Where Are You Going To Go?
The latest rate hike by the fed has markets in a tissy, the stock market is down, the bond market is down, the bitcoin and shitcoin market is way way down and people are freaking out. The only thing that seems to be holding up is commodities and real estate, but these aren't markets most of us look at when it comes to investing that odd spare change, they are big plays.
So my question to you is if you have a $100 bucks to spare, and you want to save it long term where are you going to go? The obvious choice for me is bitcoin, and I am picking up cheaper sats and over fist.
People call me crazy, how can I be down nearly 60% on an asset and still want to buy more of it. To the normie it makes no sense, but to me, someone who looks at my options, it makes perfect sense.
I feel that other asset classes are breaking under the strain and the only insurance against that is bitcoin.
Interest rates are range-bound
Yes the 50 BPS rate hike hit the markets hard, and stemmed asset inflation, which the hope is that it would stem inflation in the CPI and PPI, which remains to be seen. The thing is the Fed doesn't have much more room to move, 25 BPS or so is really all they can give.
The US is so leveraged that they can't pull off a 5,10, or like Russia did earlier this year a 20% increase, this is it, once the markets bounce back, of which it will, they are going to have even less room to force down prices.
The debt load and interest payments would be far too high, so I think more inflation will be coming long term.
Inflation at all-time highs
At this point it's really no point in considering the inflation rate of other fiat currencies, we all focus on the dollar, the dollar is the flight to safety trade. You can see that in the way it is strengthening versus other fiat currencies.
However, inflation prints are out for April and we're sitting at an inflation rate of 8.5%, so sure you can hide out in USD but you're still bleeding purchasing power in the process.
Stablecoin risks
Now you could go out and risk that capital in the stabelcoin market to try and cover that inflation loss, but as we've seen with Terra/Luna?UST the stablecoin markets can unravel very quickly and you can be stuck holding a bag of useless tokens.
Inflation doesn't happen overnight
People often ask me how can bitcoin be an inflation hedge if it'ts going down during an inflationary period. But markets don't react instantly, it's a slow process.
Inflation is so evil because by the time it comes, the cause is not obvious. The time delay between its cause and effect are why politicians can get away with doing it.
— Jimmy Song (송재준) (@jimmysong) May 9, 2022
It's' why governments can get away with so much theft and why people can make bad decisions without it impacting them immediately, it's a time delay of economic reality and pain.
My thesis is we have more pain coming, so I am stocking up on all the insurance I can while I can.
So ask yourself, where are you going to go?
Have your say
What do you good people of HIVE think?
So have at it my Jessies! If you don't have something to comment, "I am a Jessie."
Let's connect
If you liked this post, sprinkle it with an upvote or esteem and if you don't already, consider following me @chekohler and subscribe to my fanbase
| Ways to spend your bitcoin | Deposit $100 & Earn $10 | Earn Interest On Crypto |
|---|---|---|
 |  |  |
Posted Using LeoFinance Beta
When BTC is down It’s a happy moment for me as well. This is my opportunity to build by stake. Buy more cheap sats and accumulate as much as you can 😎
Keep it steady mate, don't buy it all at once, we want to acquire as many sats as possible at the cheapest price, that's why we dollar cost average
100 dollars is not too much money to consider it as something promising, of course, if you do not buy a LUNA coin with it at a price of five zeros after the decimal point and sell it for three zeros after the decimal point, or something similar, which in soon be able to double, triple your investment. I would go and buy a few sacks of sugar and wait until harvest season, I'm sure I'll double that in the next three months. or by buying vegetable oil, against the backdrop of a food crisis, this is a good investment that will bring, if desired, income.
Posted Using LeoFinance Beta
$100 in purchasing power in today's terms is more than most people on the planet have saved right now, and I'm not just talking about poor people, there are plenty of middle-class people who are sitting on negative equity because they have liabilities like homes.
You are now making a case for trading, trading is an active strategy it's a job. I am making the case for where you hold it without needing to chase an exit point.
Of course, you can profit from supply chain breakdowns, it's going to be more popular as things continue to break down. He who holds food and energy are the king makers
I said this based on the fact that I will receive these 100 dollars from the crypt, since I have no other sources, therefore, the crypt, in this case, is the engine of active trading, start-up capital.
Posted Using LeoFinance Beta
One of the things I’m trying to figure out is when I do get to my bitcoin goal, what am I going to do with it lol. I know hold it but how can I hold it to make money off it without worrying that it’s going to get stolen is the question. Smart contracts yeah but one that doesn’t expose it and risk me losing it.
I’m buying bitcoin all day baby! I’ve tossed a few dollars into some of the other shitcoins like Ethereum just to even my stake off, I’m totally number biased and like even numbers. Eventually I would sell my Ethereum but the price isn’t at where I want for that to happen.
Posted Using LeoFinance Beta
I also thought about that once bitcoins price appreciation isn't as massive as it is now where jys holding it has you crushing traders and so far this is what I see
Lightning pools and routing nodes, you can earn fees by proving capital to route payments
Multi-sig backed loans with something like HODLHODL you'll earn in USDT but because it's on liquid you can atomic swap into bitcoin for like 0.06 a transaction
But for now hodling is the plan, here we getting rekt by the dollar its going full miley Cyrus
The only way inflation stops in its tracks is when interest rates exceed the rate of inflation. It's going to be a crash landing no matter what, so we may as well get the interest rates to match the inflation rate as soon as possible. It's going to suck hard no matter what, so let's just get it done and move forward from there. At the pace the Fed is going, it will be years before interest rates catch up with inflation, so but then things will be far worse than they need to be.
For USD 100, going with BTC is a good move. An alternative would be USD 100 on a cryptocurrency that's down on its luck but has upside otherwise. For me, that is CUB. It reached its ATL nearly 2 weeks ago, and word from Khal himself is that after features of POLYCUB are tested and proven they will be retrofitted to CUB. For me, I'll get more out of USD 100 by spending it on CUB auto-coumpounding in a Kingdom at Cub Finance than on BTC.
Posted Using LeoFinance Beta
Yeah I don't see that being a reality, I think the gap between inflation and interest rates continue to widen, they can close it short term but long term I can't see it reverting without blowing up the debt markets
Cub is down -98.8% from its all time high in nominal terms, in real terms it's even worse, just becaus something bottoms out doesn't mean the upside potential is higher, it can fall a further 100% easier than it can go up 10000%
No shade on Khal but i am not going to risk my purchasing power on the hearsay of anyone, that's trusting someone else, I trust no one I want to verify everything myself
The only prediction any of us can be 100% certain about becoming real is pain.
I got into CUB very recently when it was already "low"; I just didn't expect it to fall as low as it had. For me, I'll break even sooner than most people. I'm not expecting anyone to join me, and I understand why.
What details do you look at when you do your verification? What math do you do? What resources do you use? BSCScan and CoinGecko seem like the likely places, but then what am I looking for as indicators beyond the obvious? Historical data and candlestick charts go so far.
Posted Using LeoFinance Beta
I'm not one to speculate on capital flows its jus astrology for dudes who think they can achieve wealth without work
Exactly. I'm still stuck using The Force in undirected ways, and that doesn't work out well. I thought you had a more systematic set of indicators you're satisfied using which guide you in your decision making. I'm not even asking about technical analysis, but something more useful than "5 days closing higher."
Posted Using LeoFinance Beta
You can look at order flows, 24 hour volume, so you can manage your liquidity on different shitcoins, the case is you still racking up taxable events every time you making trades so you just creating more liabilities that build a hurdle rate very few can outrade, unless they know how to offset their losses which requires some accounting tricks, which again costs money to get done.
OK, I can begin with order flows and 24 hour volume. I hate paying gas fees, never mind making trades I don't have to make. I make my buys periodically to HODL. When the time is right, I'll take profits as needed; otherwise, I keep the principal as a HODL. Thanks for the clarification.
Posted Using LeoFinance Beta
Buy low sell high!!?? I am going.... well, i do not know where i am going! But, i do know i am here now!! Lol :)
Posted Using LeoFinance Beta
I don't have the skill to be able to factor in how to buy low sell high, cover the tax liability and still make a profit when you're dealing with one unit of account that continues to debase at variable rates, so I just buy and hodl bitcoin
Buy Bitcoin .. claim Bitcoin MYK free and put your money away and set it and forget it, lol.
Posted Using LeoFinance Beta
Yea i listen to him..i just kinda feel like it's easy to make sense to smart people but how do you save dumb people from themselves of course if you're a human who doesn't care it doesn't matter but i kinda like people, lol
Posted Using LeoFinance Beta
Been picking up a little bit of SATS here and there but I am more after Hive when dipping under $0.50. Have enough Au & Ag. Maybe I would pick up some more 25year shelf life foods.
Posted Using LeoFinance Beta
Well the outlook in your neck of the woods isn't looking good, I just saw this tweet today, I think XAU, BTC and food are solid bets, if you can secure some energy too you're golden
Yep, I expect my country to be among the first of the dominoes to fall.
I got an 2021 Electric car that I can sell for more than I bought for last year. The payments are easily manageable since I paid off the Home Mortgage and I spent no more than $100 of electricity on 6,200 kms of driving.
Most major market are red which is something that keeps many people worried and inflation now makes it worse but in every situation there is always something good about it and for this it is the opportunity
Posted Using LeoFinance Beta
Lol Seems like you've seriously swallowed the bullshit marketing of the shitcoiners, good luck with that, you're going to get rekt, of that I AM 100% Sure, have fun learning the hard way
Leaning is part of the process man.
Posted Using LeoFinance Beta
Then I guess reading my posts is a waste of your time, because I can tell you've learned nothing from them
DCA into Bitcoin and Ethereum.
Posted using LeoFinance Mobile
Lol seriously? Why would I want to DCA into ETH, a token that is 70% premined and the coin has been dumped on noobs for 5 years now.
Eth has lost 54% of its value versus bitcoin so if you did DCA into it, you would have lost half your money vs just DCA into bitcoin
Charts don't lie
This is why I said DCA into both. Bitcoin is obviously the safer place to be. Ethereum has made me a ton of money and has a lot of potential for upside toward the end of the year. It's not about the short term.
Posted Using LeoFinance Beta