With a black swan event is upon us – an unpredictable event that forever alters the way people think and behave – are crypto and altcoin holders prepared to potentially go down with the ship if the world faces the worst economic recession yet?
Crypto Op-Ed: Are Altcoin Investors Mentally Prepared to Go Down With the Ship?
There’s no denying, the world is in chaos – more so than ever before.
Debt has been soaring for decades, banks and lenders are overextended, corporations are being crippled due to the lack of cash reserves, and nearly every major market is in turmoil over the impact of the coronavirus.
Not only is the pandemic rapidly claiming the lives of innocent people across the globe, but it’s also causing devastation to their income, job security, savings, retirement funds, and investments.
Few industries are currently safe from the current locked-down environment, and even those that are typically recession-proof are still struggling as the economy tries to stabilize amidst a complete disruption of growth and production.
With incomes dwindling, job losses reaching tens of millions in just two weeks, and assets plummeting in value, it has created a liquidity crisis as investors everywhere seek to sell of any liquid asset into cash in preparation for the coming storm.
The first assets to go, are always the riskiest. And with investors dumping even gold and other precious metals during the current disaster, things are looking bleak for the high-risk asset class of cryptocurrencies.
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Rewind to 2017 during the crypto hype bubble. Unemployment was experiencing the lowest level in years, salaries became bloated as a result of a surging economy, and the stock market surged.
Money was in abundance, and investors had excess to risk in speculative markets like crypto.
Investors flocked to the crypto market after learning about Bitcoin’s meteoric rise from being virtually…