An Update on the Crypto Industry

An Update on the Crypto Industry Bulman Wealth

In 2022, the crypto industry was shaken by as capital fled the crypto markets as inflation emerged and the economic recession ensued. Shady and even fraudulent activities were uncovered at some of the most established companies. Cryptocurrencies that were once considered by some as somewhat stable collapsed as a result. So, what is going on in the industry as it pertains to your retirement and investment choices?

An Industry Struggling to Grow Up

Whether you’ve been keeping tabs on the cryptocurrency sector or are new to the game, it’s critical to know how this once-booming industry is now crumbling.[1]

Inflation caused interest rates to rise, which resulted in a contraction of the economy and a capital flight from riskier businesses and industries, especially the crypto industry. This not only caused the prices of cryptocurrencies and other assets to plummet but also caused illiquidity inside the industry itself. When capital fled the markets, crypto giants such as FTX and Terra Luna were put in a failing position due to their over-leveraging of their assets in unique ways, which was caused by their overconfidence in their own products and companies.

The lesson of the tale is that crypto is not infallible and that it is still young… Many crypto company CEOs approach the structure and financial order of their companies in an idealistic, “imaginative”, but overly risky way.

The State of Crypto as an Investment

Crypto has become a more widespread financial concept, and you may have seen commercials for crypto exchanges or brokerages. You may also have seen advertisements for Bitcoin or other cryptocurrencies and even purchased them as part of your investment or retirement portfolio. The reasons for purchasing these assets vary widely, whether you’ve heard terms such as ‘digital gold’ to indicate stability and intrinsic value, or ‘moonshot’ to indicate a massively speculative investment.

However, as a long-term investment, the truth is that there is no guarantee of safety or returns, especially with a new asset and industry that is still figuring out its own ecosystem and regulation is yet to be solidified. If you have questions about investments that can help you work towards your goals, call us today.

All content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions. Nor is it intended to be a projection of current or future performance or an indication of future results.

Opinions expressed herein are solely those of Chris Bulman Inc. dba Bulman Wealth Group and our editorial staff. The information contained in this material has been derived from sources believed to be reliable but is not guaranteed as to accuracy and completeness and does not purport to be a complete analysis of the materials discussed. All information and ideas should be discussed in detail with your individual advisor prior to implementation. Investment advisory services are offered through Chris Bulman Inc dba Bulman Wealth Group, an SEC Registered Investment Advisor. Insurance products and services are offered through Chris Bulman, Inc. dba BWG Insurance Agency and Ameritas Life Insurance Corp., CA State Insurance License # 0M46922. Being registered as an investment advisor does not imply a certain level of skill or training.

Bulman Wealth Group, BWG Insurance Agency and Ameritas Life Insurance Corp. are not affiliated with or endorsed by the Social Security Administration or any other government agency.

Any statements or opinions expressed should in no way be construed or interpreted as a solicitation to sell, or offer to sell, advisory services to any residents of any State other than the States where otherwise legally permitted.

Images and photographs are included for the sole purpose of visually enhancing the website. None of them are photographs of current or former Clients. They should not be construed as an endorsement or testimonial from any of the persons in the photograph.

Purchases are subject to suitability. This requires a review of an investor’s objective, risk tolerance, and time horizons. Investing always involves risk and possible loss of capital.

Share this post with a friend or family member!


Archived Blog Posts