By Justin Spittler, editor, Casey Daily Dispatch
Follow the money.
We’ve all heard the saying. It was made popular by the 1976 film All the President’s Men.
It means that you can find the source of political corruption by following the paper trail.
But investors can also use this same strategy to make huge returns. You just need to watch what the “smart money” is doing.
I’m talking about major institutional investors like hedge funds and big banks. These institutions are run by some of the smartest people on the planet. They have billions, sometimes trillions of dollars at their disposal. And they have information that the average person will never get their hands on.
In short, they have a huge edge on everyday investors. That allows them to spot and profit off big trends long before Joe Sixpack even knows what the heck’s going on.
I’m telling you this because one of the world’s most powerful financial institutions just made a game-changing acquisition… one that could soon send a tidal wave of capital into the cryptocurrency market.
I’ll tell you why in a second. But you should first know who made this acquisition…
• Circle bought Poloniex for $400 million on Friday…
Circle operates a peer-to-peer payment app. It allows people to transfer money from one currency to another instantly.
Poloniex, on the other hand, is a major cryptocurrency exchange. It’s the 14th biggest in terms of volume. Every day, it handles more than $2 billion in trades.
Circle did this deal for two reasons.
Number one, it’s developing a mobile app that will allow people to easily buy and sell cryptos. And two, the crypto market is exploding.
At the start of 2017, the entire market was worth less than $20 billion. Today, it’s worth more than $450 billion. That means the market grew more than 20-fold in just 14 months.
That’s astonishing. But Circle co-founder Jeremy Allaire says this market’s just getting warmed up:
These markets are still in their infancy but they hold enormous promise… There's going to be a huge amount of value creation… Maybe the first $1 trillion company in the world will be created in this space.
But that’s not the only reason you should care about this deal.
• Circle is backed by Goldman Sachs…
And as I’m sure you know, Goldman Sachs is one of the most powerful financial institutions in the world.
According to Reuters, it signed off on this deal:
Circle’s founders said they had discussed the acquisition with all of their investors, as well as with regulators.
Regular readers know why this is a huge deal. In short, big banks have been highly critical of cryptocurrencies—until recently.
For example, JPMorgan Chase’s CEO Jamie Dimon infamously called bitcoin a “fraud” in September 2017. But now, he and other banking tycoons are backpedaling.
They’re starting to say encouraging things about cryptos. More importantly, as the Circle acquisition shows, they’re putting their own money into the space.
• This tells us that cryptocurrencies aren’t a fad…
They’re here to stay.
Not only that, this recent deal between Circle and Poloniex could soon send billions into the crypto market.
I know that’s a bold statement. But I’m not the only one who believes this. Palm Beach Letter editor Teeka Tiwari says that this could be a game-changing deal for the crypto space. Yesterday, he explained why in a private email to me:
In January, I wrote that 2018 will be the year that institutions start getting into cryptos. With this deal, it looks like Goldman Sachs may be building an institution on-ramp into crypto through the moves it’s making with Circle and the Poloniex acquisition.
I say that because according to a leaked document (which has been unverified), Circle looks like it wants to make Poloniex an SEC-compliant exchange.
Teeka knows more about cryptos than anyone I know. In fact, he’s one of the world’s leading experts in the space. And he says this could have huge implications for the market:
This would allow an institution to trade through Poloniex without fear of running afoul of regulators. If that leaked document is true, then it suggests we may witness a sea of institutional money come into crypto via Poloniex sometime this year.
• This is something you obviously want to get in front of…
So, consider speculating on cryptos if you haven’t already.
Of course, I realize that most people don’t know where to start when it comes to cryptos. They can’t tell the difference between a scam coin and one that’ll be around for decades.
That’s where Teeka can help.
He’s traveled the world and met with the top insiders to learn as much as he can about the booming crypto market.
And his boots-on-the-ground research has helped his Palm Beach Letter subscribers make life-changing returns following his recommendations.
And I’m not just talking about bitcoin, which is up 2,307% since he recommended it in April 2016. Teeka has a whole portfolio of the most explosive crypto plays… all set to soar in 2018.
You can learn how to get in on the action here.
March 1, 2018
P.S. Teeka says the crypto mania isn’t over… It’s just getting started. And an event set to occur as early as April 2 is set to launch a second, massive run-up. Bitcoin’s price could soar 20 times higher.
He’s found three plays that could soar even higher than bitcoin. Here’s everything you need to know to profit…
Doug’s New Interview
Doug was recently interviewed on The Jay Kim Show. It’s a fantastic episode and we urge you to check it out. In it, Doug discusses:
Today, a reader responds to John Hunt’s recent essay, “Health Insurance Is the Problem, Not the Solution”…
John speaks of mandates, such as Obamacare, that are forcing people to obtain insurance. In a sense, Americans have been conditioned to accept mandated insurance via their automobile insurance. In that case, it's required by law and you can be fined or jailed for driving without insurance. I read elsewhere the opinion that "insurance" is the biggest and safest money-maker to invest in. Individual companies may go bankrupt (think property insurance after a major hurricane) but there will always be insurance. Mandated insurance reminds me of the gangster who offers "protection" to the small business owner for a weekly cash skim. Can we afford to refuse?
If you have any questions or suggestions for the Dispatch, send them to us right here.