Are there any cryptocurrencies in your anti-crisis portfolio?
The coming crisis is being talked about as if it has already knocked on the door of the global financial system. The U.S. is blamed for overheating the market, and international organizations are developing risk diversification portfolios.
The stability of the last ten years has been buoyant and attractive. The October correction in U.S. stock indices reminded us of the short-lived nature of the bull market, but investors are still willing to buy Apple stock near historic highs. And for the securities of the coffee chain Starbucks they give 7 times more than for a share of Ford.
In discussing the impending crisis, analysts often recall the U.S. Federal Reserve's monetary policy of abandoning low interest rates. Next year, the European Central Bank and probably many other advanced economies will employ a similar strategy.
How the global system will cope with the rising cost of credit is still unknown, but in the event of a crisis, cryptocurrencies may become a new tool to combat risk. And here's why.
Cryptocurrency in the share of the currency portfolio
Experts say that the real lucky one will be the one who at the onset of a new financial of the year will "sit in the cache.
This situation allows you to save money and provides an opportunity to buy a lot of cheaper assets.
But which currency to choose? You can take a typical portfolio and include euros, dollars, yen and yuan, but in 2008 the U.S. national debt was 9.9 trillion. The burden has more than doubled by 2018. Will the U.S. hold out this time?
You always have to think of the worst, and so we need to act in the face of a possible total economic apocalypse. The more different currencies are included in such an anti-crisis portfolio, the better.
Cryptocurrencies can be seen as an alternative to gold because they are independent of central banks. In addition, digital coins can already be paid for in stores (but not in gold). So we recommend "diluting" your savings with a small percentage of bitcoin or another digital instrument from the top 10.
Cryptocurrency and the escape from inflation
Another investor's fear is the cheapening of money. Experience shows that not only countries with a high dependence on raw materials, but also more developed industrial and post-industrial states can be subject to rising inflation.
Bitcoin or another digital coin with a limited issuance volume is the best way to mitigate the risk of inflation for the investor. This property of cryptocurrencies is unlikely to be ignored by the market. Even if states ignore it, people will make their own choices.
The story of the political crisis in Zimbabwe in the fall of 2017 confirms this assumption. As a result of a military coup, the president of that African country, Robert Mugabe, was removed from office.
The threat of militarists taking over and restricting market relations has led to a frenzied demand for bitcoin. There has been known buying of btc at $14,000 on the local Golix exchange. At the same time, digital gold was trading at $8000 on larger exchanges.
Total
We do not pretend to be true, but cryptocurrencies may get a second local round of their development in case of a global crisis. If we have seen rapid growth of the industry in conditions of seeming security, then with general depression and distrust of government work, the probability of increased demand for a reliable independent instrument will increase all the more.