Last week, the world took its best shot against bitcoin (BTC). And you know what, bitcoin survived – again…
On May 23, we saw bitcoin tumble to a hair below $30,000. That’s down more than 50% off its all-time high of $64,900 in April.
Bitcoin’s selloff came on the heels of a combo of negative news.
First, Tesla CEO Elon Musk said his company would no longer accept BTC as car payments because BTC mining consumed too much energy.
Then China announced it would again crack down on cryptocurrency trading for what feels like the tenth time over the last five years.
The carnage was massive. We saw nearly $1.2 trillion wiped from the crypto market in less than a week.
That’s why I filmed a special video for my subscribers where I pounded the table and told them not to sell into this weakness.
Here’s what I said:
Let me repeat: You DO NOT sell into weakness. That’s a no-no. That’s a sheep move. If you decide you want to trim some exposure (and I don’t recommend that), then you do it into strength.
The golden rule of bull markets is to sell into strength when you must and buy into weakness when you can. That’s the blueprint for how you get rich from a powerful trend.
I want to congratulate you if you had the courage to ignore the noise and hold onto your positions, because we are already seeing a rapid recovery in prices.
As of this publication, bitcoin was trading around $40,000. So it’s rebounded 33% off its lows.
Friends, that’s incredible.
The world essentially fired a bazooka of bad news at bitcoin and it simply shook it off. And it didn’t require a bailout, quantitative easing, or political help of any kind.
This is the way capitalism is supposed to work.
How many other assets in this modern era of government “helicopter parenting” could survive such an onslaught and rebound so quickly?
So I want to thank you for believing in me, my vision, and most importantly, my research on this market – which suggests we have much more upside in front of us.
The Crypto Genie Is Out of the Bottle
I know many readers are concerned governments will try to either ban or overregulate bitcoin.
China said, “We’re banning bitcoin mining again.” And U.S. Treasury Secretary Janet Yellen caused another kerfuffle with a proposal that would require people to report crypto transfers of at least $10,000 to the IRS.
Let’s face the facts here…
Whether we’re talking about bitcoin energy consumption or illicit use of bitcoin… You don’t have to be a rocket scientist to find the truth.
As I’ve written before, only a tiny fraction of overall illicit transactions involve bitcoin.
If you look at all the numbers, Chainalysis – a blockchain analytics firm that’s developed software to trace and track crypto transactions – estimates that less than 1% of bitcoin transactions are used for illicit purposes.
That amounts to about $10 billion. Sounds like a lot, right?
Well, according to a report from Deloitte, as much as 5% of all cash transactions involve money laundering. That’s as much as $2 trillion per year.
So less than $10 billion of illicit bitcoin transactions versus as much as $2 trillion of illegal cash transactions…
And U.S. corporations do more to skirt tax laws than anybody in the crypto market ever will… As I’ve always said, if you’re trying to commit fraud or crime with blockchain assets, you’re dumber than two rocks in a sock.
If the government can tie you to one transaction on the blockchain… it can immediately unwind your entire transaction history. So it’s just not smart to commit crimes with cryptos.
As I’ve said before, I believe untraceable fiat cash is – and will continue to be – the asset of choice for criminals.
This whole idea that somehow everything in the crypto world is underhanded and murky is really a red herring.
And in the case of energy consumption, more than 75% of bitcoin miners use renewable energy sources. They avoid other energy sources because they’re too expensive.
We’ve got to ask ourselves: Are the people in power that dumb or are there other interests at work that are going to benefit from a depressed crypto price?
Clearly governments are afraid of bitcoin. But like the internet, they can’t ban it. They can’t get rid of it. They can’t put it out of business.
The genie is out of the bottle.
And of course, they’ll try to regulate it much the same way they regulate cash, but there are limits to what they can do to bitcoin.
12x Upside From Here
Many of you have asked me whether the government will get rid of bitcoin. Will they ban it?
The answer is no.
Governments had an opportunity to do that from 2013–2016. And they didn’t do it. Today, it’s too late. The genie is out of the bottle.
Sure, governments might put more regulations on bitcoin. For instance, they can add know your customer (KYC) identity verification.
But we have similar regulations on stocks and bonds. And the estimated value of the world’s securities is $343 trillion.
So, while I certainly don’t like the idea of more regulations… they won’t kill the crypto market.
And that’s what’s critically important.
Friends, if you haven’t already, this recent pullback is a great opportunity to establish a position in bitcoin. I predict it will eventually hit $500,000. So that’s more than 12x upside from here.
And if you’ve been waiting for some quality tokens to come back into buying range… you should absolutely buy them on this selloff. It’s completely overdone.
Again, bitcoin won’t go up in a straight line. And it won’t be an easy ride. Getting rich from crypto is no easy task. You’ve got to have the fortitude of a warrior to get through the ups and downs inherent in crypto.
Remember, volatility is the price of admission for life-changing gains in crypto. Just continue to hang tough – be rational – and let time do the heavy lifting.
Let the Game Come to You!
Editor, Palm Beach Daily
P.S. As the rebound in crypto prices gains momentum, a long-term $30 trillion revolution in an underlying crypto technology is moving right along with it…
And at its current pace, I believe it will become 25x bigger than bitcoin… like buying Microsoft in the ‘80s… or Amazon in the ‘90s.
Any one of these could have made you a millionaire many times over, starting with very little… but just like those investments, you need to get in early.
That’s why I recently shared details on this “No. 1 investment of the decade” in an exclusive interview.