Tom Bilyeu: Crypto Is Crashing – Once in A Lifetime Opportunity to Build Wealth Is Here
The past year has seen a massive drop in all financial assets. That includes risky assets like tech stocks, but even safe, conservative investments like bonds are down substantially this year as well.
That leaves investors hurting no matter how they’ve allocated their portfolio. The culprit? The low interest rates that were set at zero during 2020, which caused speculation to explode. With that process reversing, it’s likely that there’s further downside ahead for most assets.
As a result, investment models are broken, and will likely remain so as long as the Fed keeps raising interest rates and inflation remains high.
However, market pullbacks tend to be a great time for investors – provided they’re buying for the long-term, and not selling. That can be true of any asset, from beaten-down stocks and bonds to riskier assets like cryptocurrencies.
Knowing where to place your assets and understanding how inflation can impact those assets are key to investors. Owning real assets can hold up well against inflation. Traditional assets like gold and real estate can fare well if bought at the right price.
So can cryptocurrencies like bitcoin. That’s because the king of cryptocurrencies has a solid track record overall. The downside? Bitcoin can have significant drops. The crypto has averaged at least one 50 percent correction every year since it started trading.
Investors who buy Bitcoin only on such a significant dip can fare well when prices rise again. And because bitcoin can be stored personally, it offers a level of privacy that other assets don’t offer.