The COVID-19 pandemic has the global economy on the ropes. Massive supply chain bottlenecks worldwide combined with a substantial increase in the money supply have caused the worst inflation in more than 40 years.
Forced lockdown conditions and lengthy quarantines prompted an immediate drop in the demand in the energy sector. The sudden sharp shift in demand, in turn, forced many gas, oil, or mining companies to reduce production or pause operations. When the economy reopened, the supply could not keep up, and prices skyrocketed. The introduction of an increasingly tense geopolitical situation has only further created the perfect storm for an energy crisis.
Inflation Climbs A Ladder Of Chaos
Rising prices in the consumer and industrial sectors can also be attributed to the colossal monetary expansion of freshly minted US dollars into the global financial system. The total supply of US dollars recently set a new all-time high of over $22 trillion. As a result, the American public is facing record inflation.
The ongoing military conflict in Ukraine and related economic sanctions imposed against the Russian banking and energy sectors have only further exacerbated the frighteningly chaotic situation. Countries don’t want to do business anymore in dollars, and it could hurt the currency’s status as the global reserve asset.
In season 3 of the popular HBO series Game of Thrones, one character tells another that “chaos is a ladder.” The COVID-19 pandemic created extreme chaos and panic. This led to chaos and panic in the supply chain and in the global economy. Now, the energy crisis, war, and inflation have brought chaos and panic to markets which creates excessive volatility that can be capitalized on with the right tools and skills.
The Two Sides To Any Situation
Few would agree the energy crisis could have a positive impact on the world. However, policymakers will need to address the ongoing dependence on environment-polluting fossil fuels and more aggressively pursue green and alternative energy sources. This includes wind farms, solar panels, or promoting the production of electric vehicles. All of this could be viewed as wildly optimistic for the planet.
Each of these green energy initiatives will contribute to a new area of business growth. These operations require everything from software development to engineering, design services, and the production of components and parts. Businesses will need marketing departments, and revenue growth and expansion will drive innovation in new products and services. With the government’s oversight, every young company will be scrutinized to ensure every condition or recommendation is satisfied.
Cycles Of History Says Promise Is Ahead
Mark Twain famously said, “history doesn’t repeat, but it often rhymes.” Cycles of history have proven that out of the ashes of a pandemic, total war, economic collapse — and often all of them at once — that there is a major technological revolution that follows. The broken system of the past is replaced by a new world order that ultimately pushes humanity back in the direction of growth, peace, and prosperity once again.
Discovering emerging early seed tech startups that fit this bill can be incredibly lucrative. But because most new businesses eventually fail, this strategy is heavily loaded with risk. It is more akin to finding a needle in a haystack — or perhaps finding a straw of hay in a stack full of needles, given the abundance of risk.
Because the next wave of tech companies will become new members of the NASDAQ 100 and the S&P 500 stock indices, taking a position at corrections can keep savvy investors in the green. Tech giants of today not only survived the pandemic, but companies like Tesla, Amazon, Alphabet, Apple, Microsoft, Netflix, Zoom, and others saw record growth and revenue. In addition, these essential tech companies have helped millions of people withstand the effects of the pandemic with their innovative products and services.
The Fed Policy Fakeout And Crypto Regulation
The United States economy is directly connected to the stock market. We have a better chance of seeing an apocalypse than we do seeing the Fed abandon the stock market. The recent pressure and sell-off in the stock market are connected with conversation suggesting the Fed will significantly tighten its monetary policy to combat these record inflation figures.
But actions speak louder than words, and the Fed has yet to increase rates significantly. This lack of a serious tone and commitment from the Fed is weakening selling pressure. With bearish sentiment so strong, panic almost past, and policy primarily unchanged, the market could turn bullish again in a flash. Investors may regret not buying the dip at current levels.
With supply chains severely disrupted, economic sanctions making headlines, and messy monetary policy, there is significant room for growth in the blockchain industry. Decentralized and borderless technologies will incentivize the business world to develop a more tightly knit global economy — all without the intervention or involvement of governments or central banks. Innovative new projects will legitimize and strengthen the status of digital assets as legal tender, alternative currencies, or possibly reserve assets.
Rapid regulation could hit crypto, but much like the energy crisis will create the need for new technologies and companies to drive them, this could also have unexpected benefits. Shark Tank investor Kevin O’Leary expects the crypto industry to become the 12th sector of the S&P 500. Once again, putting money in stock indices proves to be the safest and most reliable bet.
Profit From Future Promise With PrimeXBT
Despite the horror scene taking place in global politics, rising inflation, and even in the face of a pandemic, putting money behind stock indices is a winning formula. In this economic environment, positions in cryptocurrencies like Bitcoin, scarce commodities and precious metals, and more, could prove to be extremely profitable. A portfolio centered around these historically high-performing assets can help to diversify risks and ensure you are well-positioned for a bright and promising future ahead.
All of the assets outlined here are available at the award-winning margin trading platform, PrimeXBT. Users can gain full flexibility and control over these popular and trending markets to take advantage of once-in-a-generation volatility. As one of the top ten trading platforms by volume globally, performance is reliable, and the tools are among the most advanced around.
In addition to long and short positions on more than 100 trading pairs, there is the Covesting copy trading module, APY-generating yield accounts, weekly trading competitions with crypto prizes, 24/7 customer service support chat, and much more. Much like you don’t want to miss the promise of future tech opportunities, you don’t want to miss all the value that PrimeXBT brings to the trading community. See for yourself today.
