crypto

By Graham Summers, MBA | Chief Market Strategist

Sometimes we think too much about trades.

It’s easy to do… every day we are inundated with thousands of pieces of information. And if you’re an active investor, there is no shortage of opinions from the mainstream media, social media, and even financial advisors as to what you should own.

However, sometimes it’s best to simply block out all that stuff and let the market show you where to invest.

With that in mind, below is a chart illustrating the performance of three assets since election night.

Which one would prefer to own?

It’s a no brainer: one is up 75% while the others are up just 4% and down 5% respectively. So obviously you want to buy the top performer right?

Here’s the chart with the assets labeled. The top performer is crypto market maker Coinbase Global (COIN) . 

The message is clear here: the Trump administration is going to be EXTREMELY bullish for all things crypto.

Don’t overthink this. The markets are literally telling you where you need to invest.

For those investors looking fror specific investment strategies to profit from Trump’s 2nd term, we just released a Special Investment Report detailing what we consider to be the #1 investment to own during Trump’s 2^nd Term. It rose 2,000% during his first term… and it’s already up 32% since election night!

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Best Regards

Graham Summers, MBA

Chief Market Strategist

Phoenix Capital Research

Let’s dive into the latest development that has the financial community buzzing – Donald Trump’s proposal for a Strategic Bitcoin Stockpile. This proposition is stirring quite a bit of excitement and curiosity, so let’s unpack what it could mean for you and your investment strategy.

Trump’s Bold Move: A Strategic Bitcoin StockpileIn a recent announcement, Trump unveiled his plans to establish a Strategic Bitcoin Stockpile, a move that underscores his shifting view on the cryptocurrency market. This Stockpile is designed to hold the U.S.’s bitcoin, leveraging its potential as a digital asset class and a hedge against traditional market fluctuations.Trump put it simply at a conference in Nashville in July of this year, “NEVER sell your bitcoin… If elected, it will be the policy of my administration to keep 100% of all the bitcoin the U.S. government currently holds or acquires into the future.”Now that Trump is President, this proposal can become a reality.Why It Matters: Potential Impact on the MarketThis isn’t just another fund – it’s a statement. By proposing a Strategic Bitcoin Reserve, Trump is signaling a significant shift in how influential figures understand and utilize digital currencies.Here are a few key takeaways on why this proposition matters:

1. Legitimacy Boost: Trump’s endorsement provides a significant vote of confidence for Bitcoin and could help cement its place as a mainstream investment vehicle. This might encourage other prominent investors and institutions to follow suit, driving further adoption and integration into traditional finance.Investor Confidence: For savvy investors like yourself, greater institutional involvement can translate to more confidence in the market. With influential figures backing Bitcoin, the perceived risk may diminish, making it a more attractive option for a diversified portfolio.

So, what can we expect if Trump’s Strategic Bitcoin Stockpile gets off the ground? Here are a few predictions based on current trends and insights:

1. Increased Institutional Interest: Following Trump’s lead, we might see more institutional investors entering the Bitcoin market. This could drive significant growth and potentially more stable price movements.Regulatory Advances: With more high-profile figures betting on Bitcoin, there may be a push toward clearer and more supportive regulatory frameworks. This can provide a more secure environment for all investors.Mainstream Adoption: As Bitcoin becomes more integrated into traditional finance through such strategic Stockpiles, we could see broader adoption and everyday use cases emerging, further solidifying its role in the financial landscape.

Final ThoughtsTrump’s proposed Strategic Bitcoin Reserve is more than just a bold move; it’s a pivotal moment for the cryptocurrency market. For investors, it presents new opportunities to consider Bitcoin within a diversified, forward-looking investment strategy.Smart investors are already positioning themselves to profit from this.We just published a Special Investment Report, The Bitcoin ETF You NEED To Know About that details a unique investment through which you can buy bitcoin via the stock market, like a regular stock (instead of with a crypto-based brokerage account).We are selling this report as a standalone item for $499… but you can pick up a copy FREE simply by joining our daily market commentary, Gains Pains & Capital.We are making only 99 copies available to the public.To pick up yours…CLICK HERE NOW!Best RegardsGraham Summers, MBAChief Market StrategistPhoenix Capital Research 

by Graham Summers, MBA | Chief Market Strategist

Crypto is about to enter its “iTunes” phase.

All technological revolutions follow two phases:

1. The initial breakthrough phase, which occurs before social/legal frameworks are in place.
2. The “normalization” phase during which social/legal frameworks are implemented giving the technology a societal and financial legitimacy.

If you need a real-world example of this, think of the electronic music file or MP3 revolution.

The first phase was Napster in 1999, which featured the sharing of music in what was later deemed as illegal activity (the legal framework was not yet ready for the technology). During this initial phase Napster exploded in popularity particularly among young people.  At its peak Napster had tens of millions of users.

Then came the lawsuits, Napster went bankrupt, and social/ legal frameworks were introduced for this new technology. During this time Apple introduced iTunes: a version of MP3 technology in which MP3s could be bought and sold in a legally acceptable form. 

Napster is still around. Its marketing promotes the fact it is “100% legal.” And it has about five million users. At its peak, iTunes hit 500+ million users and accounted for 63% of all digital music sales. It is now in the process of being converted over to Apple Music, a new service that also offers music streaming and other services in order to compete with Spotify which is the new market leader. So once again, the technology has changed and requires adaption. And streaming music is now $46 billion market.

So, what does this all have to do with crypto currencies? Under the new Trump administration, bitcoin and crypto currencies will shift from their Napster phase to their iTunes phase.

Bitcoin was invented in 2009. Since that time, the crypto currency market has grown to over 5,000 coins with a total market cap of $3 trillion. It’s unregulated, messy, and highly volatile. Put simply, since 2009, the crypto market has been in its Napster phase,

All of that is about to change. The Trump administration is going to oversee a massive widespread adoption of crypto currencies, particularly Bitcoin.

For starters, Trump himself is a huge proponent of crypto currencies.

How do we know this?

For one thing, Trump spoke at a Bitcoin Conference in Nashville on July 27th. Bear in mind, he was shot a mere two  weeks prior. The fact he did NOT cancel his appearance despite being shot tells us this conference and its subject matter were of personal significance to Trump.

Indeed, Trump sees crypto currencies, particularly Bitcoin as a part of his agenda. He has stated he wants to make the U.S. the “crypto capital of the world” and that crypto mining of strategic importance to the U.S..

Trump is not the only one in his administration to favor Bitcoin. 

Trump isn’t the only member of his administration who is pro-Bitcoin. His  Vice President is J.D. Vance, who personally owns between $100,000 and $250,000 worth of Bitcoin as detailed by financial filings.

And finally, Elon Musk, who has established himself as one of Trump’s most trust advisors, is a big proponent of crypto currencies, including Bitcoin. Indeed, Tesla (TSLA) itself owns nearly $1 billion in Bitcoin.

Put simply, the President, the Vice President, and one of their biggest economic advisors are all involved in Bitcoin in some fashion. And during Trump’s 2nd term, crypto currencies will enter their “iTunes phase”: the phase during which the legal/ social framework is implemented amidst widespread adoption. 

This is when the largest gains/ profits will be made from the crypto markets. Indeed, I fully believe the greatest crypto bull market has just begun.

Smart investors are already positioning themselves to profit from this.

We just published a Special Investment Report, The Bitcoin ETF You NEED To Know About that details a unique investment through which you can buy bitcoin via the stock market, like a regular stock (instead of with a crypto-based brokerage account).

We are selling this report as a standalone item for $499… but you can pick up a copy FREE simply by joining our daily market commentary, Gains Pains & Capital.

We are making only 99 copies available to the public.

To pick up yours…

Best Regards

Graham Summers, MBA

Chief Market Strategist

Phoenix Capital Research

By Graham Summers, MBA

The great debt crisis of out lifetimes is approaching.

The U.S. has now reached the point at which it is adding debt at an exponential rate.

It took the U.S. 232 years to rack up its first $10 trillion in debt. Thanks to the Fed’s egregious monetary policies following the Great Financial Crisis, the U.S. added another $10 trillion in debt in just nine years as the government went on a spending spree.

It’s added another $10 trillion in a little over FOUR years, thanks to the insane spending the U.S. implemented following the pandemic.

And the pace is only accelerating.

In June of this year, the U.S. had $31 trillion in debt. Today, it’s over $33 trillion. So we’ve just added another $2 trillion in a little over FOUR MONTHS.

And the Fed is confused as to why U.S. Treasuries are collapsing!?!

Basic economics tells us that the more of something there is… the less value it holds. Small wonder then that as the U.S. issues more and more debt, the debt is collapsing in value.

Below is a chart of the long-term U.S. Treasury ETF (TLT). It needs no explanation.

Again, the great debt crisis of our lifetimes is fast approaching.

In 2000, the Tech Bubble burst.

In 2007, the Housing Bubble burst.

The U.S. Treasury bubble burst in 2022. And the crisis is now approaching.

Smart investors are already taking steps to prepare for this.

I’ve identified a series of market events that unfold before every crash.

I detail them, along with what they’re currently saying about the market today in a Special Investment Report How to Predict a Crash.

Normally this report would be sold for $249. But we are making it FREE to anyone who joins our Daily Market Commentary Gains Pains & Capital.

https://phoenixcapitalmarketing.com/predictcrash.html

Graham Summers, MBA

Chief Market Strategist

Phoenix Capital Research

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I’ve received a number of emails from readers asking for my thoughts on crypto currencies.

First and foremost, I must warn you, I am a no-BS type analyst. So, if you want me to write something fluffy because you personally are a big fan of crypto, don’t read another word. 

It’s not that I’m opposed to crypto currency per se, it’s that I know how policymakers think as well as how central banks work.

And I know BOTH groups have BIG plans for crypto currencies.

First let’s address the technology itself.

Crypto is in fact NOT a currency. Prior to 1913, by law, Congress was the only entity in the United States permitted to issue currency. It then handed this responsibility off to the Fed in 1913. And the Fed is the ONLY entity that can legally issue currency.

So crypto currencies are NOT currencies. They are just another asset class. To argue otherwise is to say you are counterfeiting money, which is ILLEGAL.

Now, crypto is a tech asset. And all technological revolutions follow two phases:

1)    The initial breakthrough phase, which occurs before social/legal frameworks are in place.

2)    The “normalization” phase during which social/legal frameworks are implemented giving the technology a societal and financial legitimacy.

If you need a real-world example of this, think of the electronic music file or MP3 revolution. The first phase was Napster, which featured the sharing of music in what was later deemed as illegal activity (the legal framework was not yet ready for the technology).

Then along came iTunes: the normalized version of the technology in which MP3s could be bought and sold in a legally acceptable form. 

Bitcoin and crypto currencies are currently in the Napster phase of their development.

As such I am inherently wary of them. Moreover, we’re in something of a mania for this with over 5,000 currencies in the world. We are seeing crypto currencies that were literally created in TWO HOURS as a joke (Dogecoin as the tweet below shows), being valued at tens of billions of dollars.

I believe over 99% of cryptos are ultimately worthless. 

Why?

Because at some point the US Government is going to do one of two things:

1)    Start taxing cryptos like regular liquid assets (stocks).

2)    Introduce its own “cash-less” means of exchange/ digital currency.

Regarding #1, since 2014 the IRS currently views crypto  as “property” and suggests it should be taxed as such.

Now there is no federal property tax, so this would mean you would have to tax your crypto holdings based on what property taxes are in your local government. As of 2020, this ranged from the lowest state (Hawaii at 0.3%) up to the highest, (New Jersey at 2.2%.)

By law, come tax season you are supposed to value your crypto holdings at market values and pay taxes on them.

If you think that is bad news, you’re not going to want to read the rest of this article. 

The current Secretary of the Treasury, Janet Yellen, has floated the idea of taxing cryptocurrencies as much as 80%, yes EIGHTY percent.

She is not alone, President Biden’s proposed tax increases would see capital gains taxes as high as 43%.

So, you literally have the Commander in Chief and the person in charge of the U.S. Treasury BOTH pushing for taxing cryptos at a minimum of 40%.

You can ignore this or claim its bunk, but if the government has proved one thing over the last 300 years, it’s that if there is money to be made from taxing an asset, they will start taxing it.

On top of this, at some point in the future, the Fed is going to introduce its own digital currency. We’ll address this topic in tomorrow’s article. 

Originally posted on www.gainspainscapital.com

Swing by to pick up three FREE investment reports valued at over $300 today.

Graham Summers

Chief Market Strategist

Phoenix Capital Research