People will look back at this and go crazy over how obvious #Bitcoin was. Do you want to be among those who regret?
Everyone deserves #Bitcoin at the price they acquired it at, and I'll leave it at that.
DIfFERENCE BETWEEN Rich People and Poor People:
When Walmart has a SALE poor people rush in and buy, buy, buy.
Yet when the Financial Asset Market has a sale….a.k.a…..CRASH…
the poor sell and run….while the rich rush in….and buy, buy, buy.
The gold, silver, and Bitcoin market just crashed….a.k.a. went on sale…and I am waiting….with cash in hand….to begin to buying more gold, silver, and Bitcoin….on sale.
What are you going to do?
Gold is headed for new highs.
Central banks around the world are racing to secure more of it before the global sovereign debt super-bubble implodes.
And it's worth paying attention to what the most powerful entities in the world are fighting over.
Take Italy for example.
If we ignore China's mountain of unreported gold, Italy has the third highest reserves in the world.
How do they have so much?
Italy was an economic powerhouse post-WWII.
And they were smart enough to convert their dollar surplus into gold before the US closed the gold window in 1971.
They never sold their gold.
Now that the world is clearly transitioning back to gold as the neutral collateral of choice, Italy is making it clear that their gold holdings belong to the ITALIANS and not Europe as a whole.
Naturally the European Central Bank is not pleased about this.
Which is why they've been strongly urging Italy not to codify this idea into law.
If you read between the lines, you'll see that the global central banks realize the system is on a crash course with insolvency and Gold is going to play a key role in the eventual reset.
So where does that leave you as an investor?
It's critical you understand the importance that scarce neutral assets are going to play in the coming years.
Bitcoin has been greatly outperforming gold since 2020, but the truth is that the institutions that control global capital are all fighting over gold. For now.
The system is headed for a reset.
Knowing what I know, I can't imagine not holding both gold and Bitcoin right now.
Tell me another kind of private property that you can take with you anywhere in the world without any third party permission, and without anyone noticing (you can only shove so many gold bars up your ass)
Private property that can be bought and sold in tiny amounts 24/7, and has a finite supply.
Finite, liquid, sovereign, private property is pretty useful
We're living through a once-in-a-lifetime financial event.
A global monetary reset.
People will tell you everything is fine, but if you look closely you can see the wheels flying off the fiat clown car in real time.
Most people will only accept this reality after the fact.
But the central planners clearly see the writing on the wall.
That's why they are exit scamming into gold.
Central Banks are stacking bullion hand over fist, converting fiat promises into hard money as quickly as they can.
To understand what's happening, you need to look at Japan.
They spent years suppressing their bond yields to try to spur growth.
And people took advantage of the artificially low rates by taking out loans in Japan, and sending tons of money overseas to search for yield.
This pumped global asset markets.
But now Japan is proving that Yield Curve Control is not the solution many people assume it is.
Because eventually it leads to real world consequences.
Namely, inflation.
A central bank can buy bonds in infinite quantities with the click of a mouse, but they can't print energy.
Manipulation eventually leads to your currency buying less and less energy and commodities.
And digital manipulation manifests in the real world.
After years of negative rates, Japan has been forced to allow bond yields to rise to prevent the Yen from fully imploding.
So now the 10 year yield is going parabolic in the country with the highest debt-to-GDP levels in the world.
As everyone awaits the Fed to restart quantitative easing again, or even kick off Yield Curve Control if things get really hairy... It's worth thinking a couple steps ahead.
If Japan is showing us the ultimate conclusion of yield curve control is unacceptable levels of inflation... Why should we think that Yield Curve Control in the US is a solution to anything?
Fiat currencies are slowly failing.
Yields cannot be suppressed forever.
And assets that have had valuations pumped up by artificially low interest rates may have a very difficult repricing in their future relative to hard assets.
Keep in mind that equities that have been fueled by cheap debt and stock buybacks would be repriced in a world where debt is expensive again.
Most people can't imagine that scenario.
Still waiting for yields to fall back towards zero.
After 4 decades of falling interest rates, it's all most people know at this point.
But gold being up 32% vs. Nasdaq year to date despite the AI boom is your sign that it's time to pay attention.
The Treasury and Fed can make you think you're getting rich by pumping up your equity portfolio with fake dollars...
But equities are already falling in hard asset terms.
When push comes to shove, commodities, energy, and hard money are the true measuring stick.
The Fed starting yield curve control (or whatever other name they come up with) is going to cause smart investors to look ahead.
They will look at Japan as the endgame.
And they will understand that a full reset is inevitable.
Gold has historically been the asset that has survived every reset.
And I believe Bitcoin will ultimately play a role too as people learn to value things that cannot be printed from thin air. Things with a real-world cost of production linked to energy.
But without (until?) a steady Central Bank bid setting a price floor for Bitcoin, I'm mentally prepared for carnage until the world figures out the value of a finite, neutral reserve asset.
Returns since January 2000:
Gold: +1,340%
S&P 500: +639%
Nasdaq: +552%
TLT (bonds): +141%
Dollar vs. Swiss Franc: -49%
25 years of American ingenuity, financialization, and passive equity investing - and gold still outperforms equity indexes by more than double.
Gold could retrace the majority of this latest move and long term investors would still be ahead.
But let's not forget that retail isn't driving this move.
Central Banks are.
Just for fun...
Can you imagine what a steady central bank bid would do to finite Bitcoin?
They are clearly prioritizing gold accumulation at this point.
But the Czech national bank just did a "test" transaction with a $1 million Bitcoin buy.
Is it so impossible to believe they would diversify into Bitcoin in the future for the same reason they're buying gold?
Sure Bitcoin behaves like a risk asset when it's driven by retail flows and sits around ~$2T in market cap...
But let's not forget that at its core it's another non-sovereign, neutral, bearer asset without counter-party risk just like gold. And it's finite.
Of course the head of the European Central Bank has already warned European banks against buying Bitcoin...
But the current front-runner for the next Fed chair is Kevin Hassett - a former Coinbase advisor.
Bitcoin has had the most bullish headlines imaginable in the past year and it just barely breached $120K.
And yes, high timeframe momentum has slowed.
That's part of the reason I'm finding it hard to be bullish in the short / medium term.
But that all changes in an instant if we get even a hint that the Fed may buy Bitcoin to offset the inevitable debt monetization they're going to have to do.
The math is simple. You don't need to be John Nash to see where this is headed.
You just need a little imagination to see that sometimes what seems impossible, becomes inevitable.
In 2013 could you imagine the head of BlackRock pushing Bitcoin on clients?
Now it's normal.
Don't underestimate where we could end up by 2030.
If there's one thing the chart below shows, it's that in the long run, sound money wins.
"There's no way we topped, 0 of 30 top indicators fired!"
The mistake is thinking those indicators are binary.
Water may not boil until 100 degrees, but it's still pretty damn hot at 95 degrees.
That's why I've been watching the StackWisely cycle index which combines six of the strongest long term indicators into a single score.
And unfortunately I've seen nothing but lower highs and lower lows since January.
Despite setting new high prices, each impulse is weaker than the last. And momentum has faded.
Now we're at the 48th percentile.
In 2021, we went all the way down to the 45th percentile before setting the final ATH at $69K...
So there's always a chance we bounce here.
But you should absolutely have a plan in place in case we don't.
Decide whether you're in hodl mode, stack mode, or capital preservation mode.
Everyone has a different situation, cash needs, time horizon, etc.
Just get clear on yours so you aren't making emotional decisions based on daily price movements.
Run your plan through bullish and bearish scenarios.
Make your decisions and then get off the charts.
Think in decades.
My personal belief is that Bitcoin plays a pivotal role in the future global financial system.
The AI and robotics revolution is JUST beginning.
It will play out in exponential fashion for the rest of our lives. Everything will become abundant EXCEPT Bitcoin.
Gold is telling us that the world is shifting to neutral reserve assets.
But if gold continues to rise in price, it will merely incentivize an army of robots to work around the clock to strip the earth bare of Gold.
So in my opinion it's only a matter of time until Bitcoin is recognized as a superior store of value. The one neutral reserve asset that cannot be debased.
Even if you're selling... You have to acknowledge that having the option of liquidating Bitcoin 24/7 with no slippage, from the comfort of your home is far superior to driving to some gold dealer, waiting in line, and getting rinsed by fees.
Bitcoin is the future of money.
But each of us has a life to live until Bitcoin ultimately reaches the point its going.
So think rationally. Stay objective. And make the plan that works best for your needs.
Stay solvent, stack Sats, enjoy life.
Bitcoin always comes out stronger in the end.
Just make sure you do too 🫡
@PeterSchiff Same as gold and all other forms of "money"/debt.
Gold's price is not derived from its industrial or utility value. Just a pure belief system.
JUST IN: Anthony Pompliano says gold is down -84% since January 2020 in Bitcoin terms
"Bitcoin is the hurdle rate. If you can't beat it, you gotta buy it."