You Can Only Avoid Reality So Long
Many global citizens have had to extend their debt to income ratios, perhaps not if you are located in the US. Joe seems happy to pay citizens to stay at home and further encourage the “Great Resignation”. I am going to do my best to steer clear of politics and conspiracy theories here, although it is quite difficult. It is basically impossible to divorce the financial world from the political world. Currently, we are experiencing many in our country using 65% to 75% of their income to finance debt. This includes mortgages and vehicle finance but doesn’t leave much for anything else. What happens when there is not sufficient remaining for food, insurance, fuel, and other daily living expenses?
People are currently overextended in debt because of this very dynamic. The money runs out before month-end and daily expenses still need to be paid. It’s just an ongoing snowball effect unless addressed with severe and disciplined measures. This is where Crypto enthusiasts are beating the “debt effect”! Instead of seeking out more credit, they are applying themselves in the “Incentivized Economy”. They are avoiding debt by simply extracting value from the Crypto economy. This is very much a new form of income generation. The principles that are driving the wealth creation in Crypto are not really seen working in any other sector of our current economic model.
The Buffet Perspective
This Is exactly why investors like Warren Buffet are unable to process and accept Crypto as a legitimate asset. They do not see the dynamics at work anywhere else and therefore reason that if it has not been seen before, it must simply be a scam. This and the fact that by discrediting Bitcoin and Crypto in general, he is protecting his legacy-styled empire. Many have thrown in the towel on conventional employment to rather build in a new economy. This is to them more valuable and is actually meeting their monthly needs.
The traditional mindset keeps the majority enslaved in an economy that is busy dying. This is not a biased opinion from a Cryptoneur. It is fact. A prosperous economy will ultimately support the needs of those who contribute to it. Unfortunately, the stock market is often used as a measure to determine the economic climate. There is no measure of reality in the market and it has been that way since before covid, which only served to intensify this reality.
Why Did This Happen?
Why were listed companies reaching new all-time highs during this pandemic, while simultaneously being bankrupt? The simple reason is that there is no longer any real correlation between the market and the activity of the company the market represents. Obviously, there were those who did happen to prosper because of what took place because in some ways their design or product lends itself to the new economy. How long can this disconnect exist between true valuation and market valuation is the question.
Besides, if so many are increasing their debt to live, I doubt whether they have excess capital for investments. It is largely the wealthy who are exposed to the markets and real estate. The average global citizen is working less and earning less, definitely not the signs of an economy on the right path.
Inflation Will Increase
Despite momentary relief, inflation will ultimately increase. A global workforce already struggling and maxed out in regards to debt is in a very dangerous place. A position that many in the Crypto space are perhaps also experiencing. However, they are offsetting this by utilizing all the amazing opportunities that Crypto has to offer. Those who are aggressively giving of their time and effort are experiencing results that are actually even more impressive than they had even hoped.
I have personally seen my efforts in certain areas outperform my expectations. This just serves as an encouragement to raise the bar and reach higher. Any way you choose to look at Crypto and the “Incentivized Economy”, the early bird always gets the biggest worm.
The Power Of Desperation
There are those who have been busy because they see and understand the potential. On the other hand, there are those, who due to circumstance will most likely begin taking part in this new economy, which works rather differently from the current system. One might argue that due to it being early days, partakers are experiencing an exaggerated success. Perhaps so, dilution will always play a part in any model, which is why early entrance is vital.
The amount of stories I have personally seen on multiple Crypto platforms is staggering! So many lost jobs, or were locked down without many options but the internet. This is where so many realized the opportunity that was on offer within the Crypto economy. The rest is history, as they say.
The Twin Catalyst Of The Incentivized Crypto Economy
Not often does one see the adoption of an idea due to two unique motivations. Firstly, as previously mentioned, those who have identified the massive potential that Crypto offers are already working and building away. Then there are those who through financial constraints will seek out alternative ways to generate additional income. This could happen on quite a large scale, once word really gets out in regard to the enormity of this opportunity. The network effect can then truly kick in, ultimately bringing additional value to the entire Crypto market cap, especially sectors such as Web3 and ecosystems like Hive.
I believe that it is just a matter of time before things really get out of hand within the Crypto space! Global issues and challenges are literally channeling society towards a Crypto-empowered lifestyle. Obviously, those who build now will be the ultimate winners here, which is why time is of the essence. Lately, I have been really aware of the urgency that I am sensing in regard to Crypto. The window of unparalleled opportunity will not remain open for much longer.
Thanks for the visit, keep grinding and ignore the noise!