ASSET PROTECTION AND STRATEGIC CONTROL DURING ECONOMIC CRISIS

ASSET PROTECTION AND STRATEGIC CONTROL DURING ECONOMIC CRISIS.

 

In any economic season, it is a given that there will be a crisis, and these crises can wipe away years of wealth built and assets nurtured. For instance, during the Great Depression, rumored to have been triggered by the collapse of Wall Street in 1929, people saw all their assets, accumulated and nurtured for years, wiped off in less than minutes. The Great Depression lasted ten years; there was a massive loss of jobs because employers could not keep up with the pressure.

During the COVID-19 lockdown, which lasted for months, many businesses were closed, and many became jobless. In addition, in the United States, many employees filed reports against their employees, claiming they were unjustly fired. The effect of this lockdown was intense because many businesses did not prepare for it.  

The most shocking wealth loss yet is that of Sam Bankman-Fried, the CEO of FTX, a crypto exchange platform, who lost over 93% of his wealth in one day. Sam was a billionaire, worth over $16 billion and lost over 90% of that in one day! Not just that, but his business also lost over $6 billion due to a failed purchase between his company and Binance. The question is not whether an economic crisis would come, but how one protects their assets to ensure that even if the crisis hits badly, it will not take them back to square one.

 

Steps to Asset Protection during Economic Crisis

The idea is to first be strategic and not react IN the storm but before it. Here’s the logic: most times, you cannot change anything that has happened, and you may not have enough information to fight properly, but the best thing you can do is to plan against as many scenarios as possible. It becomes dangerous for anyone to allow their enemies to plan a surprise attack; you cannot afford not to be prepared before the storm comes. The word strategy is from a Greek word that implies “a general in charge of an army,” meaning that the term “strategy” means war or implies being battle-ready. The first step to this is to be proactive.

Secure Assets from Draconian Government Policies and Taxes

During economic crises, the government tries to intervene by enacting policies that might, in most cases, lead to the loss of assets or a significant decrease. Therefore, before an economic crisis happens, or during an economic crisis, it becomes necessary to keep assets away from the reach of the government. The only way to achieve this is through digitizing assets and effectively securing them with trust. Such a move makes those assets tax-free, liquid, and secure from the government and creditors.

Diversify Your Investments

One easy way to protect your assets in the case of an economic meltdown is to diversify your income into areas that retain value, no matter the recession or the economic crisis. Find alternative assets, and plunge your finances into them. For instance, investments in gold and precious metals can retain value.

Invest In Low-Risk Outfits

Often, keeping your funds in high-risk volatile markets can make you susceptible to a crash; the best thing to do is to plunge your investments or profits from the high-risk ventures into low-risk, low-volatility investments. But, of course, this would take a longer time to mature; be sure to have a low-risk investment by the side and plunge into it.

Increasing Your Liquidity

It’s also important to be liquid, especially when you trust that a certain economic crisis looms; you may want easy access to your funds or capital.

The Blockchain Trust

Blockchain Trust is a platform that utilizes blockchain technology to secure assets for individuals. Trust happens when a trustor grants a trustee permission to manage their assets, protect them and give dividends to the third party, the benefactor. It is important to understand that once your assets become digitized and stored on the Blockchain, you can transact them from anywhere in the world and keep them safe. Furthermore, the transactions are transparent and protect you from excessive government taxes since the assets are not registered in your legal name but with an anonymous identity.

If your assets are coins (cryptocurrencies) or NFTs, they would be subject to these economic tides. So you may want to look for a more stable investment and plunge all your resources.

In conclusion, there are many other ways to protect your asset, but the Blockchain is the easiest, cheapest, and most secure of all the platforms available.

Think asset protection, think Blockchain Trust®

You can secure your assets or register your new Trust company on the Blockchain in less than 30 minutes.

Think asset protection, think Blockchain Trust®