Financial Idiot 020 - (Crypto)(Fiat) Winter

This Blog Post was originally distributed by the Newsletter "Financial Idiot". You can find and subscribe to it here.
DISCLAIMER: I'm an idiot and this isn't financial advice! You can lose money when investing, and you should never invest money you don't own or you can't afford to lose. I'm not responsible for your decisions!

Welcome to the second to last Issue of the year. I thought about what to write about, considering the large Bear Market in the Crypto Space and the "traditional "Fiat Space. I'll also admit that I'm writing on Monday again, the day before release, instead of a few days early, but whatever. :)

Let's start with the crypto market. This year had quite some downturn after the massive Bull Run we had last year (all-time highs hit in November, if I remember correctly). Terra/Luna collapsed, and with it, a bunch of other projects went downhill.

That collapse led to a giant shudder through the whole crypto industry. One after another project collapsed because somebody got money in Terra or borrowed money from someone deep in Terra.

Months later, we are still down a lot, and just recently, a significant exchange (FTX) collapsed, taking a large set of projects down with it. I felt reminded of the Mt.Gox scandal from what felt like ages ago.

The whole market is shivering again, and everybody wonders which project will fall next. If another significant exchange breaks down shortly, all others will go with it. Too much distrust has been spread, and even the simplest investor knows decentralized exchanges are the way to go.

On the fiat side of things, we are also down a lot. If I remember correctly, the year started relatively well as the COVID-19 pandemic finally looked like doubling down on its killing efforts. Then one of the worst things happened as the war in Ukraine began. Besides the weapon manufacturers, nobody won the battle on Wall Street (well, you could also argue people selling gas and oil won, but at what price?).

Money doesn't stink and although the war is shit as hell (sorry for my language), know it seems like a good time to buy into the market (again, no investment advice!). But on the other side, considering the colossal inflation this year, we might slip into a significant recession next year, which would dump the share prices even more. I don't want to even think about what would happen to the crypto market in that case.

Nobody can predict the future; if somebody could, they would probably go to jail for insider trading. :) So let's hope next year gets better than this.

In the next Issue, we will look back on this year's Issues and some Newsletter statistics. It is the last one this year and will be released just before the Christmas holidays (if you celebrate it) on the 20th of December, 2022.

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