SafeStake

This week we learned that inflation in the US had reached 9.1. This is one of the most considerable inflation rates in history, reaching a 40-year high.
Investor pessimism intensified after semi-annual reports from governments and companies. At the end of the second quarter, the S&amp;P 500 Index, which tracks the stocks of the 500 largest tech giants, fell to its worst performance since 1970 (12% since the beginning of the year).
Many experts have officially stated that the economy is heading for a recession.
In simple words, a recession is an extended period of decline in economic activity in a country.
Definition of a recession
The National Bureau of Economic Research (NBER) defines a recession as a significant decline in economic activity that affects the entire economy, affecting production, employment, and other indicators. A recession begins when the economy reaches its peak of economic activity and ends when the economy reaches its bottom.
NBER is a non-profit, independent organization that monitors the fluctuations of economic cycles. It measures the periods between peaks or highs, and bottom or lows in economic activity. When the uplift begins, it is a recovery. When the economy starts to fall, it’s a recession.
US economic downturn
<img src="https://miro.medium.com/max/1400/0*rNvhBJGkYZZdGd2t">
Photo by <a href="https://unsplash.com/@adamnir?utm_source=medium&amp;utm_medium=referral" rel="noopener noreferrer nofollow">Adam</a> on <a href="https://unsplash.com/?utm_source=medium&amp;utm_medium=referral" rel="noopener noreferrer nofollow">Unsplash</a>
Recessions are a normal part of the business cycle involving. Periods of economic growth and recession, as all part of the same cycle.
In 2020, the recession was unprecedented because the pandemic turned the entire economy upside down. Businesses were forced to close and encouraged workers to stay at home. Gross Domestic Product often decreases during a recession, but not always. But it fell 5% in the first quarter of 2020 and 32.9% in the second. In the third quarter, GDP rebounded by 33.4% as businesses reopened. In the fourth quarter, GDP rose by 4.1%.
A recession must last at least two quarters, so you can’t say you’re in a recession until it hits.
Recession and investment
During the Great Recession, some investors made a big mistake: they sold their stocks when they plummeted. We saw the same thing in March 2020. So when the shares recovered a month later, many sellers regretted selling.
In any case, your long-term investment strategy should include an adjustment for recessions and bear markets. If you hold on to the investment long enough, eventually it will pay off and turn a profit.
Are there any benefits to a recession?
There is good news for optimists, especially given the endless price rise: a recession slows inflation. Slower inflation means slower price growth.
In response to lower returns, investors withdraw money causing the stock market to fall in value. Savvy investors with capital use this opportunity to buy assets at a discount.
Recession and the crypto bear market
According to Nerdwallet, bear markets are often linked to the global economy. This means that they happen before or after the economy goes into recession. Where there is a bear market, the economic crisis has already begun, or it will soon .
What will happen to bitcoin, ether, and key crypto projects? For this, it is worth remembering the dot-com crash of 2000, when $5 billion of capital left the market. Yet many companies remained in the technology market, and some became giants.
For example, Bitcoin had a price of $20.000 in 2020. And now we have an excellent opportunity to buy it at the same price in 2022.
<img src="https://miro.medium.com/max/1400/1*gXF2Dyr19bwsRt4S3hwxQw.jpeg">
All beauty is born in pain, and this story will likely repeat itself for some cryptocurrencies.
The market will undoubtedly wait for new ATHs (all time highs), which will be many times higher than those of the previous bull market. And such a prospect will not allow the world to bury the crypto industry.
The most challenging task is to choose promising market trends and blockchain projects. Projects that develop in a bear market are more likely to succeed in the long run. Recall that the full transition of Ethereum to PoS is officially scheduled for September 19th.
On August 11th, the next Goerli test network will be merged. If everything goes well, the merge dates of the main network will remain unchanged.
Before this update arrives on Ethereum you can explore projects with staking technology on Ethereum 2.0. One of them is SafeStake. a trust minimized middle-layer fostering the decentralization of ETH2.0 staking.
In July, SafeStake will launch a testnet. You can read more details in this article.<a href="https://medium.com/ethereum-on-steroids/how-to-become-a-validator-bb6102182201" rel="noopener noreferrer nofollow">https://medium.com/ethereum-on-steroids/how-to-become-a-validator-bb6102182201</a>
About ParaState
ParaState takes Ethereum chain support to the next level through WasmEdge. Develop and execute high-speed smart contracts with built-in Ethereum compatibility (EVM and EWASM) and interoperability in next-level programming languages like Rust, C ++, and Golang.
ParaState is participating in ETH2.0 PoS Staking with a new tech stack called SafeStake, a trust-minimized, middle-layer fostering the decentralization of ETH2.0 staking. SafeStake is a non-custodial infrastructure for distributed validator technology written in Rust, implementing HotStuff consensus and Threshold signing architecture to provide more robust security for ETH 2.0 PoS.
Join the ParaState community:
<a href="https://www.parastate.io/" rel="noopener noreferrer nofollow">Website</a> | <a href="https://twitter.com/ReefDeFi" rel="noopener noreferrer nofollow">Twitter</a> | <a href="https://t.me/ParaState" rel="noopener noreferrer nofollow">Telegram</a> | <a href="https://discord.com/invite/zFS3Mnfpwj" rel="noopener noreferrer nofollow">Discord</a> | <a href="https://github.com/ParaState" rel="noopener noreferrer nofollow">Github</a> | <a href="https://medium.com/ethereum-on-steroids" rel="noopener noreferrer nofollow">Medium</a>

Recession and the Crypto Market

SafeStake

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