The Digital Gold of the Future

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Lately I’ve been telling anyone who will listen about the enormous gains that are possible by owning cryptocurrencies.

But are cryptos also a better asset for your portfolio than, say, gold?

That will sound like a wild claim to some people. And a few years ago, it might have been. But now… well, take a look at this chart:

That first, big spike in the price of bitcoin (the blue line) occurred after the U.S. air strike in Baghdad that took out Iranian general Qasem Soleimani. It’s the ultimate example of a situation that sends investors scrambling to hedge their portfolios.

But even though S&P 500 futures plunged overnight – and stocks fell the next day – gold did… practically nothing. Even now, after Iran retaliated by attacking a U.S.-Iraqi joint airbase, the SPDR Gold Shares (GLD) are up only about 1.5%.

Meanwhile, the price of bitcoin – the original and best-known cryptocurrency – is up 25.5%!

The fact is that cryptocurrencies’ best years are still ahead… while gold over the long-term rarely has big upside potential. It’s already up 68% in the current bull market. That doesn’t give it much runway if stocks actually do turn south.

There are a few other factors that might explain this huge performance gap. They’re the very same reasons why any investor would be crazy not to consider even a small stake in cryptocurrencies right now.

Like gold, silver, and commodities, bitcoin serves as a store of value during turbulent conditions. In fact, it’s an even BETTER store of value in the sense that its total supply is capped at 21 million bitcoins. (And 80% of those bitcoins have already been “mined.”) Because of the way it was programmed, we know this with absolute certainty – even if demand begins to soar into the stratosphere, which is what I’m predicting.

But unlike those other assets, bitcoin can also serve as a means of value exchange, more like the U.S. dollar. Only there’s no middleman, like a bank. Bitcoin transactions are done directly, peer-to-peer, within the blockchain.

If you’re unfamiliar with this stuff, then think of the blockchain as a digital ledger. This ledger on which the cryptocurrency exchange runs is maintained with an open-source protocol – meaning anyone can read and review it. Anyone can also run the code that defines the rules and parameters of its network and its operation on their own computer. In other words, the decision making for its future is spread out more evenly among folks who own it and have skin in the game.

Most importantly, because this is all run by a computer program, there’s no human influence. Bitcoin is not a corporation or a government that bends to doing what’s easy or convenient in a given moment. Bitcoin has no president or CEO, no board of directors who can intervene and rain down cash bailouts on the over-spenders.

Eventually, this becomes a problem for fiat currencies like the dollar (or the yen, or the euro), because it leads to inflation.

When inflation gets out of control, it can massively impair the future buying power of the money you save today.

To get an idea of how a free-spending, constantly-inflating government can devalue its currency, have a look at the chart below. It shows how the U.S. dollar has lost over 90% of its value since 1870.

Other nations’ citizens have suffered equally large declines in purchasing power in much shorter time frames.

In Venezuela, for instance, the reckless, corrupt, free-spending government saw inflation of approximately 10,000,000% — since 2018, according to the International Monetary Fund. This devastated the nation’s savers and impoverished the country.

History is full of these examples… of hard working, conservative folks losing their wealth at the hands of free-spending government officials who don’t think twice about debasing their currencies in order to get re-elected.

This is why the allure of today’s digital money – cryptocurrencies that only exist in fixed amounts and cannot be debased – will grow and grow over the coming decade.

Over time, conventional currencies become less valuable. But the limited supply of cryptocurrencies like bitcoin should repel the effects of conventional currency inflation… making cryptos great vehicles for storing wealth. This will give them a big advantage over government-backed paper currencies – and even over the traditional asset classes like gold.

As more and more folks catch on to this, the performance gap I showed you earlier is only going to widen.

P.S. The thing that really makes cryptos exciting for me is how quickly their prices can take off. And, like the supply cap of bitcoins, the next big catalyst is baked right into the code.

It’s called “the halvening,” or “the halving,” and it was the subject of last week’s webinar event, my 2020 Crypto Millionaire Summit.

The next halvening is just weeks from now. So my team and I dedicated the past few months to crafting a 10-factor system for picking cryptocurrency investments.

Given the track record of explosive gains in cryptocurrencies, I’m here to tell you that people who invest modest stakes now could make millions of dollars.

Click here to catch the replay of my 2020 Crypto Millionaire Summit while it’s still available.

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