Highlights
From his office in Puerto Rico, Peter Schiff, head of SchiffGold, Euro Pacific Capital, and Euro Pacific Gold Fund (EPGFX) returns with market commentary.
Our guest graciously gifted hurricane relief in Puerto Rico via donations / contributions to help locals rebuild in the wake of the island's most devastating hurricane.
Peter Schiff expects gold and silver to experience a renaissance in 2018.
While gold remains the de facto safe haven asset, Bitcoin has competing aspects that are particularly appealing during political turmoil.
Political refugees can simply memorize their Bitcoin private key and relocate to asylum without fear of confiscation or risk abandoning large assets.
Goldman Sachs recently launched a Bitcoin trading desk and announced plans for institutional custodial services, integral to directing hundreds of billions of dollars from deep pockets.
2018 will mark the genesis of custodial access to Bitcoin and related coins, which could be an exciting time for investors.
The relatively tiny $500 billion crypto market seeks to match the $8 trillion PMs sector (figure 1.1.).
Back of the envelope analysis suggests that Bitcoin could run to $100,000+ on institutional interest alone by 2020, which mirrors several predictions of top analysts.
Crypto assets represent a significant improvement over fiat money via: decentralization, virtually free transactions and anonymity.
Bitcoin is essentially a top of the line highly useful Swiss Army knife compared to a fiat money, dime store pocket knife.
Similar to gold, Bitcoin "Hodled", making the currency even more scarce.
Bitcoin resembles the technological revolution of the VCR, DVD, DVR, ROKU and Firestik.
Such revolutions enhanced the movie experience, not replaced theaters, creating vast new marketspaces and utility for aficionados.
Cryptocurrencies are the natural evolution of money, the perfect amalgamation of digital efficiency, software flexibility, fiat convenience, and gold-like consensus.
Teeka Tiwari posits why even professional investors are perplexed by the seemingly inexplicable rise from sub $0.001 Bitcoin to $10,000+.
Bitcoin represents the first time in modern financial history where the small investor on Main Street had access to entry level investments, typically reserved for Wall Street.
Most securities / shares are underwritten by Wall Street, where early adopters received shares at fire sale prices, such as $.01 (figure 1.1.).
The case for government shutdown of Bitcoin has proven frivolous - S. Korean officials were forced to overturn anti-Bitcoin rules as defiant Bitcoin users stormed the streets in protest.
Given that the SEC, IRS and CFTC each have a different designation for Bitcoin, asset / security / commodity, regulators are stymied to define the asset.
Each time a nation has attempted to shut down the internet, the backbone of cryptos, the backlash was so intense that policymakers were forced to capitulate.
Just as "Rock 'n Roll is here to stay," like it or not, leaders are advised to embrace, not fight the crypto movement.
Figure 1.1. Teeka Tiwari - Bitcoin to $40,000 in 2018 on Institutional Gold Rush
Note. Video provided courtesy of Youtube.com.
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