The Bear Market: Can We Come Out Now?

At the time of writing, Bitcoin and Ethereum have made a break for it and the whole crypto chart is reading green. And yet, at the same time, UK inflation hits a 40-year high of 9.4%. While in the US, inflation is officially at 9.1%, with some suggesting the real figure is more like 12%.

When looked at in context, this seems like a relief rally that won’t hold much water against the upcoming macroeconomic announcements, which are all expected to spell more trouble for both crypto and the traditional markets.

In the short term, things may seem all doom and gloom, even when the sun is starting to shine out from behind the black clouds. It’s clear, that today, tomorrow, and most likely until at least the end of 2022 will be trying times. This does not mean, however, that it’s also the time to throw in the towel.

A common theme in tech and crypto is that bear markets are a time to build. For investors, the same maxim can ring true. Unless you were overexposed and are now looking down the barrel of heavy losses, these bad times are in fact, the perfect time to prepare for the sunny days that will certainly come back in the not too distant future.

The Golden Rule

Perhaps one of the most surprising parts of the recent economic downturn has been the way gold has struggled to stand up to its renown as a guaranteed hedge. At the time of writing, gold is down 5% on the year and close to 7% in the red over the last 6 months, and 30 days.

Pan out a little and the steady growth is still there, with a 36% uptick over the course of the last 5 years, and a whopping 429% over the last 20 years. Gold might be flailing a bit in the crazy post-pandemic times of war and widespread economic meltdown, but history shows us it’s clearly still a safe place to turn for a safe long-term investment.

A long-term bet on gold is not new to the guys at Asia Broadband, Inc. AABB as they have made gold and other precious metals their business for the best part of the last 20 years.

Something that sets Asia Broadband apart from other companies in the industry, however, is that they understand that diversification is always as important as being in the right market to begin with.

A perfect example of this diversification in action is the way AABB used the $82 million sale of one of their gold mines. Many companies would have simply counted their profits and rode off into the sunset. Asia Broadband used its cash injection to branch out and embrace an upcoming asset class whose potential could one day rival gold.

Don’t Believe the FUD

The death of Bitcoin and crypto has been announced so many times by now that it’s become a bit of a joke. It is true that by mirroring the traditional markets in the current economic crisis, bitcoin and the wider crypto market is doing the exact opposite of what it was supposed to in times like these.

Bitcoin is not digital gold, just yet. But what is true today does not necessarily act as a reliable predictor of the future. If gold’s 400% rise over the last 20 years looks good. Any 10-year investor in bitcoin would now be sitting on a return of 169,211%. And that is with bitcoin down around 70% on its all-time high.

With those figures, it is easier to understand why a company specializing in long-term investments might know a thing or two about the direction that crypto will continue to follow in the next decade or so.

Asia Broadband used part of the profits from their gold mine sale to launch a hybrid-crypto whose price is directly tied to gold that the company actually owns. In doing this, Asia Broadband is doing something that others attempting to get into this sphere can’t come close to.

With their AABB Gold Token (AABBG), Asia Broadband is leveraging the historical stability of gold, wrapping it up in crypto, and placing this unique opportunity in the hands of its investors.

To support and drive up the rate of adoption of AABBG, the company also released the AABB Wallet and a proprietary digital exchange called AABB Exchange.

By doing so, AABB expects its token to become a worldwide standard of exchange that is stable, secured, and trusted with gold backing while having the added benefit of demand-based price appreciation.

The AABB Exchange, which is home to over 400 cryptocurrencies and 60 trading pairs, is a particularly interesting development. The new addition to the company’s crypto offerings will give AABBG token holders quick and easy access to liquidity and the ability to instantly exchange AABBG for other cryptocurrencies such as Bitcoin, Ethereum, or Solana.

This empowers holders of AABBG with the ability to instantly switch between other cryptos as and when the market might suggest that this is the right move.

Look to the Future

For those worrying about all of the red on the charts, some of the above may seem like the kind of good news you just don’t want to hear. But it is always important to remember that history does always repeat itself. Bear markets are no fun for anybody, but even in their deepest, darkest days, the journey back to the bull market is already underway.

Rather than complain about how bad things are today, smart investors are now planning how to turn this downturn to their advantage and come out smiling on the other side. Putting your trust in a company that knows about long-term cycles is one way to use your time wisely now.

This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.

Image sourced from Shutterstock