Riches Are Made In A Recession

In the lifetime of crypto since the dawn of bitcoin in 2009 we have actully seen what I would call recessions in the crypto space much like we are seeing today with the stock market. However most crypto people call these crypto recessions a simple bear market and that very well can make sense because of the nature of it all.

You see we had a rally to $1,000 way back in 2013 and then a very very long bear market that lasted until 2017 a total of 5 years. From there we had another bull market in 2017-2018 that fueled us to $20,000 an then sold off to $5,000 - $10,000 range and became a 3 year bear market. Then another crazy bull market for a long time in 2021 and now settled back to $20,000. As you can see with each mega bull rally bitcoin and crypto in general has found a new baseline. This is the normal trend of adoption and I believe this bear market is going to be much shorter than pervious ones as adoption of crypto continues to become more and more mainstream. In fact this could very well be one of the last long bear markets we see for a while.

Looking at this my numbers would put us at hitting $100,000 - $120,000 in bitcoin value in the next bull run on average (that means not a quick day spike but instead holding there for a few days or weeks) and if it does hit a new bear a year or so after a new steady price of around $35,000 - $40,000. Those are my own personal predictions based on the history of crypto and the markets. I pretty much figured we wouldn't hit $100,000 for bitcoin people where getting crazy at that point lol and market it max $75,000 and I wasn't far off.

Stocks

It's clear that the stock market is another place to make serious riches during a recession and right now those stocks are getting slammed. While most expect stocks to fall another 20% now is a great time to start dollar cost averaging into stocks you believe will make it through the recession and come out on top after it's over. This will allow you to grab up stocks for huge discounts and cash in later. Dividend hungry stocks are also great options. A dividend stock paying 6% today could end up paying you 12%+ in the future after that stock rallies and the company increases it's dividend payment. For myself I mostly focus on REITs as dividend builders.

Cash or Stable Coins

This is going to become a hot area here very soon. Most look at holding cash as a waste because of inflation at 8% and most banks paying you 2% you're losing 6% of your buying power this year or more by simply holding on to cash!

This causes many to invest however with falling stocks, falling crypto etc stablecoins could be a good place to store for now but also to invest on those big sell offs for possible long term earnings. Normally what happens is the interest you earn on your cash in the bank or stablecoins is invested into these other assets in a dollar cost averaging style. That way you're not touching your core assets and instead your growing assets while holding your core value of cash. The worst case from this is you don't get your 2% back and the stock or crypto falls to nothing. It's one of the lowest risks and high gains possible but you do need cash capital to make meaningful moves here.

The other thing is the USD is actully increasing in mega value compared to the rest of the world. At the end of this global recession we most likely will see the USD stronger than ever compared to other countries and the United States has been making serious moves lately to make that happen.

Is The Bear So Bad?

Many look at a bear market as a bad time and for some reason pull back and stop investing, stop developing and stop advertising. When in fact this is a key moment for any business that's small to double down and investors to grab up stocks at a discount.

This is because during a bull market only the largest of companies are able to afford marketing while smaller companies put up high risk to try and run a marketing campaign. During a bear market marketing becomes far less expensive, competition lessons and presents opportunity to smaller companies to grow.

As a investor you also have the possibility to find these smaller complains putting in the work that could have very real potential of become a major player when that bull market comes around.

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