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its fixed in the way, that you need billion play-time of grinding.
main problem is, smithing recipes only drop depending on the value of the weapon you smelt. most 1-h weapons like knives are total worthless and you will never ever get a single knife smithing recipe.
you can speed up progress if you buy some good 2 hand weapons and smelt them till you are able to smith good weapons by yourself in mass-production with your companions.
Save the two-handed swords for later because there are over 240 parts to discover.
The smiting is a perfect possibility to close the huge gap in the game economy.
It is just a denari printer, an official cheat to supply the hero with money.
You can win a weapon, an equipment, a horse very early in a tournament.
For you, for the brother and for both wives and for companions.
If you are a mercenary, you get very nice drops even better, then you ever find in a shop.
And you become enough money from selling loot and from mercenary contract.
They make peace? - No problems, just leave this kingdom and joint another one with priority - that one who has the war with two enemy kingdoms.
Your save some money and can beginn with crafting. Just work on one kind of weapon.
Soon you willbe able to make very profitable weapons and also rich very nice perks in the smiting line.
And you are able to buy any weapon or equipment or horses in the game.
By the way, crafted weapon are at least in the moment completely bugy - after save and load even masterpeaces change the propeties to normal stats. So, just dont care about, craft your javelins or 2 H swords, sale them and buy everything your need.
The trick with daggers is to do smithing orders.... until you unlock a higher tier blade. Then you can just start make a bunch of these higher tier blades and smelt them again to unlock more. Other weapons you need to buy higher tier ones at the market to smelt to unlock parts, because there is not enough high tier weapons of those tyoes in loot to be had.
Almost as overpowered as battle loot.