The Best Assets of 2019

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2020 has been quite a year already.

Marijuana stocks had one of their best days in 12 months after bullish headlines from Organigram (OGI) and Aphria (APHA). Tensions with Iran suddenly ramped up, and in the aftermath, bitcoin has actually turned out to be a better store of value than gold.

That’s no big surprise, for those of us who’ve paid attention. For example, bitcoin was already the top asset of 2019.

Even S&P 500 stocks, with their nice 29% gain, were left in the dust last year. Bitcoin’s annual return was nearly three times higher (at 85%), and that’s even after closing the year well off its highs:

Other asset classes, like bonds, real estate, the U.S. dollar, and overseas stocks, fell even further short.

I definitely expect this to continue through 2020. Other asset classes come with a lot of baggage that the cryptocurrency market manages to avoid. That’s because it was specifically created to be a better alternative – with key advantages built right into the code!

Why Digital Currencies Succeed Where Others Fail

Whether we’re talking about bitcoin or the newer alternatives called altcoins, the main thing cryptocurrencies have going for them is that they’re a great piece of software.

When you first hear about them, cryptocurrencies might sound far-fetched… a crazy idea ginned up by some basement-dwelling software developers in San Francisco.

But the technology behind them, known as the blockchain, is not all that different from any other breakthrough technology… from Airbnb to TurboTax to Microsoft Excel.

They changed the game because they provided a better way to gather, sort, and analyze information.

That’s just what the blockchain does for transactions.

When you transact on the blockchain, you can buy and sell more efficiently… because you can do it directly. The transaction goes straight from one party to the other, with no middleman. All of this takes place within the blockchain, and all the computers on the network get a copy. This makes it practically impossible for anyone to fake, hack, or exploit these transactions.

(No wonder cryptocurrencies are growing more popular by the day. I expect them to really take off once the next major profit catalyst hits in just a few weeks.)

Meanwhile, with other assets, you just can’t escape other people… and their human failings.

Take stocks, for example. These companies are the growth engines of our economy – but stock investors must diversify and hedge against individual risk. One misstep by a CEO, one bad call on next quarter’s earnings, and that stock could be in danger of a major drop.

Traditionally, people would buy bonds as the antidote to this. But, if anything, we’ve learned that bonds can be even worse!

That’s because the central banks that issue them like to play politics. In order to prop up the economy – and allow governments to spend freely – central banks all over the world are cutting interest rates.

Here in the United States, the government is still giving something back to savers: 1.8% on the 10-year Treasury. And the Federal Reserve’s current benchmark rate is 1.5%-1.75%.

But around the world, there is $17 trillion in negative-yielding debt… roughly a quarter of the entire market. And that number is only climbing.

Thirty percent of all investment-grade securities now bear sub-zero yields. All of those who hold these securities to maturity are guaranteed a loss on their investment. And people can’t get enough of them.

At least with bonds, there’s not as much headline risk as you get with some other assets.

Every time there’s unrest overseas, a drought somewhere, or a new producer comes online, the prices of commodities swing around wildly. Just look at oil prices and the roller coaster they’ve been on lately!

As for real estate… well, we all know what happens when Wall Street greed gets out of hand. 2008 was just one example of the wild speculation that can lead to a major crisis.

Even when the real estate market is doing just fine (as it is now), it can be hard for ordinary people to make money. The whole industry is stacked with blood-sucking middle-men.

By the time homebuyers pay the real-estate broker… the title insurance company… the payment processor (not to mention the tax man)… there’s not a lot left over. I just did this and almost gave up on the whole thing because it was so frustrating – and expensive.

In the future, blockchain technology will help us “trim the fat” from this whole process.

Not only will people make payments on the blockchain – they’ll transfer records, too. Everything from house titles to medical records will be handled more efficiently… and thus, more cheaply!

And corrupt central banks won’t be able to interfere with this. Because the blockchain is peer-to-peer, your transaction won’t require a bank in any form. And the cryptocurrencies’ values are “mined” directly from an algorithm… not some government printing money.

Now is the moment to invest in cryptocurrencies. All you need is the right system for choosing those investments – which I’ll tell you a little bit more about tomorrow.

P.S. Speaking of cryptocurrency mining…

The creators of digital currencies wanted to ensure that the supply of their “coins” never gets out of hand.

So, they built some failsafes in the program.

Roughly every four years, these failsafes kick in – and cryptocurrency mining takes a dip.

Meanwhile demand for cryptocurrencies are still skyrocketing.

So what happens when demand is high while supply dips low? A massive reward for investors.

That’s the finding I shared in my 2020 Crypto Millionaire Summit, in a nutshell. Click here to watch the replay if you didn’t catch the live event.

Matt McCall’s MoneyLine Podcast

Click here to listen to Matt McCall’s MoneyLine podcast! This week, Matt reports live from CES – the largest consumer electronics show in the world. He gives you a recap of his favorite trends, everything from driverless cars to flying cars to 5G, artificial intelligence, and more.

You can subscribe to this podcast on iTunes, Stitcher, Spotify, or wherever you listen to podcasts.

Learn where Matt McCall sees
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