Some people believe that this time they won't play out the way they have played out in the past. We are in difficult territory when it comes to the picture of the global economy. Covid supply shortages plus extreme stimulus printings, a very low-interest rate, and the war created a perfect storm for macro disaster. This is caused inflation in the US to skyrocket and the FED has tried to fight that has raised interest rates faster than any ever raised interest rate in history. These interest rate raises are responsible for the collapse of crypto markets, the stock market, and every other investment.
The purpose of this interest rate raise is to make people buy less staff, make companies make less money, and have more people unemployed. The general purpose of weighing down the economy is so much that it down up crushing inflation back down to what the FED considers a reasonable level. You could also easily imagine like people having less money and if the business is making less money, it really bad for crypto. The massive we had in 2022 absolutely decimated the crypto market. The FED has already told us exactly what they are going to do, he said in 2023 they are going to continue raising the rate and they are not going to lower interest rates until inflation absolutely crushes or is under control. The FED actually doesn't get to dictate when push comes to show. When the FED raises interest rates as fast as they have, they risk breaking things really bad. That is why every financial analysis on the earth right now is predicting a massive recession in 2023.
When you look at the picture over the next few years, I actually think the macro is going to be overall bullish for crypto. The fact that Wall Street is quietly in the background building out massive crypto for traditional investors who up to this point haven't had easy enough access into the crypto market. We have legacy companies like Fidelity seriously building out crypto products so that they can their clients. Clients who generally hold and have substantial wealth to invest.
I think very soon, every legacy wall street firm will have some sort of crypto offering to offer their client. Despite what you might have heard, crypto is a good innovation that will have massive adoption. It is a global financial system not built or controlled by a government. For the first time, people now of the option to choose a financial system that is open and global. Of course, crypto is still very early and there are still some problems to overcome but given the massive amounts of funding that is in the crypto space and some of the smartest minds in the world working in the space, I'm confident that these problems all be solved with time.