Market perspective

Hello everyone, a week has passed so quickly and we will meet again this week for the crypto story. For the past few weeks I’ve been sharing with you guys how the success of the Bitcoin network is inevitable.

But the question of why this is inevitable to answer deeper is difficult to say in an article. If you still have questions about this difficulty, please check out my previous article: The Brain of a Crypto Analyst

You see, understanding something new is not easy, especially when it has to do with macroeconomics, but it is not necessary that we understand everything related to believe, buy and hold bitcoins.

I have also shared with everyone the main point I made about Bitcoin in previous articles, it is simple and not too difficult to understand, and simplicity is sometimes much more beneficial to believing in something. .

The point of view I would like to share with everyone this week is inflation, or more precisely the risk of shutdown, which has been mentioned a lot in the last few months. Inflation stagnation.

Just last month there were over 4,000 stories of stagnant inflation in the Bloomberg Terminal. It is a growing economic concern in the marketplace and is being closely watched by many economists. Stagnant inflation refers to an economic time when inflation is rising, economic output is stagnating, and unemployment is high.

Historically, stagnant inflation has often been accompanied by oil shocks. We are currently witnessing the average price of crude oil per barrel hitting a 7-year high, with a global imbalance between supply and demand for oil. Coupled with the natural gas and coal shortages in Europe and Asia, these factors increase the market’s likelihood of a flat inflation scenario.

We can see this trend as China’s producer price index (PPI) rose 9.5% in August while China’s consumer price index (CPI) was 0.8%. For the United States, this comes along with a tightening of monetary policy.

With a total domestic debt of 389.2% of GDP in the United States, nominal interest rates cannot rise without crashing the economic system, which puts Jerome Powell and the Federal Reserve in a difficult position.

This is quite a paradox, because the current environment is not going well for many participants. The current path of nominal interest rates is kept at the lower bound of zero, while real interest rates continue to decline sharply, with higher inflation indicators encouraging borrowing at ever lower real returns to take advantage of and overcome persistent monetary inflation.

There are many questions that need to be answered, and the answers to those questions are quite complex (for a lot of people) but also quite simple (if we understand what can protect us). The game will come to an end when the credit quality of all balance sheets in the global economic system deteriorates. After all, in a money system based 100% on fiat debt, money is created through lending and destroyed through repayment and default. As the entire global economy is systematically over-indebted, as it is today, there is a risk that fiat’s credit quality as an asset will be degraded.

The risk is high, but the rewards are very small.

And Bitcoin is the solution to the problem people like us are looking for.

A non-sovereign, decentralized global store of value created by proof of work with limited supply and adjusted in difficulty to limit production to a predetermined algorithm. It is possibly the least risky of all assets you know, and in a world of increasing economic uncertainty, Bitcoin will be your best bet.

Event next week

Notable events for everyone next week:

• October 12th – October 14th: NFTCON is a free 3-day webinar on all topics related to NFT.

• October 13th – October 14th: World Blockchain Summit – Dubai is a conference where you have 2 days of unique networking with over 500 high-level experts from governments and companies as well as identified investors, blockchain experts and developers.

• October 15 – October 17: The conscious crypto event for traders is a cryptocurrency symposium with top traders, online training and lectures on maximizing profits when trading in the cryptocurrency market.

Below you will find notable news from the projects:

This is the important information for the coming week. I hope the information I provide in this article helps everyone.

Hello everyone and have a nice weekend.

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from Crap – Synthetic team