Note: the following is not professional investment advice. Please consult an investment professional if that is what you are looking for.
For Americans, who are just climbing out of the last recession now seven years later, another global recession could be disastrous. Unemployment is only just starting to correct itself, and in many cases, people have finally succumbed to taking jobs that pay less than they previously earned. This notwithstanding, the banker cites higher wages as a contributor to corporate stagnation as well as figures that say productivity is at a low.
Also read: Why Bitcoin Regulation Will Never Help Consumers
Recessions are a supposedly natural part of the traditional economy; this cannot be argued. They are not usually global, but when they are, everybody suffers, from the highest income brackets down. Those living month to month with no safety net such as residual income or investment income are hit the hardest because if they lose their jobs they have nothing to rely on. If they manage to get another job quickly enough, it often will not pay the same wages, and then it becomes a question of how far inside their means they were previously living.
The signs are clear that a recession is possible in the near term. Some industries will thrive in any economy, but most require there to be liquid capital to purchase their goods and services. Whether or not you believe your job is recession proof, now could be a golden opportunity to buy Bitcoin. The price is at historic lows, and you can rest assured that if a recession does hit, the wealthiest people will be looking at Bitcoin, buying it up, and therefore increasing the price with unprecedented buy pressure. For them, Bitcoin has only recently become a legitimate-looking investment, with things like the Bitlicense in New York nearing completion, the first Bitcoin bank ItBit receiving regulatory approval, and more than one fund trading in Bitcoin.
If you bought now, and the recession hit, you might see a chain reaction of the price increasing. You would then be able to dump your Bitcoin holdings onto wealthier hands and better survive the recession. Or, for many of the things you need to do, you could simply spend your Bitcoin directly, it having increased buying power as people look to get away from a weakening dollar.
There are many ways to prepare for hard economic times. Unfortunately, in this day and age, saving in a bank is one of the least effective of them. Giving Bitcoin a try might just prove to be a strategy worth your time.
Last modified: May 21, 2020 11:19 AM UTC