MoneyWire Special Report

Bitcoin: An Insurance Policy That Could Make You Millions

From 2008 to when he retired from the Senate in 2015, Tom Coburn provided a one-of-a kind resource to citizens of the United States.

Every year, Coburn and a team of staffers produced what became known as the “Wastebook.”

Wastebook reports were long, detailed documents that listed the ridiculous ways the U.S. government was wasting taxpayer money.

For example, the 2014 Wastebook detailed how one government project spent $865,000 to train mountain lions to walk on treadmills.

One year, Coburn noted that $331,000 was spent on a grant to study the condition of being “hangry.”

And in what might take the cake, Coburn’s report once noted how the Pentagon was spending $1 billion to destroy $16 billion in unneeded ammunition.

If you’re a student of history, you know the crazy things I just listed are drops in the ocean of government decisions that can be classified as dumb, corrupt, ridiculous, or a mix of all three.

All too often, government is the cause of — not the solution to — our problems.

As I write this in late 2019, there are plenty of problems worth worrying about…

***It seems like every week, President Donald Trump sends out a tweet that trips up a major industry and causes investors to freak out.

***It seems like every week, the domestic forces against President Trump — which typically advocate for market-crushing communist policies — get a little stronger.

***It seems like every week, the amount of negative-yielding debt around the world grows bigger… which many worry is “warping” the global financial system.

I’m a born optimist.

I believe things will be better in 20 years than they are now.

I believe free minds and free markets will create more and more prosperity every year for the rest of my life.

However…

Given the government’s long history of destabilizing the lives of regular people with things like runaway inflation, war, and communist policies, I believe in owning some insurance in case things go haywire.

After all, when I get into a car, I don’t expect to get into an accident, but I wear my seatbelt just in case.

Since you’re reading this report, there’s a good chance you feel the same.

You believe in insurance and want to own some “hedges” in case the world’s financial system gets destabilized like it did in 2008.

As I’ll detail in this report, we’re not alone in our views. And that is the simple reason why Bitcoin could soar past $100,000 in the coming years.

Plus, I’ll explain the catalyst that is set to help bitcoin skyrocket and why you should buy BEFORE this catalyst hits the market.

So let’s get started…

Negative Yields: A Nasty Distortion of Capitalism That Could Crater Your Savings

When it comes to governmental decisions that are likely to go haywire, I can’t think of one with more potentially serious, negative consequences for the average American who’s busy working and saving diligently for a brighter future than negative-yielding bonds.

Here’s how they work.

Say I pay you $100 today. All I ask in return is that in 10 years’ time, you pay me back $98.

Sounds pretty dumb, huh?

I’ve not only lost money on my initial $100 right off the bat, but I’ve also assumed all of the risk that inflation. A tanking economy or other factors I haven’t even thought about yet could greatly affect bring the real value of that $98 in 10 years.

In other words, that deal makes savers like me a sucker. Not just today, but for the next decade.

Yet supposedly smart investors around the world have taken just that deal.

At the moment, there is $17 trillion in negative-yielding debt sloshing around the world — about a quarter of the entire market. And that number is only climbing.

Market Value of Negative-Yielding Bonds in the Bloomberg Barclay Global-Aggregat Index Chart

Thirty percent of all investment-grade securities now bear sub-zero yields. All of those who hold these securities to maturity are guaranteed a loss on their investment.

And they can’t seem to get enough.

In late August 2019, German industrial conglomerate Siemens made history by borrowing $3.8 billion from investors in the lowest-yielding bond issue on record. Of the total, Siemens borrowed $1.6 billion over two and five years, with zero interest and a yield of minus 0.315% on the two-year note. Investors on this tranche were in effect paying Siemens for the privilege of lending them money. Nice work if you can get it.

This obviously makes no sense. So what gives?

Bond prices around the world are on the rise, while stock prices are falling behind. The more money that goes toward bonds drags down their yields.

The problem is, institutional investors managing billions follow guidelines that often require them to buy bonds, meaning they’ll take whatever they can get.

The current yield on a 10-year U.S. treasury note is 1.65%, while the Federal Reserve’s current benchmark rate is 2%.

These are measly sums that basically encourage profligate spenders to ramp up their spending. It’s not far from basically handing governments a blank check and asking them if they can figure out a way to spend taxpayers’ money.

At the moment, the U.S. government is still giving something back to savers who buy its bonds. But that could change quickly if, say, a strong recession suddenly took hold. (I don’t anticipate a recession anytime soon, but it’s still worth knowing the risks.)

If the economy were to suddenly tank, the Fed has in the past lowered rates by as much as 5%. With a 2% rate in effect, that leaves the Fed with half the runway for an emergency landing.

In a dicey situation like this, you need that “insurance” policy in your back pocket. Like a whole new asset class that can be a source of stability when those entrusted to keep government and business spending in line with their income are out to lunch.

The market-warping effects of easy money policies, low interest rates, and even negative-yielding rates as we’ve seen lately can lead to massive currency devaluations – like what we saw in the 1970s through to the early 1980s. During that time, investors flocked to safe-haven assets like gold, which soared 2,282%.

 Chart

In today’s market, investors scrambling to find yield in a negative-yielding environment are likely to turn once again to gold and other safe harbors, like cryptocurrencies and Bitcoin.

Similar to gold, Bitcoin serves as a store of value during turbulent economic conditions. It can also be a go-to means of value exchange, like the U.S. dollar.

In fact, in the case of Bitcoin, it’s even better than gold as a store of value in the sense that its total supply is known with absolute certainty. There will only ever be 21 million Bitcoins in circulation (once they’ve all been mined), no matter if demand begins to soar into the stratosphere, as I predict.

Plus, Bitcoin is not a corporation or a government that bends to doing what’s easy or convenient in a given moment. Bitcoin has no president or CEO, no board of directors who can intervene and rain down cash bailouts on the over-spenders.

The digital ledger that marks and secures its exchange is maintained through an open-source protocol, meaning anyone can read and review it, and anyone can run the code that defines the rules and parameters of its network and its operation on their own computer.

The Scourge of People Who Save Money

Governments have a long history of debasing currencies.

When governments want to pay for wars and big social programs, they often create extra currency units (like dollars).

Every currency unit that is created devalues the existing currency units. This is called "inflating" the money supply.

Inflation is a way for governments to quietly clip small bits of value from the dollars in your wallet and bank account. It’s a particularly sneaky activity because it allows a government to take wealth from its citizens without suffering the “blowback” of raising taxes.

Inflation is one of the greatest dangers a person saving for retirement faces. It can massively impair the future buying power of the money you save today.

To get an idea of how a free spending, constantly-inflating government can devalue its currency, have a look at the chart below. It shows how the U.S. dollar has lost over 90% of its value since 1870.

 Chart

The dollar lost its value over a long period of time. Other nations’ citizens have suffered equally large declines in purchasing power in much shorter time frames.

In Venezuela, for instance, the reckless, corrupt, free spending government saw inflation of approximately 10,000,000% — since 2018, according to the International Monetary Fund. This devastated the nation’s savers and impoverished the country.

History is full of these examples… of hard working, conservative folks losing their wealth at the hands of free spending government officials who don’t think twice about debasing their currencies in order to get re-elected.

This is why the allure of today’s digital money – cryptocurrencies that only exist in fixed amounts and cannot be debased – will grow and grow over the coming decade.

Over time, conventional currencies become less and less valuable. But the limited supply of cryptocurrencies should repel the effects of conventional currency inflation… making cryptos great vehicles for storing wealth. This will give them a big advantage over government-backed paper currencies.

As I write this, governments around the world have racked up debts and unfunded obligations on a scale never seen before.

The governments and citizens of the world’s biggest countries show no desire to face up to reality.

There is no will to curb spending, nor to scale back making lavish future promises.

It’s a huge, reckless monetary experiment that could end very badly.

But innovative technology is making it so individual savers don’t have to put up with reckless governments.

That’s why they will continue to adopt cryptocurrencies in which to save, spend, borrow, and transfer money.

In fact, there’s already evidence for this happening. A report by Digital Assets Data found that Bitcoin is used as a store of value and alternative to local fiat currencies in countries with high inflation and unstable monetary and banking policies.

As you can see in the graph below, peer-to-peer Bitcoin transactions spiked in countries that saw sky-high inflation. And those spikes happened independently of the underlying price of Bitcoin. In other words, when people needed to keep their savings from becoming virtually worthless in their local currency, they turned to Bitcoin as a means to preserve those savings.

 Chart

The potential market for this new kind of money is incredible.

That’s part of the reason you may not be surprised to learn that in 2014, many of the world’s central bankers warned people about the risks of using cryptocurrency.

Many remain skeptical today. The Reserve Bank of India, for instance, has taken a hard line on crypto, banning regulated financial institutions from providing services to crypto businesses.

But that skepticism, which remains for some of the world’s elite bankers, is fading fast.

At the recent Economic Policy Symposium held in Jackson Hole, Wyoming, Bank of England Governor Mark Carney suggested that a digital currency developed by a coalition of central banks could potentially replace the U.S. dollar as the world’s reserve currency.

You read that right. Carney suggested that a digital currency supported by an international coalition of central banks could wind up eclipsing the dominance of the U.S. dollar.

The very fact he even mentioned the idea hints at how nervous elite central bankers have become about the threat to their power and dominance over currencies that cryptos represent.

When Facebook announced it was building out its Libra coin in 2019, which is to be based on a basket of top fiat currencies, you could practically hear the banking elite quaking in their Italian loafers. The threat coming from the world of cryptocurrencies could no longer be dismissed as a flight of fancy ginned up by some basement-dwelling software developers in San Francisco.

Today, at least eight countries are exploring how they might use state-backed cryptocurrencies, including Venezuela, Iran, Turkey, Sweden… and China.

In August, the People’s Bank of China (PBoC) announced it was in the midst of preparing for a new digital currency. The bank’s deputy director, Mu Changchun, said the digital prototype of a digital yuan is ready and could help boost the circulation of the yuan at home and abroad.

Facebook’s Libra announcement appears to have been the warning shot across the bow that the PBoC could no longer ignore, with officials saying they should prepare for Libra’s coming with the digital yuan.

The bottom line is that this is no fad. This is not going away anytime soon. The exact role cryptos will play in the global financial system are still being worked out, sure. But they will play an integral role.

Stablecoins are going to a big a part of the picture. These are digital currencies with values pegged to a fiat currency, like the one China has planned. And they can provide central banks with a response to decentralized currencies like Bitcoin or Ethereum.

Still, it’s probably becoming obvious by now that as central banks step into this world, they’re not going to erode the interest in cryptocurrencies outside their control. Not by any means.

Bitcoin doesn’t have a board of directors, a CEO, or any other executive who can step in and dilute its value by issuing more Bitcoins. The amount is fixed at 21 million, and no central bank is going to change that – ever.

That sets up a strong moat for more decentralized cryptos like Bitcoin or Ethereum that are clearly different from their stablecoin cousins. And the desire for a more or less independent digital currency is only going to grow as more governments use digital fiats that can be tracked and even confiscated.

As an investment, Bitcoin has arrived as a desired asset class that, because of its volatility, has the potential for life-changing gains. That cannot be said of stablecoins, whose very purpose is to dampen volatility and maintain price stability as much as possible.

Here’s something else to think about. While Facebook’s Libra – not to mention a global digital fiat currency – is still just an ambitious project that may or may not ever be completed, Bitcoin is here. It’s real, and it’s not going anywhere.

That gives Bitcoin a shot at becoming the world’s digital reserve currency – which could send it to $100,000.

And that makes Bitcoin a highly attractive alternative to the $17 trillion in negative-yielding debt currently floating around.

This asset, which was designed and built to live on the internet, can be traded on a peer-to-peer basis, or through online exchanges.

I know, I know. You’ve heard Bitcoin mentioned before. It’s constantly all over the financial news. Mostly, the discussion revolves around the roller coaster-like volatility that’s been with Bitcoin since the anonymous developer(s), known as Satoshi Nakamoto, released it to the world on January 3, 2009.

Bitcoin’s volatility isn’t going anywhere, anytime soon.

That volatility is not just inherent to any technological breakthrough that later turned into a money-printing engine — think about the internet upstarts like Google, Amazon, or Facebook, or early stage biotechs that rocketed into billion-dollar juggernauts, like Gilead Sciences, which developed the highly lucrative hepatitis anti-viral drugs.

It’s the very life-blood of realizing explosive gains in the market.

Let me show you what I mean.

Bitcoin has seen at least 13 pullbacks in the last six years when the cryptocurrency corrected by 30%+. And almost every time, it’s come roaring back with larger gains.

Take the 83% dip Bitcoin saw over two days in early April 2013. In November of that year, Bitcoin raged back 191% over a 14-day period.

Since April 28, 2013, Bitcoin has climbed an astounding 6,972% overall. And as I type this, it’s not even at half its all-time high of $20,089 reached on December 17, 2017, according to Coinmarketcap.com.

Bticoin (BTC) Historical Corrections & Growth

Long-term investors who didn’t panic at the site of the quick downturn in the crypto markets, and instead held their ground and saw the value of this digital gold as I do, have been rewarded.

This is a high-risk/high-reward asset, no doubt, and I wouldn’t recommend allocating more resources than you’re willing to lose.

But here’s the thing.

I’ve spent many, many hours researching the cryptocurrency market. And I can say that you ABSOLUTELY SHOULD have a position in Bitcoin and other cryptocurrencies right now. That’s because I believe Bitcoin and other cryptos are set to create a historic “tectonic shift” in the world’s monetary order.

In fact, I believe the December 2017 all-time high will soon be left in the dust and take its place among the historical markers of past highs.

The Basics of Bitcoin and the Cryptocurrency Market

Most cryptocurrencies have strict limits on how many currency units can be created.

Take Bitcoin, for example. Bitcoin’s designer made it so only 21 million Bitcoins can ever be created. And the coins can only be created by a process called “Bitcoin mining.”

That’s the process of using powerful computers to solve extremely complicated math puzzles, which are woven into the currency’s design. When someone solves one of these puzzles, they are rewarded with Bitcoin.

I won’t bore you with the specifics of the math problems. Just know that they are highly complicated. Solving the puzzles requires loads of powerful computers consuming lots of electric power.

All this puzzle solving is creating a whole new kind of thinking regarding money and how it should work. And it’s creating a challenger to the U.S. dollar…

What is a Reserve Currency?

A major reason the U.S. has been the world’s most powerful country for generations is because the U.S. dollar became the world’s “reserve currency” after World War II and has remained so ever since.

A reserve currency is the medium of exchange everyone agrees will be used as the standard in world trade. It’s the currency most often used by individuals, governments, and corporations when they spend money, save money, borrow money, and transfer money. It’s the currency folks hold as “back up” in case their other assets are not accepted.

It’s good to be the nation with the world’s reserve currency.

It makes it easy for the nation’s citizens, its businesses, and its government to spend, borrow, save, spend, and transfer money around the world. It also ensures that your nation’s currency is constantly in demand around the world. This provides sort of a monetary “buoyancy” for an economy.

So you can see why the dollar’s role as the world’s reserve currency gives the U.S. a tremendous amount of global power and influence.

And while cryptocurrencies are unlikely to supplant the U.S. dollar as the world’s currency for the next decade, they very well could join the dollar, the euro, and the yen as members of the “major world currencies” club. The citizens of the world are hungry for this development.

In the next section, I’ll show you why… and I’ll show you how the ascension of cryptocurrencies onto the “major world currency” stage could send the value of the cryptocurrency market up by more than 100-fold.

Why Bitcoin Could Grow 126-FOLD in Value

In early October 2019, the entire value of the cryptocurrency market was over $204 billion.

At the same time…

The total value of outstanding U.S. dollars was $15 trillion (according to the Federal Reserve Bank of St. Louis).

The value of outstanding euros was $13.6 trillion.

The value of all Japanese yen was $9.5 trillion.

Now here’s where the math gets interesting…

If the cryptocurrency market were to grow to the size of the Japanese yen market, it would grow in size by more than 4,557%.

If the cryptocurrency market were to grow to the size of the euro market, it would grow in size by over 6,567%.

If the cryptocurrency market were to grow to the size of the U.S. dollar market, it would grow in size by more than 7,253%.

As you can see, although the Bitcoin market is valued at over $204 billion, it’s microscopic compared to conventional currency markets.

Even if Bitcoin grew in size to be just 10% of the euro market, it would climb over 567%.

If this were to happen, investors who take their stakes now could reap life-changing wealth.

The “Halving Catalyst”

Power hungry, big-spending central bankers aren’t the only catalyst for Bitcoin and other cryptocurrencies out there at the moment. Far from it.

In fact, one of Bitcoin’s most potent catalysts to a higher price is much closer than you might think.

And the effectiveness of this catalyst has a lot to do with some of Bitcoin’s fundamental properties, including a phenomenon known as Metcalfe’s Law. It’s really just a way to value telecommunication networks.

See, Bitcoin is a cryptocurrency that also serves as a store of value, because, like gold, there is a limited supply. That means no central authority can step in and make more Bitcoins available for purchase, thereby inflating the supply and diluting the value.

But Bitcoin can also be thought of as a network of computers located around the world (and even in space) called nodes that run its open-sourced code. The Bitcoin network also consists of the people and companies that run the Bitcoin code and maintain the Bitcoin blockchain, the ledger of all activity or transactions that have occurred.

According to Metcalfe’s Law, the value of a communication network is proportional to the square of the number of users. The more users, the more the value. The law is a good way to value Bitcoin, historically, and can help predict what will happen in the future.

Now for the catalyst I mentioned… and if you have one nearby, pull out a pen and mark this date on your calendar. You won’t regret it.

May 20, 2020.

On that day, something will happen that, if historical precedent holds true, could forever alter the price of Bitcoin to the upside, and make you pine for the early days of $10,000 Bitcoins.

I’m talking about Bitcoin’s “halving” event. This is a feature built into Bitcoin related to Bitcoin mining..

When the right computer (anyone can participate) hits on the right answer, new Bitcoins are produced. The actual process is very complicated, but suffice it to say, mining Bitcoins in this way helps to verify legitimate transactions in a “block” of transactions on the Bitcoin blockchain. It helps secure the Bitcoin network from approving fraudulent transactions. And it provides a nice living for successful miners — all-time revenue for Bitcoin miners recently topped $14 billion, according to Coin Metrics.

In return for this computational work that requires a lot of electric power, Bitcoin miners who successfully solve the math puzzles are rewarded with Bitcoin themselves, called the “block reward.”

That block reward is literally halved every 210,000 blocks, or about every four years.

In 2009, when one Bitcoin was still worth pennies, the block reward was 50. It’s currently at 12.5. Soon, it will be halved again to 6.25.

Here’s where it gets interesting…

Prior Bitcoin halvings have led to large price spikes one to two years after.

The exact reason is not yet clear to researchers, but I believe this rise can be attributed in part to the basics of supply and demand.

See, with less block reward, less supply enters the market as we approach the final and total 21 million supply of Bitcoins.

That falling off in the rate for mining blocks in turn decreases the pace of the circulating and new supply of Bitcoins.

As the supply decreases — and if the demand continues to increase — prices rise.

In the chart below, you can see that Bitcoin halvings in 2012 and 2016 were followed by 10-fold Bitcoin price increases. Following the halving in 2012, the price rose from $10 to over $100. After the halving in 2016, the price climbed from $1,000 to over $10,000.

While many everyday investors may not know about this Bitcoin halving phenomenon, Bitcoin miners certainly do. And they’ve already begun to hoard Bitcoin ahead of the event, according to Brian Kelly, founder of the digital currency investment firm, BKCM.

Like me, they’re looking for a big run up in Bitcoin’s price to take place, and preparing ahead of time…

The ETF/Futures Catalyst

Imagine a world where investors can jump into or out of a stake in one of the hottest tech trends in existence right now. All they’d have to do is call up their broker or go online to their brokerage account and set up a simple trade.

That’s right, imagine getting a piece of Bitcoin’s price action without actually having to directly buy it from a crypto exchange, store it, sell it, or worry about losing your account password, and thus your Bitcoin.

It’s the type of situation that could send Bitcoin soaring into the stratosphere as more and more people jump in with relative ease, and without all of the computer security headaches or the potential for losing that private key to your Bitcoin in the wash.

The idea is not so far-fetched.

Since 2017, various parties have attempted to get the Securities and Exchange Commission (SEC) to approve a cryptocurrency-based exchange traded fund (ETF), though none have been given the nod.

The SEC sure likes to take it’s time.

But they claimed to have investors’ best interests at heart when, back in 2017, they rejected the Winklevoss twins’  Winklevoss Bitcoin Trust. (If that name sounds familiar, it’s because twins are famous for their early involvement in Facebook.)

Investors could get duped, the SEC said, as the crypto exchanges on which Bitcoin is mostly traded are for the most part unregulated to a degree that leaves the market susceptible to fraud and manipulation.

Still, VanEck and SolidX announced their plans for the VanEck SolidX Bitcoin Trust ETF focusing on institutional investors in 2018. It boasts an insurance component that would help protect shareholders against the operational risks of buying and holding Bitcoin. Bitcoin ETF proposals from Bitwise and Wilshire Pheonix have also been in the mix.

Out of more than 25 requests, the SEC has yet to approve a single Bitcoin ETF thus far, citing various regulatory concerns. But things are changing. Even SEC Commissioner Robert Jackson said in early 2019 that he believes an ETF will eventually meet the commission’s standards.

In early September 2019, VanEck Securities and SolidX Management announced they’d take a different route to bypass the regulatory hurdles they’ve come up against so far.

They’re using an SEC exemption (Rule 144A) to offer a product that’s like a Bitcoin ETF, but is for institutions such as hedge funds and banks and not everyday investors.

It’ll allow for the creation and redemption of shares, like an ETF, but unlike an ETF, those shares won’t be available on a national exchange. Instead, these institutional investors will be able to buy or sell on an over-the-counter trading platform.

With established clearing and settlement processes, not to mention insurance against theft or loss of the Bitcoin private keys held by the trust, it’s just the sort of product that these massive investment players need before they can dive in.

And as they do, they’ll help launch the price of Bitcoin like a rocket.

Of course, a crypto ETF is only part of the investing picture here.

There’s also Bitcoin futures.

Futures are essentially agreements to buy or sell an asset at a future date. With futures, traders can hedge against unfavorable future price changes, or use leverage to invest in the future price movement of an asset.

They also can bring in needed liquidity and price discovery to burgeoning markets like cryptocurrencies.

Look what futures did for the gold market. The futures trading volume now far surpasses the spot market volume.

The Growth of Asset Classes

In December 2017, CBOE Global Markets and the Chicago Mercantile Exchange (CME) started the first Bitcoin futures contracts in the U.S., essentially making the largest crypto asset available for trade via futures.

Futures are essentially agreements to buy or sell an asset at a future date. With futures, traders can hedge against unfavorable future price changes, or use leverage to invest in the future price movement of an asset.

Over the past year, the cryptocurrency futures trading platform called Bakkt has been one of the industry standouts as it’s sought approval for its physically delivered Bitcoin futures product.

Being physically delivered just means that when the account is settled, the payout is in actual Bitcoin, instead of being converted to cash.

Bakkt, which is a subsidiary of Intercontinental Exchange, the company that owns the New York Stock Exchange, among others, was cleared to launch its product for institutional investors starting September 23, 2019.

The firm created its own trust company, Bakkt Trust Company, which serves as a qualified custodian, while its Bakkt Warehouse will custody Bitcoin for the physically delivered futures. The warehouse will be protected by a $125 million insurance policy.

It’s just the sort of tested and regulated infrastructure from a highly reputable organization that institutions need to make a big play in Bitcoin.

The Strength of Being Uncorrelated

Sometimes it pays to be a lonely, uncorrelated asset.

What am I talking about?

Correlation in assets is a measure of how investments move in relation to one another — either together or in opposite directions.

For highly correlated assets, prices seem to move in tandem, while uncorrelated asset prices don’t seem to have an affect on one another at all.

Now, when you’re going about filling out your investment portfolio, a great way to reduce risk, and potentially boost returns, is to fill it in such a way that not every asset is correlated to everything else.

That way, if one or more trades starts to go south, you can balance out any potential downside with your uncorrelated play.

And I’m here to tell you that Bitcoin is just such a play.

Institutional investors have started to figure this out, as finding uncorrelated assets is a key duty for the money managers who are thinking about investing some of the vast sums at their disposal in a new asset class.

That’s particularly true at times when the market is volatile, such as when the ongoing threat from a trade war sends stocks yo-yoing on any given day, depending on the latest political salvo.

In May 2019, for instance, when tariff threats were flying back and forth between the U.S. and China, Bitcoin rose over 55%. And it had a negative correlation to both the S&P 500 and to gold.

Marcus Swanepeol, a former Morgan Stanley and Standard Chartered banker who now runs the crypto company Luno, recently told the Financial Times that over the past two years, he’s seen more evidence that institutional players view Bitcoin as an uncorrelated asset.

That gives the pension funds and family offices of the world yet another reason to stock up on Bitcoin when markets have short-term volatility risk s as they do today.

Why Cryptos Are About to Get a Lot Less Volatile and Explode in Popularity

If you spend 10 minutes researching Bitcoin, you’re sure to come across people who claim that increased government regulation will be bad for cryptocurrencies.

For example, in 2018, the Nobel Prize winning economist Joseph Stiglitz said regulation of Bitcoin will render it useless, since it will curb demand from folks who want to operate in secrecy (like money launderers and drug dealers)

I believe the opposite.

There is a time and place for regulation… and this is one of those places. In fact, I believe that more regulation of Bitcoin and the cryptocurrency market will massively increase the popularity of cryptocurrencies, make them less volatile, and send their values much, much higher.

Big banks and other big financial institutions don’t like to spend hundreds of millions of dollars setting up systems for trading unregulated assets. Doing so puts them at great risk of landing in hot water with the government.

Big banks will only spend large amounts of money on creating market infrastructure for an asset (like stock markets, futures markets, options markets, and record keeping systems) if that asset is approved by the government and regulated.

That’s why the more regulation there is for an asset, the more financial institutions will set up systems for transacting, storing, trading, and investing in that asset.

The more regulation there is for Bitcoin — and more is happening every day — the more the market for Bitcoin futures, Bitcoin options, and other derivatives will grow… and the more the crypto market will be seen by the public as a real, legitimate asset class.

As more and more people transact in Bitcoin, Bitcoin futures, and Bitcoin options, they will reduce Bitcoin’s volatility and make it more attractive to hold.

This will further increase interest in Bitcoin, Bitcoin futures, and Bitcoin options… which will further decrease Bitcoin’s volatility… which will make it even more attractive to hold.

In other words, I believe Bitcoin will enjoy a virtuous, self-reinforcing cycle of less volatility and more public participation… which will lead to even less volatility and even more public participation… which will produce a huge increase in the size and power of cryptocurrencies.

Frequently Asked Questions

How do I buy bitcoin or other cryptocurrencies?

This is the number one question I received from people interested in cryptocurrencies. Unfortunately, you cannot log into your online brokerage account and place a buy order for Bitcoin at the current price. I do believe one day soon that will be an option, but for now it is a little more tedious.

The first step is to decide on the cryptocurrency exchange.

A good place to start is with Coinbase, which is currently the largest cryptocurrency exchange. Nothing is guaranteed, but it is often considered the safest of the exchanges.

Below, I’ve laid out the steps of how to open your own Coinbase account.

Step 1: Open an account.

Create your Account

Step 2: Verify your email.

Verify your email

Step 3: Add your phone number. This double verification is for added security.

Add a phone number

Step 4: Verify your identity.

Verify your identity

Step 5: Complete your profile.

Complete your profile

Step 6: You have the option to send and receive digital currencies. This will be needed if you intend to buy cryptocurrencies outside of the nine coins currently available on Coinbase. You will need to take a picture of the front and back of your driver’s license or ID card. You can do this with a webcam or a camera on your phone.

Send and receive digital currencies

Step 7: Add your bank account, debit card, or wire transfer information.

Add information

Step 8: Buy one of the nine coins on Coinbase. The screenshot below shows how a $500 investment would get you 0.7287196 Bitcoins. This includes the Coinbase fee of $7.34.

Buy a Coin

What is a cryptocurrency exchange?

A platform that allows an investor to buy and sell cryptocurrencies. Depending on the exchange, it may be possible to exchange cryptocurrency for cryptocurrency or fiat currency for cryptocurrency. Examples of fiat currency are the U.S. dollar, the euro, etc.

The larger coins such as Bitcoin, Ethereum, and Bitcoin Cash can be purchased with fiat currencies easily. Smaller coins, often referred to as alt-coins, are not as liquid and must often be purchased with other Bitcoin or Ethereum.

For example, on Coinbase, you are able to buy Bitcoin, Bitcoin Cash, Dai, Ethereum, Ethereum Classic, LINK, Litecoin, XLM and XRP with U.S. dollars. On the Gemini crypto exchange, you will be able to buy Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and Zcash with U.S. dollars.

There are a handful of other exchanges that will allow purchase of a few coins with U.S. dollars. However, when you start to look at buying coins not in the top 10 based on market cap, it gets a little more difficult to trade.

What is a wallet?

A wallet is the equivalent of a bank for fiat currencies. The wallet will allow you to store your Bitcoin as well as accept and make payments.

The wallet is important because it contains the private keys needed to access your Bitcoin.

There are several types of wallets available. Hard wallets are physical devices that are not connected to a computer or the internet and therefore are extremely secure and cannot be hacked. That’s the upside. The downside is that you must not lose your hard wallet or you will lose your coins.

Another popular type of wallet is often referred to as a hot wallet. A hot wallet is on a connected device such as your desktop, phone, etc. One benefit of this is that you can easily access your coins to make purchases and accept payments. The big downside is that your wallet could be hacked and your coins stolen because anything on the internet is susceptible to a cyberattack.

Which wallet is best for you?

If you are planning on creating a long-term portfolio, the best option is a hard wallet. You can well sleep at night knowing your coins are safe. On the other hand, if your goal is to make purchases and accept payments on a regular basis, a hot wallet would be the better option.

Again, there are pros and cons with both wallets. But, as the industry continues to grow, so will the wallet options. More major players in fintech are getting into the industry and this will lead to better security and easier transactions.

Bitcoin Is the Future

As I’ve shown you, governments and politicians at home and abroad pull all kinds of crazy tricks that wind up inflating their home currencies and diluting the value of diligent savers.

Bitcoin and other cryptocurrencies represent a new way to store value, no matter what instabilities may arise. And I’ve explained factors like the Bitcoin halving that will serve as near-term catalysts to this long-term play.

Cryptos are like a new gold, a digital gold whose value will only increase over time as more players — from institutional investors like hedge funds and family offices down to everyday investors — see what I have seen for some time now.

That Bitcoin is the future of money.

It’s time to start living your dreams with the Investment Opportunities strategy

If you know anything about the stock market, you know the power of being “first.”

Consider the power of being the first to know how a new technology called “fracking” was allowing American oil firms to tap vast new deposits.

Investors who got this knowledge first made life-changing 8,400% gains in fracking company Kodiak Oil & Gas…. 3,200% in Bringham Exploration… and 5,800% in XTO Energy.

Or take the power of being among the first to know in 1992 how a new development called “the Internet” was set to change the way we work and live.

Investors with access to this knowledge made over 9,000% in software maker Microsoft… and more than 10,000% in Internet plumbing maker Cisco.

A 9,000% gain turns an investment of $10,000 into $910,000.

That’s an investment return that can allow you to afford virtually any kind of lifestyle you like. You can buy boats, sports cars, vacations, and homes with that kind of money… or simply never work again.

Wall Street won’t tell you this, but by the time the general public hears about a major investment trend, the big money has already been made… by those who got there FIRST.

The people who buy stocks once a big trend goes “mainstream” often buy at the top and suffer big losses.

The power of being first is why I’ve dedicated my career to getting investors into the world’s biggest, most revolutionary trends BEFORE anyone else.

Take the people who got to the electric car trend first in 2012.

Driven by early sales and the promise of pollution-free electric cars, Tesla shares climbed from $25 to $283 per share in less than three years… a 1,044% gain.

Tesla Chart

I know gains of 1,000%… 5,000%… and 9,000% sound outlandish.

But those are exactly the kind of gains earned by investors who get to big, world-changing trends first.

As a reader of Matt McCall’s Investment Opportunities, you’ll hear all about the next trends poised to hand investors 1,000%+ gains… and you’ll get specific and actionable recommendations for taking advantage of them.

Even better, you’ll be the first one in your neighborhood… the first one in your company… among the first people in the world to know about them.

Why Millions Tuned in to Hear My Ideas

Seventeen years ago, I was a high-powered broker for financial giant Charles Schwab.

But even though I quickly gained wealth, authority, and influence…

It didn’t feel right to me. I wanted to be someone who helps people make money for themselves… not someone who makes money from investors… which I find disgusting.

So, I walked away from a promising career in 2002 to do what really inspires me: helping individual investors just like you reach financial independence.

I wanted to reach folks who live on Main Street — not Wall Street — just like my family and my friends… the very backbone of America.

That’s why I became chief technical analyst and co-host of the nationally syndicated radio show, Winning on Wall Street. I did this to get my message out, and help educate as many investors as possible.

And that’s why I founded Penn Financial Group, a registered investment advisory.  I wrote two investment books, with my latest — The Next Great Bull Market — a top seller for over two years.

I’ve made over 1,000 television appearances, on networks like CNBC, Fox News, and Bloomberg TV… eventually becoming a nightly co-host on Fox Business.

Logos

You may have seen my articles in The Wall Street Journal, Business Week, and Investor’s Business Daily, to name a few.

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I’m not saying any of this to brag… only to show you that I know what I’m doing.

But you know what?

None of those credentials matter much if you don’t make people money.

That’s exactly what I do…

611% Gains In the Future of Energy

You’ve probably heard how the technology of “fracking” has allowed oil producers to tap vast amounts of new oil and gas in America.

Fracking has allowed America to drastically reduce its reliance on foreign energy sources. America is producing so much oil and natural gas that it’s beginning to export natural gas to energy-hungry Asian markets.

My readers and I got to this story first and bought shares of Liquefied Natural Gas Limited — a company that builds the expensive facilities the U.S needs to export its new energy bounty.

We made 611% on the position in less than a year.

That kind of gain turns a modest investment of $10,000 into $71,100, a cash profit of $61,100.

What would you do with an extra $61,000 this year?

LNGLY Chart

Making 324% Gains on the Bitcoin Boom

The recent cryptocurrency boom is one of the biggest wealth-creation events in modern history.

My readers and I were right there profiting from it.

In 2017, I recommended Bitcoin Services, a small company that mines the popular cryptocurrency Bitcoin.

We made 324% on the position… in less than two months!

Bitcoin chart

Making 253% Gains on the Drone Boom

As you read this, the world is in the midst of a “drone boom.”

The growth of unmanned planes that can fly themselves (or be flown by an operator on the ground) is growing by leaps and bounds.

Drones are such big assets to the military because they keep human personnel out of harm’s way.

My readers and I were on to this boom very early. In 2013, we bought shares of Elbit Systems, one of the world’s leading drone makers.

As of early 2018, we’d more than tripled our money.

ESLT Chart

“…I feel financially secure for the first time ever!”

By getting to the biggest opportunities first and helping regular people make big money, I’ve received letters of thanks from folks like Jennifer S:

“Thank you, Matt., Because of your EXCELLENT Newsletter, my sister and I were able to keep our business intact during this down trend in the economy… and keep several people employed. Things are looking better now & I don’t see how we could have gotten to this point without you."

And Mike A. wrote in to say:

“Matt, THANK YOU! You have helped me … and as a result I feel financially secure for the first time ever!”

And Alexander V. wrote:

“I love your services. I am 5 years away from retirement and appreciate your 80% win rates.”

And Bob S. wrote in with these words of thanks:

“Keep up the excellent work on our behalf. I currently am involved with another service that while more costly doesn’t hold a candle to your standards.”

How to Join Our “Club”… RISK FREE

If getting to the world’s biggest investment opportunities FIRST and making triple-digit gains sounds good to you, here’s how to join our “club.”

Investment Opportunities costs $99 for one full year.

Considering everything you get, I think it’s a great bargain:

And that’s just the beginning.

I’m confident you can see that $99 is a great bargain.

I think that’s an incredible deal for what you get.

And the best part is, my publisher and I are not asking you to commit to anything. We’d like you to take the next 30 days to decide whether or not you want to keep your subscription.

That should give you plenty of time to review my work. If you decide Investment Opportunities isn’t right for you, just give us a call. We’ll be happy to issue you a full refund. You’ll risk nothing.

Simply click the button below to get started immediately.

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Signed:
Matt McCall
Editor, MoneyWire

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