Update of the world
The world turns crazy today. We are just out of the corona period that had a very negative effect on the economy and we are already being catapulted into another crisis. The war in Ukraine is causing a lot of unrest in the world. Both on a humanitarian level and on an economic level. The war is causing prices to skyrocket and inflation to rise at an incredible rate. Life becomes more expensive every day and the ordinary working man is of course the biggest victim again. I should add that this is the official explanation, inflation was coming anyway due to the amounts of money being printed and poor management by the government.
Inflation in Europe has now risen to 8.6% and in America it has also risen to 8.5%. In other words, people who save their money lose almost 10% due to inflation. Absurd, but it can be even worse. In Turkey, for example, inflation has already risen to 78%. Although according to official figures, economists estimate that the real inflation rate has risen to 175.5%. Almost hyperinflation.
Wall Street is also riven with carnage. For example, the stock market is having the worst half of the year since 1972. This is even worse than the crash of 2008. The 500 richest people in the world have also lost a combined total of some 1400 billion dollars. The only thing the central banks can do now is to raise interest rates. This is also what they are doing in America and they are planning to do the same in Europe. Disadvantage: bad news for the stock markets. If interest rates are raised, it will become more expensive to borrow and this will effectively reduce borrowing, which could stagnate the growth of companies and, of course, this will also have an impact on the stock market. It's a difficult choice: either they choose for the people and raise the interest rates to curb inflation, or they choose for the companies and leave the interest rates as they are.
The crypto market is also an outright bloodbath. We are currently in a deep bear market with no real prospect of improvement. Some analysts say that the bottom has been reached and that everything will rise again, others say that we will have to endure this for a while. There is also a lot going on at a high political level in cryptocurrencies, such as Europe has legislated to keep everything under control a bit better. Supposedly to protect the consumer, the platforms are also held responsible for any loss of cryptos.
On the other hand, there is positive news from Russia. For example, every crypto company will be exempt from VAT. Also, bitcoin mining will become easier in Russia. However, under one condition. The fact is that mining is now allowed there but they are obliged to sell their coins abroad. You should know that there are huge economic sanctions against Russia, this also ensures that little new money appears in their economy. By starting to sell bitcoins across borders they ensure that there is an inflow of value.
It's a big chaos in the world and it doesn't look like there will be any improvement anytime soon. How low will the markets drop, how long will retail prices get higher. Everything depends on the state of the world. The only thing you can do to take as many hits as possible is to diversify your capital. Both in crypto, but also in silver, gold, real estate and the stock market. Also, keep your diamond hands and don't sell anything at a loss. Sweat this state out and don't get caught in panic reactions. Sooner or later everything will come back but it is impossible to say when now. We can only hope that the world situation calms down a bit, then everything can start its recovery. Make sure you have peace of mind and patience. It is the only way to get through this period.