Executive summary: Is Crypto a Good Investment During Stagflation?
Stagflation looks on the cards for 2023 and beyond. What does that mean for computer coins and how does stagflation even work? The ape-friendly analysis of a difficult economic concept in ELI5 terms.
What you will learn:
- What stagflation in economics means and what to invest during a stagflationary period.
- Stagflation is when economic growth is lagging, but inflation and unemployment are increasing.
- Supply-side shocks can lead to stagflation and leave central banks with little room to maneuver besides hiking interest rates and talking tough.
- Crypto remains firmly in risk-on-asset territory and could suffer more if stagflation materializes.
- Bitcoin looks cheap by a number of metrics, but a reversal depends on where the Fed will take the economy.
- Almost all asset classes are going sideways or down during stagflation. Commodities are the exception, but investing in them is hard to get right for retail investors.