Inflation is a much bigger socioeconomic problem than the main stream media lets on. We believe in the Bitcoin hedge approach which is your safety net for inflation. If you have Bitcoin as a majority of your portfolio, your buying power goes up, inspite of inflation. It does not go down, with inflation. You want to go down with the sinking ship? Hold cash, CD’s, growth stock mutual funds, bonds. This may not be the most popular opinion. Why not? Because the media does a terrible job of communicating what inflation really is to the general public. Money printing in and of itself causes M1 money stock or supply to grow:
To combat this indisputable fact, the Fed discontinued this tracking in January. The chapwood index proved what real inflation was. Every quarter they charted real inflation by actually polling costs of everyday goods and services in every major market area in the US. That index ended it’s tracking in mid 2020. We contacted Ed Butowsky in Dallas, but received no response. Would have been interesting to find out why this tracking ended close to the time the M1 and M2 Money stock tracking ended. Here is the last Chapwood Index chart:
Obviously, this information is outdated and inflation is up significantly since then. Kyle Bass, Billionaire investor is saying on twitter that inflation is now 12%. Real inflation, not CPI inflation. Below, is a chart that tracks the buying power equivalent of $100 USD, going back to 1799. It is clear that inflation took off after the US left behind the gold standard in 1971. It is also clear that inflation is beginning to ramp up much steeper now than in past years. Why? The out of control money printing in 2020 and especially in 2021. Congress and the Senate will likely approve a similar version of the $6 trillion spending package Biden presented a month ago. This will play out over time. Here is the buying power chart, view on twitter.
25% of all USD ever printed in history, were printed in the last 12 months. When you combine this buying power reduction, due to recent money printing, with the discointinuation of all tracking of money supply growth, and real inflation. You come up with a story line that presents the real possibility, that the US will have inflation mounting into 2022, 2023, and maybe even into 2024. Beyond that is anyone’s guess. The precedent is set. All that is left to do, is wait for the cards to fall where they will. What is the smart money doing:
Hedge funds plan to ramp up #Bitcoin and crypto holdings to more than 7% of assets by 2026.
- Business Insider
Paul Tudor Jones of Tudor Investments with $20 billion in AUM, has admitted on CNBC that he ramped up his Bitcoin investment from 2%, up to 5% of the portfolio. Tudor Investment clients are going to begin seeing these gains as Bitcoin starts to turn more parabolic in the fall, 2021. What if we looked at Bitcoin priced in M1 money stock:
The Bitcoin price actually looks lower by this metric than priced in USD. It is well below the 2017 ATH using the M1 Money Stock metric. How parabolic will the price go in the fall, after all of this re-accumulation and consolidation we have been writing about since March? We still see $160K to $220K as conservative market top prediction. We don’t know when the bull run will top out. It should be late in the 4th quarter. For the time being, we need to be asking ourselves how long will we need this hedge, safety net, and retirement insurance plan? Neutral ATM is asking this question often. We are researching tirelessly to obtain the most accurate result. So far, Bitcoin is the only crypto currency that has provable scarcity, its supply can be tracked at any time, it is provably decentralized, no government can confiscate your Bitcoin. Even if all US exchanges were shut down, there are global locations where Bitcoin can be exchanged into an offline wallet, or from an offline wallet into currency. Our hypothesis is, someday (10 years, 20 years?), Bitcoin will be used to back the US currency. Maybe it is USD, or USDC (digital currency), or perhaps Bitcoin will become the currency. We don’t know. We do know the USD, is beyond it’s time as a viable global reserve currency. It is on borrowed time, literally. Below is the US debt clock:
The Fed has to control the yield curve of 10 year and 30 year treasury bonds. If they stop printing to buy bonds, bond yields go up, interest rates go up, the stock market and real estate market crash! It’s that simple. The Fed is trapped. They have nowhere to go. They have to keep printing to keep the stock market and real estate market afloat. Therefore, it is time for a retirement insurance plan. If your portfolio is centralized to the Fed or any central bank, you risk a deflationary crash. We admit, such a crash would affect Bitcoin just like the corona virus crash did. Which asset outperformed after the corona virus crash. Bitcoin or stocks/bonds? Obviously, Bitcoin by an exponential margin. The garaunteed supply shock provided by the Bitcoin halving every 210,000 blocks mined. The garaunteed 10 minute block time, plus or minus some seconds, provided by the difficulty adjustment keeps Bitcoin steady, consistent, and 100% math based. It is quite simply, the greatest financial invention of the 21st century! Neutral ATM has replaced our stock bond portfolio with Bitcoin and some Gold. We sold most of our Ethereum for more Bitcoin. The insurance this hedge provides, brings financial freedom to the world. When will they find it?
Neutral ATM buys and sells Bitcoin as little as $20 at a time! You do NOT have to buy an entire Bitcoin. Our OTC Desk is coming online soon, low rates, buy or sell online 24/7/365. Neutral ATM is here to get everyone off of zero Bitcoin.
Give Neutral ATM a try. We have low rates, convenient locations and we are expanding. Contact Neutral ATM, we will answer all your questions about Bitcoin and using our ATM machines. Find a Neutral ATM Bitcoin machine location near you.