Is Crypto a Good Investment During Stagflation?

Stagflation in the general sense it’s gotten from the word stagnation and inflation so when combined we get stagflation. Now imagine when stagnation which is a negative word meets up with another one called inflation the end result and what they cause isn’t something one hopes to witness. Solving them separately can be easy but when they combine it can take a longer time to resolve.

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How it affects crypto

Over the years people have said that investing in cryptocurrencies is no different than gambling and it’s kind of true because they both involve taking risks with the hope of winning and also knowing you might lose in the process. However, the difference between gambling and investing in crypto is that there’s a bear season when everything is going to be bad and also there’s an assurance that it will definitely become good when there’s a Bull Run compared to gambling when you either win big or lose big like a one-way ticket.

When an economy is experiencing inflation it can also affect the crypto market and that’s what leads to the bear market when this happens, investors have the option of either pulling out to maintain their capital to avoid the bear market eating it up or buy more of the dip to accumulate for the Bull Run.

During the inflation period, not all risk-off assets or companies experience the downside, especially the companies that deal with goods and services. These companies gain more by actually increasing the price of their goods and services to be able to meet up with the inflation. On the hand cryptocurrencies that are risk-on assets or investments don’t work that way, that is, when there is a bear market and it's affecting Bitcoin badly, it tends to drag other altcoins along but not all experience it badly compares to the way the Bitcoin and Ethereum will experience it.

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