Talk about a white-knuckle ride… Look at this chart of bitcoin (BTC). Our favorite cryptocurrency began the year at $28,996… It climbed as high as $64,870… Then it plunged back to $28,019… before taking off again. This volatility can make your stomach churn… especially if you’re new to crypto. It may even cause you to panic sell. And that could end up being the worst financial mistake of your life. Because as I (Chris Lowe) will show you in today’s dispatch, bitcoin’s unique features could help it hit $680,000. That’s a 1,600% gain from today’s level… enough to turn a $1,000 investment into $17,000. The financial press loves to focus on bitcoin’s price swings… Moves like these grab attention. The drama makes for good TV news. But as colleague and world-renowned crypto investing expert Teeka Tiwari has been showing his readers, obsessing over every price swing is a waste time. This is par for the course when a breakthrough new technology emerges. Amazon.com (AMZN) plunged as much as 94% on its way to a $1 trillion valuation. And Apple (AAPL) plunged as much as 82% on its way to a $1 trillion valuation. That’s why Teeka calls volatility the “price of admission” for spectacular gains as an investor. So instead of fretting over short-term price moves, he recommends you focus on the only stat that matters for bitcoin right now: the pace of adoption. Here he is with more on that… The odds of guessing what the crypto market will do over a short timeframe are too small to bet meaningful money on. That’s why I stay focused on long-term adoption trends. I’m not saying I don’t ever look at crypto prices. That’s impossible. But I don’t let price be my guiding star when it comes to my research. When I’m figuring out the future of any investment, I look at two things: Is it getting better? Are more people using it? This is particularly important for investments in new technologies. And Teeka has viewed cryptos as a tech play ever since he first recommended bitcoin in April 2016. | Recommended Link | | JUST IN: Jeff's next #1 "glitch" stock is NOW LIVE The other night, Jeff issued the details of his #1 "GLITCH" stock – for free. He agreed to keep the replay available – for now. So hurry. Grab a pen and a piece of paper… And watch Jeff's announcement before it's too late. | | | -- | The pace of bitcoin adoption been blistering so far… In January, bitcoin hit 100 million users. That’s faster than it took for the internet and smartphones to hit that level of adoption. This has helped make the cryptocurrency the fastest asset in history to reach a $1 trillion market value. And as Teeka explained here, he believes we’ll see 5 billion bitcoin users as adoption expands. But what makes bitcoin something people want to use in the first place? Some people claim bitcoin has no value at all. Others see it as the most transformative new technology since the internet. When it you boil it down, why does bitcoin have value? Bitcoin is scarce… There can never be more than 21 million bitcoins. That’s baked into the crypto’s code. And mining each new coin is costly. That’s thanks to the complex – and energy-intensive – math puzzles bitcoin miners have to solve to get their rewards. But scarcity alone doesn’t give something value. People also have to want to own it. People want to own bitcoin because it solves an important problem: It allows us to securely store wealth without relying on a third party. You can self-custody bitcoin… That’s not true of most financial assets. You may legally own your stocks, your bonds, and your cash accounts. But you rely on a broker or a bank to hold them for you. After 50 years of govt. secrecy…Teeka Tiwari exposes the truth In the case of cash accounts, you need a commercial bank and a central bank to manage transactions. Bitcoin is different. You can self-custody your coins in a digital wallet on your smartphone. All you need is a private cryptographic key to access and spend your funds. Banks and other middlemen don’t come into the equation. The only two other assets like this are gold and physical cash… Gold is metallic cash that’s been around for thousands of years. It’s decentralized, like bitcoin. You can also self-custody it. You don’t need a third party to manage transactions. You can swap a gold coin or bar for something worth the same amount. No bank or institution needs to be involved. In their electronic form, fiat currencies such as the dollar are not decentralized. Central banks and governments control their supplies. You also need banks to facilitate transactions. But you can self-custody your fiat currency in paper form – say, under the mattress. And you can use this physical cash to buy or sell something without involving any third party. So how does bitcoin stack up against gold and cash? Analyst and investor Lyn Alden has some of the best insights into crypto outside of Legacy Research. Here’s her take… Bitcoin is digitally native, unlike gold and cash. Gold and cash can only be transacted with offline, unless [you] are willing to rely on a trusted/centralized third party (at which point they lose the property of being self-custodied and censorship-resistant). Bitcoin can do that online and across borders. It’s a digitally-native money-like bearer asset. Bitcoin isn’t “magic internet money,” as its detractors like to call it. It’s the world’s first electronic bearer asset. Bearer assets mean he who bears them owns them. They have value because they’re hard to confiscate. Look at what happened in Greece… In 2015, the country was reeling from an economic crisis. The government decreed savers couldn’t withdraw more than €60 (about $66 at the time) a day from their banks. Argentines suffered a worse fate 15 years earlier… I experienced it firsthand. I was living and working there at the time. To stop a bank run, the government there froze Argentine-peso bank accounts as the currency cratered. And it banned withdrawals from U.S.-dollar-denominated accounts. Governments can have other, more sinister reasons for freezing accounts, too. Just ask Russian opposition leader Alexei Navalny. He uses bitcoin donations to try to get around Vladimir Putin’s government’s attempts to block his funding. | Recommended Link | | Stop Reading. Do This NOW. If you want a legitimate shot at financial freedom in 2021… This should be priority #1 for you: Teeka Tiwari’s “FREEDOM 2021.” Big T revealed his first-ever pre-IPO tech deal recommendation… Your chance to own a stake in one of the most promising startups in Silicon Valley. And if you act now, you can get in for just 50¢ a share. This could potentially be the most profitable decision you make all year. In short: Before you do anything else today… | | | -- | Not just foreigners are at risk… Between 2000 and 2016, the Department of Homeland Security seized more than $2 billion in cash from folks passing through U.S. airports. In 70% of those cases, officers made no arrests. Thanks to a legal tool called asset forfeiture, law enforcement officers can permanently take your property – including physical cash – if they suspect it’s connected to a crime. That makes it hard to get your cash back… even if you did nothing wrong. Law enforcement doesn’t have to prove you got it illicitly. You have to prove you earned it legally. By contrast, you can go through an airport carrying millions of dollars’ worth of bitcoin in your head. All you need to do is memorize the “seed phrase” (a string of random words) that can access your bitcoin when you arrive at your destination. So the next time someone claims bitcoin is worthless… tune them out. They don’t know what they’re talking about. Bitcoin is the world’s first electronic bearer asset. Thanks to its scarcity, it’s inflation-proof, like gold. But unlike gold, you can transact with it online 24/7, 365 days a year. How high could this send the price of bitcoin? Consider bitcoin in relation to gold. The market value of all mined bitcoin is about $700 billion. That may sound like a lot. But it’s still 17 times smaller than the value of all the world’s mined gold, which is $12 trillion. So if the bitcoin market becomes as valuable as the gold market, it would mean a bitcoin price of $680,000. Even if bitcoin becomes only half as valuable as gold, it would mean a bitcoin price of $340,000. With bitcoin currently trading for $39,650… both targets mean it’s a bargain at today’s price. Don’t know where to start? You can find out how to buy your first bitcoin in our free special report here. In the mailbag: “Prepare to be deplatformed”… In his free daily e-letter, Legacy cofounder Bill Bonner reflected on the return of all U.S. troops from Afghanistan… after 20 years of warfare. From his chateau in France, he took aim at what President Eisenhower called the military-industrial complex… The Boy Scout can believe that every penny of the Pentagon budget goes to keeping America safe. The old soldier begins to suspect that little of it does. He knows that expensive military adventures overseas probably make us less safe. And he has seen how deep the pockets of the “defense industry” can be. “Maybe 10 cents on the dollar,” he reckons, “are actually well spent.” In today’s mailbag, some of Bill’s readers – including one long-serving “old soldier” – weigh in… Thank you for your fearlessness. Taking on the inhumane, psychotic madness of war for profits will bring you special discrediting. Prepare to be deplatformed. This is the elephant in the room, the biggest game in town. – Timothy L. What bureaucrat arms supplier cares what we got for our 20 years in Afghanistan? The big powers come and go. Knowing we’d be unlikely to make a difference there, we went anyways. We spent a wad, then took our stuff and went home. Cynical? Yes, but true. – Miguel C. The current political battle in the military is between warriors and administrators. The warriors know how to command troops and win wars. The administrators are following the PC line and setting the warriors up for failure. – Bob P. I am a rare bird, in that I served in both Vietnam and Afghanistan. In both cases, America’s arrogance led to a pathetic defeat. And in both cases, the only winner was the military-industrial complex. As a nation, we have perverted patriotism into a desire to invade or attack dozens of countries around the world. The winners are the pristine boys in pointy shoes inside the Beltway. – William Z. Do you agree with William that “America’s arrogance led to a pathetic defeat” in Vietnam and Afghanistan? Is our patriotism “perverted,” as he claims? Have your say by writing to feedback@legacyresearch.com. Regards, Chris Lowe
August 2, 2021
Barcelona, Spain Like what you’re reading? Send your thoughts to feedback@legacyresearch.com. IN CASE YOU MISSED IT… Want to learn how to make your money work for you while traveling? Why is traveling so expensive lately? Supply chain issues, labor shortages, and increasing demand are all factors. But the good news is if you follow tech expert and angel investor Jeff Brown you could potentially afford to travel and have your money work for you. He believes that we are on the cusp of something we haven’t seen in 20 years. Fortunes will be made and lost over the next few months. And he should know. Jeff has named the No. 1 S&P tech stock winners in 2016, 2018, 2019, and 2020 based on return. Find out his latest prediction here. 
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