Why diversifying in crypto is smart?

High Quality Financial Education Made Simple

Master Investor
May 15, 2023

Protect our financial future with Crypto and Diversification

It should come as no surprise that bitcoin has been made the scapegoat of all scapegoats for the recent failures of Silicon Valley Bank, Signature Bank, and Silvergate. Why diversifying in crypto is smart?

The facts regarding cryptocurrencies will be covered here, along with the reasons why the new narrative doesn't make sense.

Summary:

Many individuals are unaware of the underlying purpose of crypto
The secret to influencing our future is diversification
A crucial element of effective diversification is cryptocurrency

Emergence of Crypto

In order to avoid the financial disaster that occurred in 2008, Bitcoin was developed. It provided a mechanism for people to hold, control, manage, and conduct financial transactions in a digital format, anywhere in the globe, without the need for outside parties.

A self-sustaining and self-governed system of technology, money, and operations is intended to be enabled and facilitated by systems like decentralized autonomous organizations (DAO), which were designed with the goal of operating independently of any human involvement.

Since years ago, these blockchains and systems have been vigorously developed by the real cryptocurrency developers (not the con artists we hear so much about in the press), implementing things like:

Full Reserve Banking
Transparency
Decentralization
Open-Source
Public ownership
Acting as our own bank
Evidence of reserves

These inventors anticipated a moment when the US dollar's debt ceiling would become insurmountable. Based on what happened in 2008, they were aware that "too big to fail" companies didn't actually exist; in reality, they gave themselves such names to allay public anxiety. They were aware that the US dollar had lost almost 90% of its purchase power, and they understood that fiat from any country whose economy is based primarily on debt creation would not be sustainable over the long run.

Why cryptocurrency is criticized

Despite this, the bigger markets (fractional reserve banking) are held responsible for the issues that the smaller markets (crypto) have caused.

But what is banking with fractional reserves? In a nutshell, it's a system in which banks don't actually hold all the money that clients deposit. Instead, the vast majority of it is lent to other people or organizations. When numerous people attempt to withdraw money at once, it might result in a "bank run," in which there is not enough money to support each withdrawal.

This is the kind of circumstance that triggers a financial crisis and currency devaluation. In other words, it occurs when there is an excess of money in circulation but not enough real value to sustain it.

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What is the reality?

According to the argument, the widespread yet real fear and concern regarding crypto falsehoods is the reason why cryptocurrency is being blamed. People who utilize cryptocurrency have little influence over them if pricing and fiat value are irrelevant to them.

In all honesty, no one can stop or regulate fiat itself, even if crypto exchanges were outlawed and the barrier to entry with fiat-into-crypto was removed. There may be rules that prohibit businesses from accepting and recognizing cryptocurrency as a form of payment for commercial transactions, at most. However, peer-to-peer and direct customer-to-merchant usage cannot be stopped. For instance, it is still possible to accept cryptocurrency in return for eggs. We can still have control over our future with cryptocurrencies.

So what should we do?

Now is the time to take charge of our future.

We are told not to worry and that the banks are operating normally. However, the same problems that derailed the financial systems in 2008 continue to exist.

Because of this, it's more important than ever to diversify our investments beyond cash.

To assist generate residual or passive income, diversity can take the form of investing in farmable land, cryptocurrency, precious metals, physical assets, and skills. The fact that there is a mix of several asset classes, including cash but not exclusively, is what matters most.

The paper price of these items will fluctuate as the markets change and things change, but this has no bearing on the reality that the assets still have worth anywhere in the globe, regardless of their price outside of cash.

Depending on how they are used, metals can be used as collateral for loans or even as legal money. Although there are restrictions on crypto-based services in the US, this is not the situation everywhere. These more open DAO systems will probably return to the US when other nations use and adopt them, especially if they're thought to be superior to our more traditional systems.

We need to regain control over our finances. We must assume responsibility for our future. We have the right to possess and use what we have worked hard to earn.

Money is shifting

The operation of finances and investing is evolving. In the past, investing in significant items that were seen as "constants" was recommended. What once appeared to be steady and immovable, however, can now be changed in the flash of an eye.

Many of us initially reject this reality. But once it does, we are left wondering how we missed it. 20/20 hindsight.

Long-standing banks have had difficulty surviving. Due to its reliance on a system of producing money out of thin air, earning windfall gains, and socializing losses and unloading them onto society, the financial system appears to be collapsing before our own eyes. This behavior has been going on for a while.

CBDCs are promoted as the answer, however they cannot rescue our finances. Honest money and ownership of the worth of the possessions we acquired are the answer.

Create a wealthy future

We develop and rebuild each day.

Cryptocurrency has developed from nothing to a major global movement in just 14 years. However, there existed the desire and passion to create something for a better tomorrow before the fame, meme tokens, and NFTs. The development is still based on that concept, and that technology is still in use.

Yes, it's less glitzy than it was in 2021. Some would even contend that some regressions have occurred. However, the programmers and tech enthusiasts are eagerly working away like it's 2019 to create the best blockchains for the entire planet.

The time has come to take a position and refuse. Own and control our life and our money, as well as our future.

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