Crypto Titanic: Altcoin investors must prepare to sink with the ship

With a black swan event upon us, an unpredictable event that forever alters the way people think and behave, are cryptocurrency and altcoin holders poised to sink potentially on the ship if the world faces the worst recession economic?

Crypto Op-Ed: Are Altcoin Investors Mentally Prepared To Sink On The Ship?

It cannot be denied, the world is in chaos, more than ever.

Debt has skyrocketed for decades, banks and lenders are overextended, corporations are paralyzed due to a lack of cash reserves, and almost all major markets are in crisis from the impact of the coronavirus.

The pandemic is not only rapidly taking the lives of innocent people around the world, but it is also causing devastation to their income, job security, savings, retirement funds and investments.

Today, few industries are safe from the current blocked environment, and even those that are generally recession-proof are still struggling as the economy tries to stabilize amid a complete halt to growth and production.

With declining earnings, job losses reaching tens of millions in just two weeks, and falling asset values, it has created a liquidity crisis as investors around the world seek to sell any liquid asset on effective in preparation for the coming storm.

The first assets left are always the riskiest. And with investors abandoning even gold and other precious metals during the current disaster, things look bleak for cryptocurrency’s high-risk asset class.

Rewind until 2017 during the crypto hype bubble. Unemployment was experiencing its lowest level in years, wages swelled as a result of a booming economy, and the stock market skyrocketed.

Money was plentiful and investors were at excessive risk in speculative markets like crypto.

Investors flocked to the cryptocurrency market after learning of Bitcoin’s meteoric rise from being virtually worthless to $ 20,000, they were the alternative currencies that flocked to the hope of getting rich.

Bitcoin has the advantage of being the first to move, high brand visibility, and much greater market capitalization than the rest of the combined market. It also features unique attributes that deliver unique value, such as its decentralized network and limited offering.

And while it’s hard to tell that Bitcoin has a valid use case, it’s potential, and being the first of its kind brings you some added benefits that may help you survive the coming storm.

However, Altcoins are as speculative of an asset as it gets. Out of the top ten cryptocurrencies by market cap, there is an endless list of unproven technology and they are just promises.

But the promise doesn’t pay the bills, and these projects could be decades away from coming to fruition if they do. They could very well be among the first assets to be dumped en masse if the economy worsens, and right now this point is almost guaranteed.

People are struggling to pay the rent, feed their families, and live on very low wages. Investing more in altcoins is the furthest thing from people’s minds today.

Altcoins also offer very little liquidity, meaning that as investors seek to withdraw these assets for use in bills and expenses, or to move to safer investments or even cash, a lack of liquidity could lead to prices for these assets to near zero that is a reality.

And with these altcoins still below 90% from an all-time high in many cases, the hope that they will ever recoup losses may start to dwindle.

With everything going against the crypto market today, and possibly the worst economic setback in the history of the modern world, altcoin investors must mentally prepare to sink on the ship, if things start to sink yet. plus.

Reference: newsbtc.com

Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.

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