Watch the symptoms unfolding.
- Deflation (cash is king for a while). In this period all who can will convert their money into real assets. After that: extreme inflation.
- Inflation that spirals into hyperinflation, followed by
- currency reform
The worst result of the crisis will be that people without cash (and that are most people) will not be able to use deflation to prop up real assets. They will face extreme poverty during the hyperinflation and early stages of currency reform.
States will probably go after private gold and silver - disown people and forbid them to use gold and silver to settle payments. It can also confiscate real estate. Guns will rule the days of transformation.
Is this scenario unfolding, or will there be a quick fix? The big experiment of our times is to see how far bubbles can be extended and revived. Economic laws do not apply. It' s just about power.
There can be some kind of fix. Like after other crises things were fixed. In that scenario stock markets can be pumped again.
What about crypto? We do not know if it might work as a hedge or a survival asset. So far people in crypto have just tried to get adoption and play by the rules of regular markets in return. No wonder it follows these regular markets. The people who pumped billions into crypto are the same that go in and out of other markets. As currency cryptos never really developed. In theory crypto should be the perfect hedge against coming totalitarianism. Unless you think the internet will be shut down. That is unlikely, since it is there to spy on you 24/7...
Maybe today's crypto meltdown can turn faster than the stock market. A good thing would be to cancel many crypto projects. Convert the bags to some majors. You don't have to take losses in fiat pegged coins - just study the differences between major coins. Changing a coin that lost 45% in a week to one that "only" lost 40% could be a good deal, since many of the lower capitalized alts will not make it back probably any time soon.
Guess we will have lots of short term trading opportunities after the weekend. Let' s see. Too early to be sure of anything yet.
<br /><center><hr/><em>Posted from my blog with <a href='https://wordpress.org/plugins/steempress/'>SteemPress</a> : https://cryptmove.com/2020/03/12/quick-fix/ </em><hr/></center>