By Justin Spittler, editor, Casey Daily Dispatch
The White House is watching bitcoin.
Germany’s central bank recently called it a “speculative plaything.”
The European Central Bank (ECB) thinks bitcoin is “a sort of tulip.”
The Royal Bank of India is telling people to avoid it like the plague.
I could go on and on.
My point is that every government in the world is nervous about bitcoin.
And they should be…
• Bitcoin is a direct threat to their monopoly on money…
That’s because, as regular readers know, bitcoin is unlike every paper currency on the planet.
It’s decentralized. This means it’s not controlled by any government or central bank.
That’s why many people, especially its early adopters, bought bitcoin. But that’s not the only thing that makes it special.
• The supply of bitcoin is predetermined…
It’s set to grow at a fixed rate over the next 123 years.
Not only that, the supply of new bitcoins that enter the economy is set to decrease by 50% every four years.
This will continue until the very last bitcoin is mined in 2140.
This practically ensures that bitcoin will become more valuable over time.
• Paper currencies are a much different story…
Governments can create them at will. They’ve been doing this since the dawn of time.
Of course, “money printing” comes at a steep price. Eventually, it destroys the value of paper money.
If unchecked, it can even render a currency completely worthless.
That’s why hundreds of paper currencies have failed throughout history.
• Unfortunately, central bankers have yet to learn their lesson…
They continue to print money by the boatload.
They do this to fund wars, entitlement programs, and a host of other bad ideas.
Because of this, practically every paper currency in the world is approaching its intrinsic value of zero. It’s one big race to the bottom.
I’m not just talking about the currencies of places like Zimbabwe and Venezuela, either.
• Major currencies are also in serious trouble…
That’s because the Federal Reserve, the ECB, and the Bank of Japan (BoJ) have been printing money with reckless abandon for nearly a decade.
In fact, they’ve created more than $12 trillion since the 2008 financial crisis.
Unfortunately, this money printing has done almost nothing for the “real economy.”
The U.S. economy, for one, is recovering at the slowest rate on record. Japan’s economy, on the other hand, has grown just 1% over the last 20 years.
About all these “stimulus” measures have done is rob everyday people of purchasing power.
Just look at the U.S. dollar.
It’s lost 97% of its value since 1913.
As if that weren’t bad enough, there’s nothing to stop the Fed from printing more money during the next financial crisis.
• Because of this, many people are losing faith in paper currencies…
…and turning to bitcoin.
It’s a big reason why bitcoin is up 1,937% over the last three years.
That makes the dot-com stock boom look like child’s play.
More importantly, bitcoin looks like it’s now here to stay after its meteoric rise.
That terrifies central bankers…
So, they’re doing everything they can to stop people from buying it.
They’re calling it a “ponzi scheme.” They’re saying only criminals use bitcoin.
But these scare tactics aren’t working. People just keep piling in.
So, consider speculating on bitcoin if you haven’t already.
Just remember to treat bitcoin like a speculation. In other words, don’t “bet the ranch” on bitcoin. Only speculate with what you can afford to lose.
If I’m right about this, you won’t need to bet a lot of money to make a fortune.
New Orleans, LA
December 13, 2017
P.S. Doug recently bet $100,000 on cryptos. That’s a huge bet.
But he recently made an even bigger bet on an asset class that no one’s talking about. It’s Doug’s biggest speculation to date.
Unfortunately, that’s all I can say about this today. But you can learn all about Doug’s big speculation by signing up for tomorrow night’s free webinar, where he’ll share all the details. Click here to reserve your spot for this exclusive event.
Chart of the Day: The Biggest Crypto Catalyst Yet
By Joe Withrow, analyst, Casey Research
Unless you haven’t been paying attention at all, you probably know that cryptocurrencies have been on a tear in 2017. In fact, the entire cryptocurrency market has grown by 2,605% this year.
What you may not know is that half of this growth came in just the last month, as you can see from the chart below.
There were several catalysts for the massive rise in cryptos throughout 2017… but excitement surrounding the CBOE’s Bitcoin futures exchange is largely responsible for the massive spike higher since November.
The CBOE is the world’s largest options exchange. It began offering Bitcoin futures on December 10… and $118 billion has flowed into the cryptocurrency market since. Much of this likely came from hedge funds buying cryptos for the first time.
You see, many hedge funds will only invest in a market where they can take both sides of the trade to hedge risk… which is what futures contracts allow them to do. They can take a net long position… but limit downside risk with a smaller short position in case Bitcoin falls in price.
This “hedge” allows hedge funds to pour money into cryptocurrencies… and the cryptocurrency market has grown by 30% in the last three days alone.
And it’s just beginning… the CME Group is launching its Bitcoin futures exchange on December 18.
With hedge funds ready to pour in, cryptocurrency growth in 2018 could be even more explosive…
Today, a reader responds to our recent essay: “Buy This Metal to Profit From the Green Energy Revolution”…
I am a huge believer in renewable energy and Electric Vehicles, and it’s not just because I think climate change is a real issue. Whilst it’s clear that both these technologies are reaching a point where they are economically competitive with fossil fuels, I also see a huge synergy between the two, which appears to have been overlooked. The biggest problem with renewable energy is clearly that it doesn’t always appear at the time we need it.
On the other hand, the largest part of the cost of electric vehicles is the expensive batteries required to store enormous amounts of electricity for the rare occasion when the maximum range is required. With the assistance of a little artificial intelligence, these could work together to solve both problems. If all idle electric vehicles were connected to the grid and their batteries were available to store or discharge electricity as needed, it’s obvious that both technologies would be even more viable than they already are.