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Author Topic: Cryptocurrency Shines as US Mortgage Debt Exceeds 2008 Levels  (Read 216 times)
Hydrogen
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January 22, 2020, 11:23:00 AM
 #21

Do you guys agree that Bitcoin and other cryptocurrencies will serve as hedges to this situation? Or is it not necessary at all? Would like to hear about your thoughts or reactions about this one.


If the future forecast for global economies, stock markets and real estate is bleak.

Cryptocurrencies may be deemed a more attractive investment in contrast to gold, bonds or other things which have traditionally been considered good investments during times of recession or economic downturn.

Wealth and wage inequality are major drivers of real estate debt, as well as debt in other markets. Controls put in place to prevent real estate value from falling through the floor, accumulate debt over time. But the central issue there is worker salaries failing to maintain pace with inflation, which in turn prevents an increasingly large proportion of the population from being able to afford real estate. Governments and state regulators try to patch the hole via funneling taxpayer dollars into real estate loans, to shore up the disparity. But it should never be viewed as a long term or permanent solution as has been the norm for a very long time now.

These precedents apply to markets other than real estate as well.
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