will be a bad investment. However, you need somewhere to live.
You will be trading good cryptos for a house that will be dropping in price. I would just assume the house will not be sellable in the future. That stated, how much is rent? Some places you can get a house for less than accumulated rent. And how much is having a house that the bank and the landlord cannot kick you out of? (still got to worry about the govern-cement. I'm looking at you Gov. Nuissance) There is so much (non-monetary) value in the owning outright of a house.
The most important thing to me in this type of decision is, can you grow food there.
Plan for changes: financial
Sure we will see bitcoin go UP over this next year, and if bitcoin plays out its four year pattern, it will crash afterwards.
So, you could sell at the top. But what would you sell into?
The financial institutions are collapsing. Troublesome banks are being taken out. Next is small banks all over. Then it will be medium sized banks.
Leaving money in the bank is getting more and more dangerous.
If the banksters do this like they have done before, there will be little if any warning. All the press will be saying the banks are all solid, and here is this nice, higher interest rate on savings accounts. And then, the banks close Friday, and haircuts begin. Your money is gone. They usually replace it with something, like the "new Peso", but it will not be as valuable. It never is.
So, if you convert your crypto wins into "cash", you could lose everything. (bet you now wish you blew all your crypto on a worthless house?) Even the stable coins are going to have problems. And even if they don't, we are looking at inflation eating half your money over four years.
The problem is the timing. I always see way too far out, and we may be good / just fine for the next four years. The four year bitcoin cycle plays out normally and you get out at the top and buy back in at the bottom. However, it may be now, and you sell out of solid money, and buy into money that goes poof.
I suggest a plan to move into physical assets. Silver, lead, food.
Plan for changes: stuff
World trade is breaking down… that is not quite true. It is more that people are not buying as much stuff, and this is sending shockwaves back through the system, and this is causing many things to be not as available. Which is causing shipping to break. Which means, things might not be as available over the short run, or not available at all over the long term.
What stuff do you need?
Stuff that you will need in the future do not just go away when wall street crashes, or the banksters play their games.
Guns and ammo will probably go up in value. They have consistently gone up in price, especially as more "gun control" talks have taken place.
If any of the bankster shenanigans happen, gold will skyrocket. Silver will be even more valuable. Not just as a precious metal, but a metal that is precious for the new technology that will be coming out.
Tools, if you know how to use them, are always useful. And, as the recession accelerates, there will probably be lots of people wanting to sell everything in their garages.
Toys, they will be giving them away. If you want boats, cars, motorcycles, they will be on sale. The recession kicks in and these will go even lower. If you have some toys you want, look to trade when cryptos are high.
If you use it, buy as much raw materials as you can store. If you use it, you will always find need for it. If you don't, it may be hard to sell, and may just rot as less people are able to pay for work and repairs. So, not a good investment, if you don't already use it.
And, of course food, but that stuff rots.
Things are already breaking down. The observant are already reporting on it.
So, along with becoming much richer over the next bull run, you will also need to make different plans on using the money.
Something like, "You can finally buy a Lambo, but there are no more roads to drive it on."
Not just a little course correction in your plans, but a massive change and re-ordering of priorities. And you will probably need to change a few times as the world changes around us.
Use this time to choose what you really want, the future you want, and trade your cryptos at the top for the things you need/want.