When the world goes to war, investors flee to asset ‘safe havens’. That used to be gold, physical gold.
War and geopolitical turmoil leave ripples that spread through global markets. In particular currency markets.
And right now we might just be on the brink of war.
‘Fire and fury,’ were the words from President Trump, in reaction to threats out of North Korea. You get the feeling that Trump isn’t the kind of President who is afraid of unlocking the ‘football’ if he has to.
The ‘football’ by the way is the codename for the US nuclear codes.
Now with Kim Jong Un threatening to fire missiles at Guam (a US military base) it could all kick off at any moment.
This heightened tension between the East and the West isn’t anything new. But with Trump at the helm of US ‘nukes’ and Jong Un at the helm of North Korea ‘nukes’ it could turn ugly, fast.
This by the way has all come to a head in just the last day. This increasing chance of war means good news for physical gold. Or at least that’s what the mainstream will lead you to believe.
Where’s the real safe harbour?
The spot price of according to Bloomberg is now US$1,277.63. And according to Bullionvalut.com,
‘GOLD PRICES jumped to 8-week highs versus a rising Dollar on Wednesday as new data showed US wages remain sluggish while President Trump repeated his willingness to use nuclear weapons against North Korea after Pyongyang threatened to strike the United States’ bomber base on Guam.’
With no sign of calm ahead, it’s very likely that there will be continued money flow into physical gold.
Now, we can admit that gold does play a role in asset protection.
But for too long people have placed too much faith in gold. It’s an asset that might be seen as ‘safe’ but ultimately it does nothing for your wealth. At least not anymore.
We’re not saying don’t buy gold. But if you’re playing the ‘safe harbour’ angle and still want to see life changing performance, then you need to look elsewhere. You need to be investing in bitcoin and cryptocurrency.
If you’ve been a gold ‘bull’ and you’re not at least considering cryptocurrency as part of your strategy, then you’re simply missing out.
When it comes to the ultimate ‘safe harbour’ asset, in our view there’s simply none better than bitcoin. And when people call bitcoin ‘digital gold’, they’re not too far away from the truth.
Is bitcoin like gold?
Just like gold, bitcoin has a limited supply. Just like gold, bitcoin performs in times of geopolitical turmoil. You can store gold in a vault or even under the mattress. You can store bitcoin in a vault too, and keep it under your mattress.
Although with bitcoin you keep it on a cold storage device, like a small USB.
Just like gold, you can use bitcoin as a store of wealth. And just like gold, you can convert it into fiat money. These similarities do make bitcoin appear to be like a digital version of gold.
But the reality is far better.
First, look at the performance of the two. Since May this year the spot price of physical gold has barely changed. Bitcoin on the other hand is up more than 141%. In fact it was only around March and April this year that one bitcoin was worth roughly the price of one ounce of gold.
Today the price of bitcoin is closer to three times the price of gold.
[Click to enlarge]
Quite simply bitcoin is not only a better performing asset than physical gold, in my view it’s also safer.
Now we might add that ‘safe’ is a dangerous term to use. The reality is bitcoin is highly volatile. It is prone to huge price swings. While it’s now over US$3,400, in mid-July it was under US$2,000. And a year ago it was an astonishing US$592.
While the price of bitcoin has gone nuts, it has also fallen equally as fast in the past. We’ve seen it firsthand. But things are a little different today. Today the world is awake to what bitcoin is capable of.
In a brand-new special investor report, crypto analyst, Ryan Dinse shares why he believes Ethereum is the best crypto you can invest in right now and why it could: ‘blow past Bitcoin entirely in 2017’.
As you’ll discover, Ryan believes just a small $200 stake in this cryptocurrency could balloon into $2,138 starting now.
To download your FREE report called: ‘Why Ethereum Could Be the One Coin to Rule Them All’ and take out a subscription to Money Morning.
Enter your email address below and click ‘Send My Free Report’.
The bitcoin revolution has begun; are you in or out?
Bitcoin can operate out of the reach of centralised powers.
The Fed or the Reserve Bank can’t influence it. The government can’t take it away from you. Heck, most of them barely know what it is. And as bitcoin is decentralised, technically it doesn’t even exist in any one country.
It is the most pure, libertarian financial system in existence. And it’s still completely new to most people. That’s what makes it so exciting and so full of potential.
We describe bitcoin and the rise of cryptocurrency as the ‘single biggest wealth building opportunity in history.’ I’ve spent over six years researching, writing about, trading and existing in the world of bitcoin and cryptocurrency.
And I’ve put all my experience, expertise and knowledge into an easy to read book that explains it all called, Crypto Revolution: Bitcoin, Cryptocurrency and the Future of Money. From the beginnings of bitcoin through to the future and how you could mint a fortune investing in cryptocurrencies today.
It’s written for people like you to understand how big a moment in history you’re witnessing. And to open your eyes to the opportunity in play. The significance of cryptocurrencies should not be ignored. And by the time you finish reading my book, you’ll understand why.
The current price of bitcoin is astonishing. But we think that’s nothing compared to what will come when the masses — billions of people — start to accept and use bitcoin in the way they use cash today.
We don’t take this revolution lightly.
We think it’s the most significant disruption to global finance there has ever been. It has come about through the perfect intersection of failing global finance, geopolitical turmoil, anti-establishment movements, and the capability of connected, high-tech networks.
This financial uprising wasn’t possible in the 90s. It wasn’t really possible in the 00s. It has only become possible due to the failings of the current financial system. It’s growing in strength because of the global addiction to debt. It’s more popular each day because of the inability of government to look after their citizens.
Quite simply, the world of bitcoin and cryptocurrency is here to stay. The only decision you have to make is will you be a part of it, or will you ignore the opportunity staring you in the face?
Editor, Australian Small-Cap Investigator