Former hedge fund manager and Wall Street executive Teeka Tiwari recently came across an opportunity that he believes will create a whole new class of cryptocurrency millionaires.
It involves a little-known currency law working its way through Congress as we speak. It’s set to go into effect by the end of this year.
Today, Teeka tells me why he predicts the price of bitcoin… as well as a handful of other lesser-known cryptocurrencies… will soar because of the law.
Nick: T, you’ve talked about a new law working its way through Congress. The bill would make every bitcoin transaction under $600 exempt from capital gains taxes.
I know you’re really excited about it. How will it affect our readers?
Teeka: OK, this new law could be a turning point for bitcoin in America.
Because it removes the No. 1 obstacle preventing people from using bitcoin on a daily basis here in the U.S.
You see, right now, even if you buy a cup of coffee with bitcoin, technically you have to pay capital gains tax on the purchase.
Nick: Why is that?
Teeka: Because of an IRS mandate. Back in 2014, when the IRS was trying to figure out what bitcoin was, they classified it as “property.”
That means if you buy bitcoin, and it goes up in price and you use that bitcoin to buy a cup of coffee, technically you have to pay a 28% tax.
So under current law, you’d have to keep track of every single purchase you made along with the price you paid for your bitcoin…
Nick: That’s absurd.
Teeka: Totally absurd.
Obviously, in a case like this, bitcoin is being used as a currency—not property. Everyone can see that… except the IRS. They say it’s property, so it’s taxed at 28%.
Now, this is an unfair burden on bitcoin. Every other currency gets an exemption.
If a European comes to America and pays for a cup of coffee in euros, no problem. No capital gains tax. But if he pays in bitcoin? Sorry, he has to pay an extra tax.
Nick: But you’re saying this could all change by the end of the year?
Teeka: Lawmakers are pushing through a law that will eliminate this. It creates an exemption for bitcoin payments under $600, making them tax-free.
Nick: The same exemption other currencies get?
Teeka: The same exemption.
No more “coffee tax.” Bitcoin is treated just like every other currency. It’s put on an equal playing field with the dollar, the euro, the pound, etc.
Nick, this sets the regulatory stage for bitcoin to be used as a daily currency.
Nick: But Teeka, is bitcoin actually going to be used daily? I mean, do they even accept bitcoin at Starbucks?
Teeka: They do. They started accepting it late last year.
Subway, Microsoft, Expedia.com, Dell…
Over 100,000 stores across the globe now accept bitcoin as payment.
And hundreds of thousands more have signed up in just the past year.
Now I’m not saying that, overnight, everyone is going to be using bitcoin instead of U.S. dollars.
But what I am saying is… this change in the law… it could help the day-to-day use of bitcoin increase significantly…
I wouldn’t be surprised if usage doubled in the next 12 months. And that would obviously increase demand for, and ownership of, bitcoin.
Nick: What would this do to bitcoin’s price?
Teeka: It would send it soaring. We know this because it’s happened before.
In July, Japan made all digital currencies, including bitcoin, exempt from its 8% consumption tax. Now, before the announcement, very few Japanese retailers accepted bitcoin as payment.
But within days, reports started coming out that over 260,000 outlets would soon be accepting bitcoin payments…
Just like that… bitcoin usage went through the roof.
Now, like I said earlier, if and when bitcoin receives similar tax exemptions here in the U.S., will everybody and their mother throw away their dollars and start using bitcoin?
No. But they don’t have to…
Even if we see a small uptick and a gradual increase in usage, that’s enough to send bitcoin’s price much, much higher than it is today.
Nick: So, let’s see, at today’s prices, that would send bitcoin well over $8,000.
Teeka: I think that’s our low-end estimate, Nick. Remember, the U.S. is a much bigger market than Japan. I wouldn’t be surprised to see a jump twice that big.
Nick: And what about other lesser-known cryptos? I assume they would benefit from this as well.
Teeka: Absolutely. They could soar much higher than bitcoin.
Nick: I hear you’re even giving away a small amount of bitcoin to our readers?
Teeka: Yes, I’m so bullish on bitcoin, I bought $1 million worth to give away. You can think of it as a “seed” investment for anyone who joins my research service today.
I believe bitcoin could hit $10,000 in the not-too-distant future. And some of the cryptocurrency experts I’ve talked to believe that a single share of bitcoin will someday be worth over $1 million.
Nick: Thanks, T.
Nick’s Note: Last Thursday, Teeka held an emergency cryptocurrency briefing. More than 250,000 people registered in advance to watch. We realize that many of you missed out on this first-ever event. So, we’re making a replay available today.
From Mark L.: I saw that you’re running another promotion for your Palm Beach Confidential service. I don’t understand that other than pure greed. We already can’t buy into your ideas unless we place the order within 20 seconds of your email, if then.
So, how is this going to help if you bring in more subscribers? If you have a good reason for doing this, please let us know.
Nick’s Reply: Mark, I understand where you’re coming from. When you read about an exciting new investment, you want to get in right away to ride it higher. It’s frustrating when the investment shoots up out of our buy range. I’ll get to that in a minute…
First, our goal is to help people build their wealth. And we’re proud that we’ve helped as many people as possible become financially independent through our research. That’s how we stay in business.
Cryptocurrencies are one of the rare opportunities we’ve found that can help ordinary people make the kinds of gains typically reserved for Wall Street and Silicon Valley insiders. They level the playing field for the little guy.
And here’s the thing… There is still plenty of upside left in cryptocurrencies.
According to the Bitcoin Rich List, fewer than 20 million people own bitcoin. That’s just 0.2% of the world’s population. Ethereum, the second-largest cryptocurrency, is even lesser-known than bitcoin.
Cryptocurrencies are going through the typical new-tech adoption cycle. They’re still in the first stage of innovation. Only people on the cutting edge of technology are involved so far. Congratulations, you’re among the first 1% of all people utilizing this new exciting technology.
But cryptos are about to move to the next stage… the early adopter stage. In this stage, we usually see about 20% of the population using the technology. And that growth is huge. We’ll have over 100 times more people getting into the crypto market.
That’s when the market will really grow. And when it does, there will be even more opportunities for even more people. That’s why we’re selling more subscriptions… to fulfill our mission of helping as many people as possible build their wealth.
Now, onto those frustrating price jumps…
Like other new technologies and stocks, cryptos are very volatile. So, patience is key.
Yes, prices will go up. But most of the time—if you wait a week or two—the price will come back down into buying range. In some instances, we’ll even have a temporary loss on our positions (that’s what happened with bitcoin).
Even the latest Confidential pick—which went out of our buy-up-to price before the issue was released—is now buyable. It’s not too late to profit.
That’s why we recommend you place a limit on our recommendations. When they pull back, you’ll be able to buy them with your limit order.
Mark, we appreciate you following our limits. I’m guessing you’re a successful investor…
For everyone else… DON’T CHASE PRICES!
As I said, most will come back into buy-up-to range. And for the few that don’t, it’s not a problem. We’ll have another recommendation next month.
The cryptocurrency market is going to give everyone enough opportunities as it matures. And as it matures, it will be able to handle more investors.
We’re confident that you will be able to continue making a profit in the crypto market if you follow our advice.
Not since the Model T replaced the horse and buggy has America seen a shift this huge in the way we drive. Within the next two years, we’ll see 10 million of these cars on the roads—a 49,000% increase from today.