Juan Villaverde is an econometrician and mathematician dedicated to the analysis of cryptocurrencies for almost eight years now. He heads the Weiss Ratings team of analysts and computer programmers who designed Weiss cryptocurrency ratings.
Dr. Bruce Ng is a professor in Distributed Ledger Technology (DLT) and has remained a lead crypto-tech analyst for Weiss Cryptocurrency Ratings as soon as they began.
When the Federal Reserve cut interest rates and printed a mountain of money in response to the 2008 global financial crisis, they said these steps were only a brief emergency measure.
A couple of years later, they did the same thing in response to the European debt crisis while insisting these gauges were only temporary.
Then pandemic panic hit. Again, the Fed slashed interest rates and printed another mountain of money. But this time insists these policies were just temporary … began to wear a little thin.
Of course, sharp observers of all-things money always knew this was a farce. Glaring money-printing, once begun, is a tough habit to break.
Debt is now so cosmic in size the merest whiff of higher interest expense threatens to push vast swaths of the economy into bankruptcy.
As this reality sinks in, more and more hedge funds and institutional investors are concluding zero interest rates and limitless money printing are here to stay. And they’re choosing with their money.
Big-time investors are getting ready for Bitcoin.
Here are some highlights:
- Physically-settled bitcoin (BTC tech/Adoption Grade “A-“) futures — which permit institutional investors to take physical delivery of actual BTC — are surging in popularity. In January, physically-settled contracts accounted for less than half the bitcoin futures trading on the Intercontinental Exchange. Now, it’s 72% and climbing.
- Legendary trader Paul Tudor Jones said his flagship fund would buy bitcoin.
- Grayscale Investments, sponsor of America’s first bitcoin stock fund, Bitcoin Trust (OTC: GBTC), scooped up 17,100 more BTC the week ending Sept. 29. That brings total holdings to a whopping 449,800 BTC. That’s 2.4% of bitcoin’s total circulating supply!
- Enterprise software house MicroStrategy announced it would move the bulk of its cash position (some USD 500 million) to bitcoin. In doing so, CEO Michael Saylor put forth two compelling reasons to load up on Bitcoin:
- Forget consumer-price inflation; it’s asset price inflation you should worry about, running 6% to 15% a year. That’s also about how fast real estate, college costs, and stock prices are going up. Put money in a bank? You may as well set it on fire!
- Of all safe-haven assets, bitcoin is the best by far. Gold is already near all-time highs. Buy it here, and maybe you double your money (over many years). But bitcoin’s market cap is only about 1/50th the size of precious metals as an asset class. That’s enough room for several thousand percent gains as it catches up with gold.
And as professional money-managers warm up to crypto, beware of an impending avalanche effect. As bitcoin attracts more and more institutional money, other fund managers will be forced to buy it because none can afford to underperform their peers by not having bitcoin in their portfolios.
Cash melting like butter
We exist in a world where central banks are consuming the money’s buying power at breakneck speed. This naturally lifts the prices of everything, including investment assets, and exceptionally safe havens like bitcoin.
But beyond its safe-haven appeal, bitcoin also represents an emerging technology — that most investors around the world don’t understand and are therefore still skeptical about.
But as cryptocurrencies go mainstream over the next decade, they’re going to make millions of otherwise ordinary investors who buy crypto now vastly wealthy. You and I may as well be among them!
Money melting like an ice cube has changed the nature of investing with the prices of all assets going up, winning supporting boils down to zero in on those that go up fastest.
And in this respect, no other asset class can hold a candle to cryptocurrencies in the future. Top-rated Weiss cryptos are the cream of the crop. They can multiply your money 5-fold, 15-fold, even 100-fold in less than a decade.
As everyone says, The choice will always be yours.