The Federal Reserve is holding interest rates steady.

Yesterday, in its final monetary policy decision of the year, the Federal Open Market Committee (FOMC) said it’ll keep its benchmark rate between 1.5% and 1.75%.

It thinks it’s the best move right now. Maybe it’s right. Maybe it’s wrong.

After all, the Fed’s just doing what it does best: manipulating the markets… “fine tuning” the economy…

Whether it’s a slight raise here… a cut there (like it’s done three times this year)… or keeping everything the same, one thing is clear:

These central bankers control everything. And we’re left watching the circus.

  • But here’s the thing…

You can take action today to protect yourself from central bank manipulation.

Now, one way to do it – as we’ve said many times at Casey Research – is with physical gold.

It’s the world’s ultimate safe-haven asset.

Unlike the dollars in our wallets, gold’s worth doesn’t depend on any government. Unlike fiat currency, gold can’t just be printed out of thin air.

Gold is sound money. It’s durable, divisible, consistent, convenient, and has intrinsic value.

But it’s not the only way to protect yourself from whatever the central bankers decide to do in 2020 and beyond.

There’s another asset that serves a similar purpose…

  • I’m talking about bitcoin…

Now, we all know bitcoin’s one of the world’s most explosive assets.

It goes through some of the wildest price swings in the market.

After a dismal 2018, when it plummeted 73%… bitcoin rallied back big time in 2019. It’s up 93% year-to-date. Take a look:

Chart

But you shouldn’t just view it as a speculative vehicle.

That’s because the world’s most popular cryptocurrency is also a way to play defense against the Fed’s radical monetary experiment.

It shares many of the same characteristics that gold does. As our founder Doug Casey lays out in this article, bitcoin passes the test as a form of sound money.

Casey Report chief analyst Nick Giambruno agrees. Here’s how he puts it:

Bitcoin shares many of the same attributes of gold that make it attractive as money. It’s durable, divisible, convenient, consistent, and has tremendous value as a transfer mechanism that is outside of anyone’s control.

People all around the world determined that bitcoin has value to them. They voluntarily chose to exchange other forms of value for bitcoin. They did not choose bitcoin because of legal tender laws, or because government decrees forced them to, as they do for fiat money.

That brings up an important point. The Oxford English Dictionary defines fiat money as “inconvertible paper money made legal tender by a government decree.”

Bitcoin is clearly not fiat money.

It’s money because the free market says it is, not because some government decrees it.

Bitcoin also has no central authority. Instead, it runs on a secure decentralized network scattered around the world on thousands of computers.

Bitcoin does not rely on so-called “trusted” intermediaries or third parties. It has no counterparty risk and no single point of failure. Unbreakable encryption helps secure the network.

  • As Nick points out, bitcoin is “decentralized”…

That means no single person, company, or government controls it. Its network of users controls it.

But that’s not the only advantage.

Nick says its scarcity also makes bitcoin extremely attractive today.

Unlike paper money, bitcoin’s supply is fixed. Nick again:

According to the bitcoin protocol, there will never be more than 21 million bitcoins. As of writing, there are 18.1 million bitcoins in existence, or about 86% of the total potential supply.

The remaining 14% of new bitcoins will be added, through the block subsidy, at an ever-decreasing rate.

  • These are all reasons why bitcoin is more than just a speculative asset…

And here’s one final note from Nick:

While bitcoin shows great promise, it’s still a new technology. It doesn’t have a track record that stretches for thousands of years like gold. Bitcoin is a new type of asset that is at the earliest stages of possible monetization.

I don’t see bitcoin as a substitute for or competitor to physical gold. Nor do I think it’s a threat to gold’s value proposition. Gold is the best way to preserve wealth over the long term.

Instead, I see bitcoin as a complementary tool for advancing your financial freedom. 

If you haven’t already, consider adding some bitcoin to your portfolio today.

Regards,

Chris Reilly
Managing Editor, Casey Daily Dispatch

P.S. Nick recently sat down with Strategic Wealth Preservation, an international precious metals dealer, and shared his thoughts on topics like gold, silver, investing in crisis markets, and numerous other trends.

It’s a terrific interview that you don’t want to miss. You can watch it by clicking here or by clicking on the image below.