I NEVER Write about Bitcoin

Monday, 16 November 2020
Wollongong, Australia
By Greg Canavan

[4 min read]

In today’s Insider, you’re going to hear about bitcoin. Which is unusual for me, as I never write about bitcoin. But you won’t hear my opinion. I don’t know enough about it to give you worthy analysis. Which is why I’ll bring crypto expert Ryan Dinse into the conversation.  

But first, in an effort to push back against groupthink and keep our eyes wide open, I want you to consider the latest twists and turns in the ongoing US election battle. You certainly won’t hear about this in the brain-dead Aussie media.

Earlier this morning, on Maria Bartiromo’s Sunday Morning Futures program in the US, Lawyer Sidney Powell claimed she has evidence of massive voting fraud via Smartmatic’s voting software. According to Powell:

We’re fixing to overturn the election results in multiple states and President Trump won by not just hundreds of thousands of votes but by millions of votes that were shifted by this software that was designed expressly for that purpose. We have sworn witness testimony about why the software was designed. It was designed to rig elections.

Strong words…but can she prove it? Powell said:

First of all, I never say anything I can’t prove. Secondly, the evidence is coming in so fast I can’t even process it all.

Powell says she has sworn testimony from someone who knows how the voting system works and was supposedly there when it was created and implemented.

And here’s the kicker: Powell revealed that Retired Admiral Peter Neffenger is Chairman of the Board of Smartmatic, while also being apart of Joe Biden’s transition team. That doesn’t sound fishy at all!

You can watch the interview here and draw your own conclusions. I’m just giving you the information as a follow up to last week’s interview with Jim Rickards, where he gave Trump a 50/50 chance of winning the election.

I don’t know what the outcome will be. I just know it’s a lot more contentious than what the media are telling you. And that has implications for financial markets; at least as far as short-term volatility is concerned.

Perhaps that’s why ‘new money’, in the form of bitcoin, is surging again? Not necessarily because of the expectation that Trump will win, but because of the realisation that the US political system is hopelessly corrupt. A corrupt political system leads to a corrupt monetary system.

And bitcoin provides a digital escape.

Is bitcoin a currency?

I don’t know about that. But right now, it’s acting as a pretty handy store of wealth. It’s the best performing asset in the world this year.

I’m an interested ignoramus when it comes to bitcoin. So let me pass you over to someone who knows a lot more about it. The following excerpt is from last week’s edition of Ryan Dinse’s Extreme Crypto Trader service:

2020 has been the year bitcoin has started to really capture the attention of the more traditional investors and companies.

We’ve had companies like PayPal pivot to providing crypto to their users, banks like JPMorgan and Goldman Sachs open crypto operations, and early movers like MicroStrategy and Square even start to allocate some of their cash holdings to bitcoin as a hedge against fiat collapse.

The herd are coming.

And crypto is actually just following the classic technology adoption curve:


Source: Crazy Egg

[Click to open in a new window]

My take is that we’ve just reached the point where the early majority (in blue) are starting to move into crypto.

These people are pragmatists.

They’re not the enthusiastic early adopters or cultish crypto cheerleaders we often see in crypto.

No, these people are realists and come to the party now because they see a rational opportunity.

Their mindset is probably best exemplified by the news this week that billionaire hedge fund manager, Stanley Druckenmiller — legendary speculator George Soros’ protégé at the Quantum Fund — owns bitcoin.

Druckenmiller was working with Soros when they made the legendary trade in 1992 that “broke the bank of England”.

Perhaps now he’s looking to help break all the banks?!

Anyway, he told CNBC:

“Frankly, if the gold bet works the bitcoin bet will probably work better because it’s thinner, more illiquid and has a lot more beta to it.

“It has a lot of attraction as a store of value to both millennials and the new West Coast money and, as you know, they have a lot of it.”

This is the typical attitude of the early majority.

They’re not drawn by the idealism and vision of the early adopters but by the simple reality that it looks like an increasingly good bet!

Which is fine by us.

More investors equals higher crypto values after all.

The good news is that we’ve still got huge swathes of early and late majority people yet to join the crypto party.

And we want to be positioned in the right place for when that does happen.

Today, that still means bitcoin…

Keep in mind though that bitcoin has gone vertical over the past month. It’s starting to hit the mainstream headlines more, and, well, I’m writing about it today.

And I NEVER write about bitcoin.

That tells you something about the psychology of the market right now. Rising prices garner interest. And as you can see in the chart below, prices have soared in the past month or two.


Source: Optuma

[Click to open in a new window]

With this in mind, here’s how I’m looking at it. I think it’s worth a small portion of your portfolio. As a strategic holding. The monetary system is too far gone. Diversifying is the key to survival over the long term. That means shares, property, gold…and bitcoin.

Having said that, I wouldn’t be buying now. It’s too hot for my liking. But I am taking the time to learn more about it, and will potentially dip my toe in during the next correction phase.

Continue below for Murray Dawes’ ‘Week Ahead’ update, where he looks at a little company that has been surprising the market with the size of the bounce in its revenues after the lockdowns ended.

Cheers,
Greg


A Hidden COVID Play

By Murray Dawes

 

[Click on the picture above to see Murray Dawes’ analysis of a stock that has been surprising the market with the strength of the bounce in its revenues since the shutdown.]

The company I focus on today should do well as we exit the COVID nightmare. They have already seen a strong bounce in revenues after the shutdown, which surprised to the upside.

As companies start to hire again and as things settle down, they should benefit as they offer a platform for providing background checks on prospective employees.

Their business model has shifted from B2C to B2B, and they are finally starting to gain some traction, signing up some large corporates.

The stock is already seeing strong buying pressure and has rallied 100% in the last three months. But if they can continue to bring new clients on board their revenues should continue accelerating.

I do a review of all the stocks I have been analysing for you so you can track the progress of my calls. Some of them are starting to heat up, so if you want to find some other ideas you should watch the whole video above.

You can jump to the analysis of today’s company by clicking on the three horizontal lines in the bottom right corner of the video to see the table of contents.

Regards,

Murray Dawes Signature

Murray Dawes,
Editor, Pivot Trader