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RE: BTC at 20K? Recessions create more selling.
Hi @fijimermaid
I'm curious if your knowledge of finance has been gained from personal experience and learning or is it a product of academic study.
I also think that, although the.situaciln seems to be quite complex, we have not hit bottom, I think the market will get more complicated and the prices of almost everything that in theory serves as an instrument of speculation today is going to go down in price.
Cryptocurrencies will face a lot of rules and governmental attacks, and this may make the situation even worse. I think there are really difficult times ahead. And not because I am a pessimist but a realist.
Formally educated in politics and history…made my money in finance. But I had to pay for the education in both…lol.
Years ago, I realized, shortly after graduating from University, that politics/history doesn’t pay much…so I started working for the insurance industry, selling financial products, and trading “options” (futures contracts) in my spare time. I learned a great deal about finance from working with people in the industry.
However, my best education in finance came from the 2008 Financial Crisis. I lost a lot of money in that market correction. And nothing educates a person more than losing money. Hence, paying for the education :)
So I started reading everything that I could on what happened in the 2008 housing bubble. How debt and derivative assets (based on that debt) inflated asset prices…and encouraged the entire system to take on more leverage…which contributed greatly to the bubble.
I studied how debt works…the history of it…its application. How debt cycles move markets and economies. How it fuels bubbles in financial and real assets...in repeated cyclical trends…over decades and centuries. I applied this to my trading and investment strategies. And have made good money and paid off all debt.
This is why I talk about credit and debt all the time. That is why I sold my trading positions last year (and posted about market weakness). Inflation was going to force central banks, especially the Federal Reserve, to make credit more expensive, and when credit is more expensive, markets sell off.
Anyway, I hope that I answered your question my friend.
Hello friend @fijimermaid
Interesting. So you're a historian and a political scientist. Surely that career allows you to have a more global vision, it gives you a better possibility of going from the general to the particular, which is an important tool.
And in general, historians, as I understand it, because my father is one, they are methodical, they have a lot to talk about, they can make many accounts of social and historical events.
It seems not, but yes, it is a career that can be compared to what finances and economics are, in the end, these are largely the ones that have made the world move in a certain direction.
Crises are to learn, without a doubt, or those who don't learn, to break, but I think you always have to look for ways to learn from everything, both from the good, but more from the bad.
Thanks for replying and sorry for being curious. Now I understand you more. Greetings.
You indeed do :)
:)