How Can a Volatile Asset Be a Store of Value?

How could this be a safe haven?                                                                                                                                                                                                                                                                                                                                                                                                                 October 07, 2024 | [Listen Online]( | [Read Online]( [Teeka Tiwari]( mailto:?subject=Post%20from%20The%20Digital%20Asset%20Daily&body=How%20Can%20a%20Volatile%20Asset%20Be%20a%20Store%20of%20Value%3F%3A%20How%20could%20this%20be%20a%20safe%20haven%3F%0A%0Ahttps%3A%2F%2Ftiwariresearchgroup.com%2Fp%2Fhow-can-a-volatile-asset-be-a-store-of-value How Can a Volatile Asset Be a Store of Value? When there’s geopolitical or economic uncertainty, you can bet governments will use it as a reason to print more money. Right now, we’re on the cusp of what could be a wider war in the Middle East. And back home, a major strike by U.S. dockworkers who oppose automation of their jobs is on hold. The uncertainty has rattled the markets… After finishing a record run higher through the historically volatile month of September… The S&P 500 is down 1% since the start of October. Whether you blame the tensions between Israel and Iran and its proxies… Or the labor strife between dockworkers and managers of the nation’s seaports… One thing is for sure – the government will come to the rescue. Meaning more money printing is on the way. And when the feds pump more liquidity into the economy, it increases inflation. That’s why I always take stock of where we are in the current market cycle and ask myself, “Is the money supply going to grow faster or slower than the normal rate?” I don’t think you need MIT-level intelligence to know that it’ll grow faster. And when you throw in the possibility of wider war in the Middle East and possible economic slowdown caused by supply chain disruptions, it’ll accelerate even more. Friends, I have to tell you an ugly truth: When the government expands its monetary policy, it only enriches the most well-off in society who already have assets. As inflation increases, so does the value of the assets they own. For those who are not so well-off – well, the only thing they’ll see go up are prices. If you want to climb the ladder from not-so-well-off to well-off, the first step is to own what I believe is the lowest-risk, highest-reward asset on the market: Bitcoin. I’m sure that comes as no surprise to you. I’ve been pounding the table on bitcoin ownership since 2016. That’s because if you want to protect your wealth, the best place to store it is in some bitcoin. How Can a Volatile Asset be a Safe Haven? Friends, I know it sounds insane. On one hand, I tell you bitcoin is an incredibly volatile asset that can drop 50% on a dime… While on the other, I’m telling you it’s the best way to protect your wealth. To the uninitiated in bitcoin, it sounds like I’m talking out of both sides of my mouth. But nothing could be further from the truth. Believe me when I tell you this: Bitcoin is both. Bitcoin is wildly volatile. It can experience significant drops – even when there’s incredibly bullish news. If you’ve owned this asset long enough, you already know this. However, mainstream analysts can’t see the forest for the trees. They only see the huge crashes and explosive rallies. What they fail to see is the long-term upward price trajectory. When you pull back the lens, you see this is an asset that continues to ascend. Since I first recommended bitcoin in April 2016, it's up 16,038%. That time frame includes five gut-wrenching drops of 50% or more. By comparison, the S&P 500 is up 174%. That’s 13% average returns per year since 2016. At that rate, you’d need to hold the entire index 42 years to match bitcoin’s return. And consider this… Over any four-year rolling period, you couldn’t lose money in bitcoin. The worst four-year period we could find was between December 2017 and December 2021 – when BTC returned 150%. So, sure, bitcoin is volatile. At the same time, it’s one of the best assets you can own to build not only greater wealth than you can in the stock market – but faster, too. By the end of the decade, I believe bitcoins aggregate value will match that of the gold market. Using gold's current price that would put bitcoin at about $700,000 per bitcoin. So ponder this…. Between December 2017 and December 2021, bitcoin returned 150%. If you can make an average compound annual growth rate of 26% over the next four years, would you be concerned about inflation running at 10% per year? No, because your wealth is outpacing inflation. You won’t be worried about rising homeowners insurance, skyrocketing car insurance, or increasing medical costs. As inflation erodes the purchasing power of the dollar, people will have no choice but to turn to “sound” money like bitcoin. Sound money goes up in value over time. Now, it doesn’t go up in a straight line… But it will be worth more in the future than it was in the past. Look, I understand. We can’t get away from fiat currency. We have to use dollars to transact in this economy. But if you want to protect your wealth from monetary debasement, bitcoin is the best vehicle I can think of to outpace the inflation that excess money printing causes. But What About Gold? If you’re a hardcore gold fan – and I know many of you are – this will sound blasphemous. But I believe bitcoin will replace gold as the word’s safe haven asset. Here me out… Like gold, bitcoin is a “hard” currency. I’m not talking about its physical nature. I’m talking about its limited supply. There’ll only ever be 21 million bitcoins. That’s hardcoded into the algorithm that governs the bitcoin network. Unlike U.S. dollars, Japanese yen, or the British pound, no one can crank up a printer and issue more bitcoin than the code allows. Plus, bitcoin is easier to transport than gold or cash. Imagine trying to carry $10 million worth of gold bars on your person. That’s over 257 pounds. If you try to smuggle one gold bar on an airplane, you’ll likely get put on a no-fly list. On the other hand, you can store $100 million worth of BTC on a flash drive. In the past, gold was the best way to protect against monetary debasement. But we’re moving into a digital future. And bitcoin is the premier digital currency. Millennials and Gen Z are the first generations to be born into a completely online world. And they overwhelmingly prefer digital assets to gold. A survey by DeVere Group, an independent financial advisory firm, found that more than two-thirds of Millennials prefer bitcoin over gold as a safe-haven asset. You don’t need a crystal ball to know where they’ll store their wealth. If that’s not enough to convince you, just look at the chart below. As you can see, “volatile” bitcoin has completely crushed “steady” gold since the 2020 pandemic. Friends, I need you to put everything I’ve told you in perspective. We’re moving into a completely digital realm. Whether it’s paying for groceries with your smartphone… Via chips implanted in your hands… Or biometric technology like fingerprints or eye retina scans… Paper money is going the way of the dodo. In this digital environment – where everything of value is in digital form – then you have to ask yourself, “What's the perfect digital money?” And the answer is bitcoin. Let the Game Come to You! P.S. As capital flows into bitcoin, it starts percolating through the entire ecosystem and sending altcoins radically higher. And there’s a specific niche of the crypto market I believe benefit from Wall Street’s massive financialization of bitcoin and other digital assets. If bitcoin goes up 2x this cycle, we can see these tokens go up 10-50x. I recently held a special briefing about these tokens and a once-in-a-generation phenomenon that will completely reshape the crypto landscape. [You can stream the play right here.]( Share The Digital Asset Daily You currently have 0 referrals. [Click to Share]( Or copy and paste this link to others: [ [fb]( [tw]( [ig]( [yt]( [in]( Update your email preferences or unsubscribe [here]( © 2024 Tiwari Research Group 1607 Ponce De Leon Ave San Juan, Puerto Rico 00909, Puerto Rico [Terms of Service](