When I first invested in Precious Metals in May 2002 – actually, PM miners, starting with 100 shares of Newmont Mining; I was still working as a sell-side oilfield service equity analyst at Salomon Smith Barney in New York. My investment rationale was far less complex that it became later-on; let alone, for going all-in to Bitcoin 14 years later.
Which was, that the dollar was overvalued against other fiat currencies; in a financial world that was “damaged” – by the dotcom bubble burst, and 9/11 aftermath; but not in imminent danger. For the most part, America’s standing in the world was positive; debt levels were vastly more manageable - the U.S. national debt was just $5 trillion, vs. $21 trillion today (excluding $5 trillion “off balance sheet”); and there was no real reason, that I could see, to fear the future.
After the 2008 financial crisis, that perspective changed entirely. For one, I realized the problem was not the U.S. dollar per se, but fiat currency in general. After all, every prior fiat regime had failed; and this time around, care of the U.S. reneging on the Bretton Woods Agreement in 1971 - when it abandoned the gold standard; every nation on Earth was part of it. Worse yet, a single nation, the U.S., care of the power ceded to it by Bretton Woods; and subsequently, the Petrodollar agreements of the mid-70s; had “reserve currency” status. Thus, the ability to print dollars at will, creating relentless, creeping inflation domestically, and even greater amounts overseas.
When Central banks, led by the Fed, “responded” to the crisis with unprecedented money printing, I realized the system was forever broken; i.e., a balloon waiting for a pin. Care of the “wonders” of financial engineering – like off-balance-sheet derivatives and high frequency trading algorithms; and relentless market manipulation, both overtly (QE and NIRP/ZIRP) and covertly (President’s Working Group on Financial Markets, Exchange Stabilization Fund, and Gold Cartel); history’s largest, most destructive fiat Ponzi advanced another decade; yielding record financial asset valuations, alongside record debt, inflation, and wealth inequality. And with it, heightened political instability, amongst nations no longer willing to accept America’s “benevolent” financial rule…let alone, its imperialistic, borderline “rogue-nation” military policies.
Throughout this period, I was fully invested in Precious Metals – in every imaginable way. In 2006, I started working for gold and silver mining companies, whilst holding 100% of my liquid net worth in their stocks. In 2008, at the onset of the financial crisis, I started divesting miners in lieu of physical metal; and in 2011, went all-in physical gold and silver - just as I was leaving five years of misery working for miners, to join one of the nation’s largest bullion dealers as Marketing Director.
By then, I was extremely well-known in the Precious Metals community for my “PM Maximalism”; but this, too, proved to be a miserable, life-draining experience - as the “powers that be” continued to destroy future generations by printing money, accumulating debt, and manipulating markets. Frankly, I didn’t know what to do, as there was no way I’d divest what I viewed as historically undervalued PMs in lieu of historically overvalued stocks and bonds. Moreover, given the rapidly growing, exponentially compounding damage fiat currency was causing, I could only conclude that an historic financial crash was inevitable - as the only way this debt could be repaid; perhaps, by repudiation, or perhaps, hyperinflation.
Lo and behold, Bitcoin was “magically” invented in October 2008, at the heart of the very financial crisis that spawned its need – when “Satoshi Nakamoto’s” white paper was anonymously uploaded to the internet. By 2009, it was publicly trading, but I didn’t hear of it until three years later – when, as a monetary expert, people started asking about it.
Back then, very little traded, and its market value was infinitesimal. There was very little information publicly available – let alone, a vast array of social media experts, as today in the Twittersphere. The concept of Bitcoin as sound money intrigued me – but given my experience following fiat currency, I could not believe the 21-million-coin cap could possibly be real. That is, that someone couldn’t unilaterally increase the supply, as Central banks do with fiat currency.
My first experience with Bitcoin was buying into the late 2013 rally, where I ultimately lost one Bitcoin at Mt Gox. The experience, though small in terms of financial loss, soured me on Bitcoin for the following two years. However, I continued to watch it – and was extremely impressed by the fact it didn’t fail. Moreover, I was starting to learn of the 21 million cap’s “hard code” – thus, feeling more comfortable it was for real. Thus, when prices started turning up in late 2015, I decided to take the plunge again – this time, in much bigger size.
While my Bitcoin investment was growing, my faith in Precious Metals was undeterred – particularly given the increased social strife in the world, as highlighted by the “unexpected” (I predicted it in countless articles) BrExit vote in June 2016. Throw in equally contentious elections in Portugal, Italy, Spain, France, Greece, and the U.S.; and similar political tensions elsewhere; and it was obvious the “99%” were starting to fight back, against a system where a handful of Central bankers were causing so much damage, for their own personal benefit.
2017 was unquestionably the turning point of my then 28-year career – as while the “powers that be” continued to relentless suppress Precious Metals; to the point that my job was in jeopardy; the Bitcoin “scaling debate” raged for six long, terrifying months. Had Roger Ver gotten his way, Bitcoin would have been split in two – potentially, destroying what made it so valuable forever. To me, it was the last, best hope for my career, financial security, and humanity…so it was an incredibly stressful time. However, when Bitcoin ultimately won the war in July/August – in spectacular fashion – I knew the world had been positively changed forever…and as such, went all-in on Bitcoin in my portfolio, and left Miles Franklin to start CryptoGoldCentral; at the same time, realizing gold and silver’s days as the leading store of value assets were numbered.
Now that I am fully immersed in Bitcoin – with a “side dish” of BRhodium to come – I have hope for the world I never had before…at least since 2002, when I first entered Precious Metals. Due to Bitcoin’s growth – in size, security, adoption, technological innovation, and “anti-fragility” – I no longer fear the future. Fiat currency will surely die, as it always does. However, with Bitcoin – and cryptocurrencies that play complimentary economic roles – the collapse of the historic global debt edifice will likely be less terrifying…coincident with a political transition from today’s dysfunctional states into one where decentralization rules, and demagogues slowly die out.
HODLing Bitcoin, you too will see the changes – in both your finances, and outlook on the world!