Just a quick heads up, profitability will be decreasing on mining operations. The CPI data came out this morning with higher than projected numbers on inflation as well as core inflation. The numbers are extremely nasty. Projections where .7 but came in a 1. Unfortunately as most of us know, seems that the crypto market follows tech stocks extremely close, since tech stocks are deemed higher risk and investors are taking a risk off approach during the high inflation / interest rate hikes, crypto will unfortunately follow. Cross our fingers inflation start to trend downward again so we can see some risk in movement in cryptocurrency investors.
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Its about to get very bad… layoffs have started and companies are cutting hours.
You are correct, what is also on point, is the trends are on cue for a recession. Everything that is currently happening now is the recipe for a recession. The only problem with our current situation this time around is, in the past when we went into a recession the Fed lowered interest rates to bring us out of a recession and go back to a positive GDP. This time they do not have that option, which is scary because that puts us on a very small line of going into a depression.
I am speculative on believing that we can even see a lost decade could have a small chance of being on the table. This happened in Japan back in 1992. The market in Japan, still today is not close to where it was trading at prior too 1992. The only weapon we have against that and what could keep us out of a lost decade is our population is much greater than Japan’s.
I also have Zero confidence that our current leadership has any clue to what they are doing…
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You are 100% correct!!!
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Mine the dips…”smartly”
This is where efficiency, and smart planning comes together. Spec mining will be profitable for those that research the projects that have the most logical approach to the space. Everyone has their own strategy and I hope that it works out for everyone. At best I can say is consolidate coins on unknown projects to projects with proven history. If it gets any worse we will see as in the past projects folding.
Completely agree! Times like this and what they soon will be, will weed out the losers from the winners in the crypto projects as well as small cap businesses. This is an excellent time to sell out of your lowest conviction crypto / stock picks and move into higher conviction stocks and cryptos. Also can lower the ol tax bill if selling at a loss!
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We have nothing to worry about, our wonderful leaders will just print more money faster and give it to us again🤦‍♂️Rumor has it that the gas prices is the govs way for getting back the stimulus money. In all seriousness though, we do need to be careful and probably minimize the risks we take. This could work in our favor long term though with ASICS becoming more affordable.
Good points in this thread by all. I’ll add that high government debt also limits the ability to which the government can limit the combo of inflation and recession. If the debt was low, interest rates could theoretically be high to limit inflation and the government could add spending to boost the economy. They have basically backed themselves into a corner.
Yes Sir! you’re absolutely correct. Make sure to minimize risk exposure and pay off any personal/business debts you have at the moment. We all know the fed has no choice but to print in the long run, but keeping you and your family finances comes first. There is an old saying “market can remain irrational than you can remain solvent”.