20190814-Teeka-Positioning ourselves for the coming currency crisis

Teeka-Positioning ourselves for the coming currency crisis

-So far this year, Gold is up 17% while over the same period of time BTC is up 300%.   Bitcoin proves to be a tool for a store of value and a hedge against an erosion in value of paper money.

-We have so much fiat currency in the world, that you have $15 trillion of bonds trading at a negative yield. Which means the borrowers—the people who are borrowing—are getting paid to borrow. That’s insane. It’s nuts.

-It is an indictment on the way the world views fiat currency. There’s a reason why central banks are buying more gold now than in any other time in my lifetime. (I’m almost 50.) It’s because they are—in my opinion—enacting one of the greatest thefts in human history. They are taking essentially worthless bits of paper that they print and have complete control over, and they are exchanging the worthless paper for something that has real value. And that is gold.

-Just look what happened in Argentina two days ago. One minute, their currency and their stock market were fine. Literally the next day, the value of their currency dropped 30%, and the value of their stocks dropped 50%.

-We are in the mother of all central bank-induced bubbles. I have never seen a bubble like this before. It’s insane. But for the first time, we now have a bubble in money. We have such an explosion, just a perfusion of paper money that, at some point, clearly can’t last.

-That’s what the gold market is telling us. That’s what the central bank buying all this gold is telling us. So, it’s imperative that we protect ourselves.

-If you’re a gold buyer and are convinced that gold is going significantly higher, I don’t disagree with you. But I would say, if you are going to buy a lot of gold, take 10% or 25% of that allocation and go buy some bitcoin… Let’s call it 10%. Because the delta you’ll get on the bitcoin is so much more than on the gold. You’d have to tie up millions of dollars in gold to get the same type of upside I think you would see in bitcoin.

-So far, bitcoin has been moving 10–20x what we see in gold. So bitcoin, to me, is the digital gold. That’s one aspect of it, not all of it. But it is something that will make you far more money, with far less risk. You don’t have to allocate anywhere near as much capital to bitcoin, because it will go up 10, 20, 30 times what you’ll see in the price of gold.