Why I Sold All of My Altcoins (New Strategy)

This is bad.

“If the American people only understood the rank injustice of our money and banking system – there would be a revolution before morning.”

~Andrew Jackson

I sold all of my altcoins.

Oh God. I’m in trouble, aren’t I?

In case you didn't know, an altcoin is anything besides Bitcoin. No, I didn't sell my Bitcoin. But I did sell a portion of my Ethereum.

To understand why let me quickly explain what happened in the markets yesterday and where we are headed.

Major Changes in The Market Explained

Yesterday the Federal Reserve raised interest rates 75 basis points making it the boldest hike since 1994. Fortunately, the markets weren't shocked by this information as the hike was 'leaked' on Monday and got completely priced in.

Now, many optimistic economists are praying that inflation won't get any hotter. They're hoping that a .75% hike is all we're going to get.

Nope, they're wrong.

As I told my best friend recently, we only technically entered a bear market this week; so the recession hasn't even started.

Here's the scary part!

The Fed is raising interest rates to show they're serious about fighting inflation. But they won't be able to keep that up for long

If they raised rates to 20% — what's really needed to stop inflation — American GDP would go down to -10% or somewhere around there. This is because when rates get too high, companies can't borrow money to invest and expand, so they lay off workers which then decreases consumer spending.

This means we will have to live with high inflation.

High inflation in the stores, where it pours, in the trees, in the bees.

(I'm sorry, I couldn't resist adding that little rhyme).

And this is the scariest part!!

The national debt.

Joe Biden is jerking himself off about cutting down the national debt but it's all smoke and mirrors. The real national debt is north of $30 trillion and growing.

Of that $30 trillion of debt, about $7 trillion is held by foreign governments and investors. The biggest holder of debt is the Federal reserve itself, at $ 9 trillion or so; the Social Security fund, military pension fund, state and local government pension funds all hold trillions more, with the rest held by American corporations and citizens.

This is another reason why the Fed won't raise rates too much as the interest on national debt goes up along with these rate hikes.

As I already stated WE WILL HAVE TO LIVE WITH HIGH INFLATION.

That means high inflation if you live in England, America, Japan, or any other country with a central bank. And while I do appreciate America's massive army, 11 aircraft carriers and dozen or so welfare programs, maybe it's time for the government to cut back.

So what did I do over the weekend?

I sold all of my altcoins.

That consisted of Polygon (Matic), Polkadot (DOT), The Graph (GRT), Basic Attention Token (BAT), and a chunk of Ethereum (ETH).

(If you need an explanation of any of these DM me on Twitter or email me)

I moved most of that into Bitcoin or I'm holding it as cash as we head deeper into this recession.

Why would I do this?

What we're seeing in the markets right now is called a "dead cat bounce." This isn't a real market recovery. Most assets are going to continue to crash into the summer due to inflation, the Fed, and the overall state of the economy.

And although inflation is high, I'd rather have the cash during a recession.

During a recession I'm not sure what emergency expense I might need:

• The IRS might show up at my door one day saying I owe them more for taxes.

• My rent may get raised or there might be unforeseen bills.

• I might need money to travel to conferences or make other trips to expand my network.

As the old saying goes, "everyone is a genius during a bull market," but during a recession, every move you make could have lasting impacts. Be very careful.

I'm not done with crypto, as you can read here, but I have to take a more cautious approach.

Moreover, I do feel as though for the first time in my investing career I understand the value of an asset. There's an old saying by Warren Buffet that goes, "price is what you pay, value is what you get."

I want to buy more Bitcoin and Ethereum at a price that feels like I'm getting a deal, not because everyone else is buying it and FOMOing in.

For now, this means I'm going to sit on my cash and wait for a buying opportunity that seems fair. I'm not sure if $20,000 was the bottom for Bitcoin or $1,000 the bottom for Ethereum, but for now, I’ll sit on my hands and wait.

What do you think about my strategy? Let me know in the comments below!

Ever since I was a child it was my dream to become a financial advisor. Unfortunately, it never came true. Therefore I am not a financial advisor and you should do your own research and not just listen to random people on the internet. Nothing contained in this publication should be construed as investment advice.

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