1 min read

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.
Executive summary: Is Crypto a Good Investment During Stagflation?

Executive summary:

  • 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.

Full article:

Is Crypto a Good Investment During Stagflation? | CoinMarketCap
Does this fearful combination of inflation and stagnation bode ill for crypto trading, or is crypto outside of its influence?