Out Of FIAT And Into Crypto?

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The Forex markets are a little crazy right now as the GBP pound is being crushed against the US Dollar. We are noticing it here in South Africa as the GBP Rand hit 20/1 almost 21 years ago and today it R19.53.

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This shows how badly the Pound is performing even with South Africa having a serious electric power supply problem. South Africa is having an economic crisis and is gaining on the GBP which makes no sense at all.

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Who knows as some suggest the Rand could drop back to the R13/15 level against the $.Maybe wishful thinking as I would not have a clue if it is even possible.

Being British I obviously have GBP and it is important it stays strong for my own selfish interests. It actually wouldn't be that bad if it remained at these levels for a while as selling the second house is a few months away yet. This was bought using GBP back in 2005 and who knows it would be a score to make some of the losses back. That would definitely put me back in the game especially if we can see a sub R15/1 to the USD or GBP.

I never thought I would see the day that the GBP would drop below the US Dollar and they are so close to being on parity now. The one benefit having pounds in the past was it was always worth so much more than all the other currencies.

The one thing I have picked up on is this economic slow down / recession or depression is not going to pass by quickly. In most articles I have read they talk about the worst still coming in 2024 so we shall see a downward spiral for some time yet.

I think seeing all of this unfolding I am super happy being in Crypto building my bags knowing whatever happens when the economy picks up again in the future I will be far wealthier than I am today. Crypto is somewhat looking like a safe haven currently away from the depreciating global currencies.

I think this only highlights the failing monetary system we despise so much and the time is now to take advantage by filling your bags over the next few years and to see how much your portfolio will rise. More and more people are going to be lured into Crypto because of this economic crisis as they have very little choice and cannot keep on ignoring the obvious.

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11 comments
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The forex market makes no sense at all these days. All that is not tied to the USD gets punished, no matter what. The Euro is dropping further and further below the dollar. I guess, the USD is still the reserve currency of the world for a lot of investors… But crypto is a better gamble in my opinion!

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The weakness of the euro is not surprising. It may bounce if the energy situation turns out better than expected. Crypto may have bottomed out but I don't think there is any reason to hurry in returning to the market. Wait and see.

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Not changing my strategy now as I am in the middle of building a decent portfolio. Whatever happens I think all of us who have Crypto will come out of this ok.

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We're looking at a very strong risk-off scenario right now because of inflation. The Fed is hawkish, which causes a tendency for dollars to return home, weakening all the other currencies as well as assets.

This, too, shall pass. Those who have money to spare may be able to nab a few good assets on the cheap. I've seen a few analysts predict that equity markets may see sideways price action for the next 5-10 years and that the next couple years might be painful.

Providing liquidity to stablecoin pairs is probably the best crypto investment right now in terms of expected returns. There is risk, of course. Invest only in stablecoins you understand and have reason to trust.

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I can believe that scenario and there will be opportunities for those that have cash. I am trying to get the 2nd house sold pronto before it is too late. Builders are finishing off within the next few weeks and hoping the market hangs on as November /December should still be alright.

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Dang 2024 yet? That is like two years away. That really sucks. I hope that isn't the case. Ideally they will just give up and let it tank sooner rather than later so we can start building back up.

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That is the scenario many are seeing with the bottom in 2024 and then many years for recovery after that. Could actually be good even though everyone is going to feel the pain.

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The USD gets all the headlines, but it's the other fiat currencies that are getting truly destroyed.

Add my AUD to the mix.

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