Profitable Investing Tips
Historically low interest rates that drove much of the bull market after 2009 are gone, the US and EU aim to bring critical industries back onshore, and major demographic shifts are likely to reduce productivity across the world. Investors will need to use strategies such as investing for the end of globalization.
Now that folks have lost $2 trillion in dollar value of their cryptocurrencies in the last 14 months, crypto investors are more interested in how regulation might have prevented crypto business collapse and crypto business fraud. Meanwhile, the regulators are descending on crypto companies like a cloud of locusts ready to devour all in sight.
Why have companies like Genesis gotten into financial trouble when the concept of decentralized finance is, by itself, so promising? Some of the reasons will likely become clearer during bankruptcy proceedings much like FTX’s problems have seen the light of day during their bankruptcy hearings. With the Genesis DeFi business headed for bankruptcy following others it is useful to look for lessons.
The issues for China and the investment implications of a shrinking Chinese population have to do with the demographic mix of people within that 1.4 billion population. China is getting older, just like the EU, USA, Japan and many other nations. This means older folks who need support and fewer young workers to do the work, pay the taxes, and keep the economy going.
Bitcoin pretty much tracked with the Nasdaq in recent years but also took a hit each time another disaster like the FTX bankruptcy befell the crypto world. We are curious as to whether this Bitcoin uptick is for real or just a mirage hovering over the current frozen crypto landscape. What will the Bitcoin rebound look like?
In the background there are changes stirring in the blockchain based on cost efficiency such as Ethereum scaling its blockchain to keep transactions affordable. An important part of these changes is the introduction of modular blockchains to replace or supplement monolithic blockchains. Most folks may ask why use a monolithic vs a modular blockchain and will ask as well, how does that affect me?
Because of recurrent budget deficits the US Treasury (which sells securities) needs permission to borrow as the debt limit is a set number. In 2023 that debt limit will soon be passed, and Congress will need to raise the legal debt ceiling or risk having the United States of America go into default on its debts. At Profitable Investing Tips we are concerned about investment risks of a debt ceiling crisis which is currently brewing.
Crypto winter has made investors and speculators anxious about putting money into any crypto-related ventures. True believers watching things like the FTX bankruptcy and charges of fraud are thinking that crypto has lost its way. Plunked into the middle of this is the concept of web3 which is an internet version with a blockchain backbone and lots of use of crypto. Now that people have lost so much money in crypto ventures the question is, will investments in web3 be safe?