IS THIS THE BEST WAY TO KILL INFLATION ?
How much return are you getting on your savings in the bank/ investment programme and how risky or volatile is that? Most savers are looking at 0.1% and less. This does not allow us to maintain our purchasing power of our money!
By the time you read this in June (written May 12th), we should all now be very aware that the global markets have gone through a meltdown. This is thanks to the macro economic uncertainty, where supply chains, excessive, and uncontrolled money printing, the Covid crash, and the escalation of the Ukraine/ Russia war.
Those who have been reading my articles over the past year will be only too well aware of how bullish I am on the longer term prospects of crypto currency. As we know crypto assets have not been immune to this market sentiment being so fearful, and these too have suffered in this downturn.
However, those who took my articles on board will be enjoying at a minimum an 7% APR return on their stable coins through the Celsius exchange network. This yield paid weekly at least limits to loss of the value of your savings when inflation figures in Spain are running at almost 10%
All of us have seen and are witnessing huge shifts in the global economic environment where the Covid virus led to lockdowns and massive government printing of paper money to shore up the global economy while the virus played out. We now have the perfect storm where ordinary people are being decimated financially through raging inflation.
In the same way that we all have to budget according to our income and not continue to spend while racking up enormous debt on credit cards, so too should governments around the world have taken a similar approach.
This simple concept has been ignored ever since the early 1900’s where fiscal discipline has been largely ignored.
The “can” of Government debt, has always been kicked down the road with more and more money printing and more debt in times of trouble.
These debts have become unsustainable and the USA is now effectively insolvent. I suspect we shall see this in Europe too in the not too distant future. Meanwhile although the Dollar is very weak in terms of its buying power the Euro and GBP is even weaker and losing value even against the current global reserve currency the US dollar!
The status of the USD as Global reserve currency has been in the place since 1921. Most other Global reserve currencies have had this status for around 100 years.
Since 1450 there have been six major world reserve currency periods. Portugal (1450–1530), Spain (1530–1640), Netherlands (1640–1720), France (1720–1815), Great Britain (1815–1920), and the United States from 1921 to today.
I believe the time has come for the USD to lose its status as the Global reserve currency as just like all the other Global reserve currencies it is fundamentally flawed thanks to the incompetence fiscal programmes that each government in turn had put in place.
Could the next reserve currency actually be perfect money, like Bitcoin?
The dollar value has risen over the past 14 years since the last crash in 2008 and is long overdue a correction down given the huge debt the USA is now saddled with. Once the Dollar comes down only then will we see a massive rise again in stock markets and of course Bitcoin.
One good thing to come out of all this mayhem is Bitcoin. This is exactly why Bitcoin was created after the last 2008 global market meltdown.
I anticipated this last Autumn so managed to move my pension fund (these have since been seriously hit) to mainly cash. This way once the markets have bottomed I will switch back to equities ready for the next run to the upside over the coming years until we get the next overbought dynamic rearing its ugly head once again.
Bitcoin was designed to have a maximum limited supply of 21 million coins which are divisible down to 1 cent. This supply will not be increased unlike the Euro. Every time the printer is turned on we get more inflation and rising prices means we are being taxed on our Euro’s every day we hold them through the loss in their buying power value.
Every 4 years the supply of Bitcoin is halved meaning that less and less coins are available to buy over time. This halving is May 2024 and this date will be when the price of Bitcoin will likely move up just like every occasion before.
Between now and then I intend to continue to buy Bitcoin at these bargain basement prices (accumulate) so when the markets turn around we have an entry at the lowest possible prices to maximise the profits once things settle down.
Remember when there is blood in the streets you buy even if it is your own blood.
At the time of writing this Bitcoin has dipped to $27000 per coin from its November high of $69000.
We need to look at this as a golden opportunity to secure our future now that Bitcoin is adopted globally, not only by big institutional players but by private individuals eager to de peg themselves from the misery of the traditional financial and banking systems.
Regardless of how far down Bitcoin eventually goes (possibly the low $20000’s), the fundamentals of Bitcoin remain as sound and relevant as ever, especially in this madness of global uncertainty we all face.
Two countries have adopted Bitcoin as legal tender and others will follow. USA and Canada and many other countries including Australia have already endorsed Bitcoin futures ETF (electronically traded fund) just like other stocks.
So if you thought you could not afford that shiny Gold or diamond ring priced at $69000, if you saw the very same ring in the same shop on a special sale offer price at $27000 would you want to buy in then?
This is the mentality we need when buying any asset as sadly most people join the buying frenzy when prices are high through Fear of Missing Out (FOMO).
With Bitcoin yield also at around 3% APR on the Celsius exchange, even if Bitcoin hangs around at these prices for a while at least you are getting some yield paid out every week on your investment. Then once Bitcoin does take off again you will be in the forefront of what I would consider to be the biggest BULL run we have ever witnessed in Bitcoin.
The traditional financial and banking system is all but over. Crypto is here to stay and Bitcoin is the store of value we have all been hoping for.
I am not a financial adviser and have been researching finance independently for several years since the 2008 crash, but in my view we are on the cusp of the best opportunity we ever had to gain financial sovereignty from the shackles that the Euro/GBP /USD has held us in for so long.
For my free EBook on how I am approaching investing in this exciting and widely adopted space then please email me
If you want to join the Celsius exchange now, then use this link and then we will both get a $50 reward for signing up and depositing $400 or more and holding it for 30 days.
The referral link to Celsius is here…. https://celsiusnetwork.app.link/13062143e7