"The “good times” were supposed to be rolling by now, but instead the wheels are starting to come off, and the economic outlook for the rest of the year is not good. Recently, this author warned readers that things were about to get worse, and it only took a day for that to happen.
"As you’ll see below, major factory shutdowns were recently announced, and that is going to make shortages even worse. Fear of COVID is restricting production all over the globe, and national governments and central banks have been absolutely flooding their systems with fresh cash. As a result, we now have way too much money chasing way too few goods and services, and anyone that has taken ECON 101 will tell you that will inevitably result in higher prices and shortages."
This was supposed to be a time when vehicle sales were soaring to all-time highs, but thanks to a lack of chips, the number of new Ford vehicles sold last month was down by a whopping 33 percent compared to a year ago.
“Dealers only have about 942,000 vehicles in inventory for retail sale, compared with roughly 3 million before the pandemic two years ago, according to Thomas King, president of the data and analytics division at J.D. Power.
“Yesterday, outside the ports of Los Angeles and Long Beach, a record 44 container ships were anchored, waiting. There are hundreds of ships hung up somewhere globally, trying to get into a port, or being rerouted to different ports; this takes time.
“Containers are stuck in ports because railroads are backlogged, trucking companies are troubled by driver shortages, containers are hung up in railyards and clog them up to where some railroads have stopped routing trains to those particular railyards until the backlog is cleared, further contributing to the pileup of containers at ports.
“Each extra day that a loaded container doesn’t get to its destination is a day that it cannot be unloaded and returned to the flow of containers, and cannot be sent to a manufacturer that has goods ready to ship but cannot ship them because they cannot get empty containers.”
Stephen Roach, former chief economist at Morgan Stanley, is on record last June saying the U.S. dollar could crash 35%. He warned: “Already stressed by the impact of the COVID-19 pandemic, U.S. living standards are about to be squeezed as never before. A crash in the dollar could well be in the offing. It’s going to fall very, very sharply”. For decades we’ve heard rumors of a dollar crash…But until now, no one alive has seen anything quite like this. A new crash is now underway and it’s happening fast.
Take a look at this chart of the U.S. dollar against other currencies.
Ever since the Fed announced unlimited money printing, the dollar has been in free fall, which is why I believe leaving all your money in your bank account is the worst possible thing you can do with your money.
There is a revolution going on in our financial system. As you can see in the letter, it says…
For the first time ever…Banks are officially able to hold cryptocurrencies as an asset, just like they hold a certificate of deposit. In other words, while traditional bank accounts could be all but destroyed by inflation and lose purchasing power, banks will be able to offer crypto accounts, which I’m confident will help protect against inflation and could make you wealthy.
The clueless media has just confused Americans. For example…In late 2015, the Financial Times called Bitcoin a “pyramid scheme.” Around the same time, the Washington Post declared “Bitcoin isn’t the future of money”. An article with the headline read “Ten reasons why you should not care about Bitcoin.” Well, I knew the media was just clueless about digital currencies.
We all know from economics 101 that what drives prices is supply and demand. If you have declining supply and increasing demand…the price should go higher. That’s a law of economics. And that’s the situation I believe we have today with Bitcoin.
The problem with the dollar is — there are too many of them. Like I showed you, we’re witnessing a historic experiment with our currency in the Fed printing trillions like never before. As expert on the Federal Reserve Peter Conti-Brown says, “America has never seen anything like it.”
Bitcoin has its own problem of course… there aren’t enough to go around. As a digital currency, the supply of Bitcoin is dictated by a computer code. Each year, by design, fewer and fewer bitcoins are released to the public. That should push the price higher.
Think about that. While our central bank is printing trillions of dollars, increasing the supply of dollars like never before, the supply of newly minted bitcoins is GUARANTEED to decline.
This means the vast majority of people who hold their savings in cash are essentially losing money, while a small fraction holding their wealth in Bitcoin could be making serious gains.
That’s why Pantera Capital wrote a note to its clients saying…
You see, since the supply of Bitcoin is pre-programmed, we know what the supply will be in the future. So we can actually project future price ranges. According to one model known as Stock-to-Flow…Bitcoin could hit $100,000 sometime in the coming months and $1 million per token within the next four years.
Of course, this is just a projection… not a guarantee. But notice how the model has tracked the actual range of prices for Bitcoin pretty closely. That’s why Forbes wrote:
In other words, according to this model, we’re talking about the potential to almost double your money by next year. That may be a conservative estimate. Venture capitalist and billionaire Tim Draper believes the price of Bitcoin will hit $250,000 by the end of 2022.
Former Goldman Sachs fund manager Raoul Pal is even more confident. He tweeted last August:
And he said the devaluation of the world’s currencies will cause the price of Bitcoin to increase 50 to 100x over the next five years.
So I just explained to you the supply side of the equation. There’s also the demand side, and that’s picking up like never seen before.
The author of this article, Teeka Tawari, a world renowned top expert in cryptocurrencies, said “I know this because I’ve met with all the big players in the space…including Vitalik Buterin, the creator of Ethereum, one of the most popular cryptocurrencies. I met with one of the richest men in crypto in Toronto. I also met privately with an executor in Asia's trillion dollar crypto exchange…and with a Silicon Valley legend, the Venture Capitalist behind both PayPal and SpaceX. And they all see mass adoption coming.”
Today the entire crypto market is only worth about $370 billion. Right now, 35–50 million people own crypto. That’s 0.6% of the world’s population. So we’re still in the early stages of adoption. We’ll see hundreds of millions (and probably billions) of people flood into this space in the coming months and years.
Back in 2016, some people reported getting their bank accounts closed for buying crypto. Today, every major institution that matters has already embraced bitcoin, even the ones that thought Bitcoin was just a scam.
Take JPMorgan. A couple years ago, the CEO Jamie Dimon called bitcoin “a fraud.” Now, his bank has accepted two Bitcoin exchanges, Coinbase and Gemini, as clients. Their research team has advised their clients to add cryptocurrency to their portfolio. And they even launched their own digital currency called the JPM Coin.
The truth is…after many years of resisting, institutions are finally accepting crypto as a new asset class…worthy of being held alongside stocks and bonds. Big institutions like hedge funds, pensions and endowments are already pouring up to $400 million into cryptos…every week. That’s why Forbes wrote…”Institutional adoption of bitcoin is here” – Forbes.
This is going on across the entire financial industry. For example, look at Square, a financial services and mobile payments company based in San Francisco. They allow individuals and merchants to accept offline debit and credit card payments on their smart devices. Maybe you’ve seen their tiny square-shaped phone plug-in.
Today, more than 64 million businesses around the world rely on Square’s cashless system. And they’re embracing Bitcoin. In its 2020 Q2 earnings report, Square’s Cash App reported $875 million in bitcoin revenue — a 600% increase from the previous year.
PayPal recently rolled out crypto trading to its 325 million users. Robinhood Crypto offers commission-free trades on seven cryptos to its 10 million users. Even Mastercard and Visa recently announced projects and collaborations involving crypto. And look at Fidelity, the largest provider of 401(k) retirement plan services. They just launched their first Bitcoin fund. They released a statement saying:
Think about that…Fidelity has over $7 trillion in assets under management. Imagine what that will do to Bitcoin if some of that money starts moving into crypto? It doesn’t get more mainstream than that.
You see, the bylaws of many big investment funds don’t allow them to park money outside federally chartered banks. For years, this has been a de facto ban on cryptocurrency. This OCC rule changes all that.
As Fortune said: “The upshot is that big banks now have a green light to open crypto operations.” That means we could see billions and billions of dollars flowing into the crypto space. As Yahoo Finance says: “This is a huge step for the mass adoption of cryptocurrencies as it potentially opens the asset class up to millions of people in North America.”
Banking expert Seamus Donoghue said… This move from the OCC “is another huge step towards mainstream institutionalization and retail access to cryptocurrencies.”
What do you think is going to happen when all this new money starts to flow into Bitcoin and these smaller cryptocurrencies? You don’t have to be a genius to figure this out.
The U.S. banking system alone holds north of $20 trillion in assets. If bank customers allocate just 1% of their accounts to bitcoin… bitcoin’s market cap would double. That’s why cryptocurrency research firm Messari recently wrote: “It won’t take much of an institutional allocation until $50,000 bitcoin is back.”
Here’s another way of looking at it…if global investors reallocated just 5% of their financial assets to Bitcoin, that would be $14.7 trillion in increased demand. That alone is enough to push Bitcoin almost 15 times higher.
Now to be clear, I’m not saying that’s guaranteed to happen. And if it does, it won’t be overnight. There’s risk and volatility in this market. But I think you can see the potential impact of this development.
With institutional investors already pouring up to $400 million into crypto every week, there is really no better time to get started. I think it’s truly a once-in-a-lifetime opportunity. So how can you get started? Well, I actually recommend you take 2 steps right now…
Step #1: Buy Bitcoin and Ethereum today.
As you can see, according to these projections, you could make massive gains from Bitcoin in the coming months.
Step #2: Buy the top small crypto picks for 2021
I believe you could make a ton of money with Bitcoin. But the research indicates you could make even more with other cryptos that are trading for less than a dollar.
Just look at what happened in 2020 alone. Yes, Bitcoin was up big…but a tiny crypto called Cardano had gone up as much as 6,118% in a year since March of 2020.
These explosive gains are only possible because many of these smaller cryptos trade for pennies on the dollar. Cardano for example is trading at just over two and a half dollars today, AFTER that major rally pictured above. That means it just needs to go up another two and a half dollars and you double your money.
Or look at another small crypto called Chainlink. Last Spring it was up as much as an incredible 2,381% since March of 2020.
Normally you’d have to wait years, sometimes decades, to see those types of gains. And yet, you could have made more than 20 times your money in a few months with this tiny crypto.
Of course, we know all of that with the benefit of hindsight. Past performance doesn’t guarantee future results. The low price of many cryptos means they can move quickly—both up and down. But when a play does hit, it can hit big.
The secret here is many of these cryptos are trading for pocket change. So even if you’re starting with a few hundred dollars, the profits on a successful crypto can be astounding.
"Now, all investments carry risk; and past performance doesn't guarantee future success. We all know the crypto market can be extremely volatile. But as I showed you here, when you pick the right cryptos, it could really transform your portfolio faster than anything else.