High Inflation Is Here To Stay
There is a strong likelihood that when the FED meets again in September, we will be met with some “good news”. As interest rate hikes have continued to attack inflation, combined with lowering commodity prices, there is a strong chance that inflation will plateau. I do however not envision a scenario where inflation returns to 2% or lower, at least not for some time. This “breather” until September is likely one of the strongest catalysts behind the pump in all financial markets, including Crypto. However, I do think that the S&P won’t breach the 4300 mark but expect a sell-off below, or at this level. In harsh market conditions, good news can only take the market so far. This is when the smart money begins selling into the pump.
It Really Doesn’t Matter
Regardless of how much higher markets move it is rather obvious that citizens need to be applying a lot more thought and planning in regard to their finances. No matter where you are in the world, you are not immune from the effects of inflation. However, structuring and building additional forms of income for tomorrow is able to provide protection and shelter from this economic desert storm. This is where Crypto offers such an apt opportunity. Yes, despite lower prices, if you are earning multiple forms of passive Crypto income you are still staying ahead, at least to some degree.
As long as you can avoid using as much of this additional income as possible you are in a good position. Continue compounding within opportunities and into new opportunities. Over time, with the general long-term appreciation that Crypto seems to enjoy, you will begin to see meaningful results. In this way, you are literally creating a defense mechanism against inflation. If you are truly successful this defense becomes an offense and is able to destroy the effect of inflation in your financial life.
Removing As Many Risks As Possible
As I have mentioned prior to the collapse in the CeFi space, lending should not be a large part of any portfolio. Staking on traditional POS networks is a much safer option. Holding tokens such as HIVE and HBD is another smart way to generate passive and residual income. Staking BFG tokens on BetFury has also proved to be a good income generator over the years. If you are holding onto the dividends then you are definitely going to be smiling in years to come. I mean, earning dividends in BTC, ETH, BNB, USDT, and TRX on a daily basis is a pretty good deal, right? Obviously, nothing is guaranteed and safe, that’s the nature of investment. You incur risk in order to earn yield, that’s how the game is played.
Global Banking Crisis
As many have discovered in recent months, even holding your money in a traditional bank account is not safe. So many different countries have experienced “bank runs”, limited services, and even restricted services. The world really is in a bit of a mess. I find that diversification is the only wisdom we have at our disposal that can help protect us in these challenging times. How you may choose to go about securing a “nest egg” that can generate passive income is entirely up to you. I would only suggest that you do it in some way, shape, or form. Things are likely to get worse over time, despite seasons of alleviation. As long as we have a plan and keep working on and towards it, we have hope! Thanks for stopping by! See you in the next one!