crypto

Can DOGE Fix This? We’ll Find Out Soon!

By Graham Summers, MBA | Chief Market Strategist

More Department Of Government Efficiency (DOGE) news.

As the Trump administration prepares to take office on January 20, 2025, more and more data points detailing the egregious fraud, waste, and abuse in government spending are being made public.

Consider…

The Federal Government spends $15 billion per year on office buildings/ energy costs, not to mention hundreds of millions if not billions of dollars on office furnishings. Despite this massive overhead, the government is current sitting on over 7,000 vacant office buildings as most Federal government employees are still allowed to work from home.

Bear in mind, the pandemic ended over 18 months ago.

Having said that, the primary issue as far as government waste is concerned isn’t the number of Federal employees which hasn’t grown by much over the last 20 years… rather it’s the government spending, particularly on ludicrous projects/ programs that offer little if any real benefit to society.

Some of the more disturbing items DOGE has noted…

  • Congress dispensed $516 billion to programs whose authorizations previously expired under federal law. Over half of that ($320 billion) pertained to programs whose authorizations expired over a decade ago.
  • The Pentagon has failed its 7th STRAIGHT AUDIT and is unable to account for where $824 BILLION in spending went. That’s roughly the same size as Poland’s GDP.
  •  In 2023, federal programs made $236 billion in improper payments. That’s billion with a “b.”
  • Some $200 billion in pandemic spending/ stimulus went to fraud/ abuse whether it be companies that didn’t qualify for PPP loans, fake companies that didn’t even exist, etc.

These are just the LARGE line items of note. Once you start delving into the smaller, individual programs the government funds, things go from disturbing to ludicrous.

Some of the worst of the worst that DOGE has highlighted on X (formerly Twitter).

  • $45 million for a diversity and inclusion scholarship in Burma
  • $3 million for “girl-centered climate action” in Brazil
  • $288,563 for diverse bird watcher groups
  • $100,000 to study if tequila or gin makes sunfish more aggressive
  • Almost $1 million to study if cocaine makes Japanese quail more sexually promiscuous
  • $750,000 to study if Neil Armstrong said “One small step for Man” or “One small step for ‘a’ man” during the moon landing.
  • $28 million in licensing fees for a green camouflage pattern for Afghan National Army uniforms. Bear in mind, the “camouflage” didn’t work as Afghanistan is mostly desert.
  • $2.5 million on a Super Bowl Ad for the Census
  • $1.7 million for holograms of dead comedians
  • $500,000 to build an IHOP in Washington, DC

And on and on.

The mere fact DOGE is bringing these items to the public’s consciousness is a worthy endeavor. Hopefully, DOGE can get rid of this stuff and get government spending under control. As we write this, the Federal debt has cleared $35 TRILLION and is adding $1 trillion in new debt every 100 days.

This spending isn’t free. Interest payments on the federal debt have cleared $1 trillion per year and are now the largest line item in our annual federal budget. If DOGE doesn’t get government spending under control, a debt crisis is coming sooner rather than later.

The one thing that IS clear is that DOGE would improve the U.S. fiscal situation. This would remove one of the biggest concerns for the stock market (the U.S. debt mountain/ massive deficits) and open the door to new highs.

On that note, we just published a Special Investment Report detailing that, as well as the #1 investment to own during Trump’s 2nd Term.

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.

As I write this, there are only 54 left…

To pick up yours…

CLICK HERE NOW!

Graham Summers, MBA

Chief Market Strategist

Phoenix Capital Research

Posted by Phoenix Capital Research in Banana Republic Corruption, Central Bank Insanity, crypto

The Markets Are SCREAMING to Buy This, Not Stocks

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 2nd Term. It rose 2,000% during his first term… and it’s already up 32% since election night!

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.

As I write this, there are only 56 left…

To pick up yours…

CLICK HERE NOW

Best Regards

Graham Summers, MBA

Chief Market Strategist

Phoenix Capital Research

Posted by Phoenix Capital Research in crypto

Breaking Down Trump’s Strategic Bitcoin Stockpile…

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 

Posted by Phoenix Capital Research in crypto

Three Things Serious Investors Should Know About This Week

The Fed claims to be politically independent, but that’s largely a myth. And no one is more aware of that than the new President of the United States, Donald Tump.

This week our host, Graham Summers, MBA, delves into the history of the Fed’s political interference, outlining clear examples in which the Fed has “tipped the scales” in favor of the establishment.

Graham also outlines some of the proposals the Trump administration has floated to address this situation, including handicapping the Fed’s autonomy with interest rate policy and more.

Put simply, a Trump 2nd Term could very well revolutionize the financial system. And this week, Graham breaks it all down into easy to understand terms as only he can.

To access this week’s episode of Bulls Bears and BS…

TONIGHT AT MIDNIGHT, we are DOUBLING the price of Private Wealth Advisory from $249 per six months to $499 per six months.

To join Private Wealth Advisory at the soon to be discontinued price of $249 per six months…

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The below trades are just from the last five weeks alone.

There are only a handful of slots left for this product. The coins we will be trading are not always super liquid. So we need to keep this product’s subscriber base SMALL.

You can take out a 60-day trial subscription to Crypto Pro today.

Every subscription comes with:

-A copy of our Introduction to Crypto Currencies Special Report outlining what they are, how to trade them, and which broker to use ($249 value)

-Three (3) client-only trading guides that show you how to profit lock in life-changing profits and avoid major losses from crypto ($999 value)

-TWENTY (20)  weekly trades (our team has maintained win rates of 75% since 2015)

– A copy of our The Bitcoin ETF You NEED to Know About Special Report ($249 value)

-A Signed copy of Graham’s best-selling book “Into the Abyss”

-Our Weekly Investment Podcast detailing the most important developments in the economy and financial markets.

If you decide Crypto Pro is not for you anytime during the first 60 days, just drop us a note and we’ll issue a full refund .

To grab one of the last remaining slots to Crypto Pro while they’re still available…

Posted by Phoenix Capital Research in 2024 Election, crypto

The Greatest Crypto Bull Market Has Just Begun

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

Posted by Phoenix Capital Research in crypto

The Great Debt Crisis of Our Lifetimes is Approaching…

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

Posted by Phoenix Capital Research in crypto
Warning: the Current Crypto Market is Napster and iTunes is Coming, Pt 2.

Warning: the Current Crypto Market is Napster and iTunes is Coming, Pt 2.

Yesterday I outlined why I believe most crypto-currencies will eventually prove worthless.

By way of quick review, 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.
  • 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.

I believe bitcoin and crypto currencies are currently in the Napster phase of their development. And the Fed will soon introduce “iTunes.”

We know that as far back as 2017, the Fed was already studying this issue:

As the price of the cryptocurrency continues to soar, the Federal Reserve apparently is giving thought to having a product like bitcoin for its own.

William Dudley, president and CEO of the Federal Reserve Bank of New York, said at a conference Wednesday that the Fed is exploring the idea of its own digital currency, according to reports from Dow Jones.

Any product likely would be well off in the future, he said, adding that it would be “very premature” to estimate when the Fed would come up with its own offering, according to Bloomberg.

Source: CNBC

More recently, on February 5th 2020, Lael Brainard who sits on the Federal Reserve’s Board of Governors, which is in charge of establishing Fed policy, stated the following:

In a Bank for International Settlements survey of 66 central banks, more than 80 percent of central banks report being engaged in some type of central bank digital currency (CBDC) work.12 … a few central banks report that they are moving forward with issuing a CBDC. Building on the tremendous reach of its mobile payments platforms, China is reported to be moving ahead rapidly on plans to issue a digital currency.13

Given the dollar’s important role, it is essential that we remain on the frontier of research and policy development regarding CBDC… we are conducting research and experimentation related to distributed ledger technologies and their potential use case for digital currencies, including the potential for a CBDC. We are collaborating with other central banks as we advance our understanding of central bank digital currencies.

https://www.federalreserve.gov/newsevents/speech/brainard20200205a.htm

Here is a senior member of the Fed stating point blank that the Fed needs to introduce a central bank digital currency (CBDC) in order to maintain the geopolitical standing of the U.S. dollar. The fact she mentions this RIGHT after discussing the fact China is moving forward with a sovereign digital currency tells us that this is a matter of national security for the U.S.

And then just this week, Fed Chair Jerome Powell commented that crypto currencies are “not convenient for payment” due to swings in value. He added that the Fed will issue a report on U.S. digital currency this summer.

Look, it’s obvious what the Fed is doing here. China has already launched a pilot version of the digital yuan. Ukraine, Saudi Arabia, Sweden and Thailand are also doing the same.

Do you think the Fed, the single most important central bank in the world, which controls the world’s reserve currency (the $USD) is going to sit back and let the world move into the digital currency space without moving itself?

No chance in hell.

Which means at some point in the not-so-distant future, the Fed will introduce “Fed Coin” or whatever its CBDC will be called

When that happens, 99.9% of crypto currencies will go to zero.

After all once the Fed introduces its own crypto currency, EVERY other crypto currency would then exist in direct competition to the Fed’s CBDC, which opens the door to charges of counterfeiting and other Federal felonies.

Currently crypto does NOT compete with the Fed because the Fed doesn’t have a CBDC yet. Once it does, everything changes.

Let me put it this way… what happened to Napster when iTunes showed up?

Bear in mind, Apple the company is nowhere near as powerful or formidable a competitor as the U.S. government. Someone might win a lawsuit against Apple. Very few people win lawsuits against the U.S. government.

Enjoy crypto in its current form, but know that it’s like Napster, and soon iTunes will come along.

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

Posted by Phoenix Capital Research in Central Bank Insanity, crypto
Warning: the Current Crypto Market is Napster and iTunes is Coming, Pt 2.

Warning: the Current Crypto Market is Napster and iTunes is Coming, Pt 2.

Yesterday I outlined why I believe most crypto-currencies will eventually prove worthless.

By way of quick review, 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.
  • 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.

I believe bitcoin and crypto currencies are currently in the Napster phase of their development. And the Fed will soon introduce “iTunes.”

We know that as far back as 2017, the Fed was already studying this issue:

As the price of the cryptocurrency continues to soar, the Federal Reserve apparently is giving thought to having a product like bitcoin for its own.

William Dudley, president and CEO of the Federal Reserve Bank of New York, said at a conference Wednesday that the Fed is exploring the idea of its own digital currency, according to reports from Dow Jones.

Any product likely would be well off in the future, he said, adding that it would be “very premature” to estimate when the Fed would come up with its own offering, according to Bloomberg.

Source: CNBC

More recently, on February 5th 2020, Lael Brainard who sits on the Federal Reserve’s Board of Governors, which is in charge of establishing Fed policy, stated the following:

In a Bank for International Settlements survey of 66 central banks, more than 80 percent of central banks report being engaged in some type of central bank digital currency (CBDC) work.12 … a few central banks report that they are moving forward with issuing a CBDC. Building on the tremendous reach of its mobile payments platforms, China is reported to be moving ahead rapidly on plans to issue a digital currency.13

Given the dollar’s important role, it is essential that we remain on the frontier of research and policy development regarding CBDC… we are conducting research and experimentation related to distributed ledger technologies and their potential use case for digital currencies, including the potential for a CBDC. We are collaborating with other central banks as we advance our understanding of central bank digital currencies.

https://www.federalreserve.gov/newsevents/speech/brainard20200205a.htm

Here is a senior member of the Fed stating point blank that the Fed needs to introduce a central bank digital currency (CBDC) in order to maintain the geopolitical standing of the U.S. dollar. The fact she mentions this RIGHT after discussing the fact China is moving forward with a sovereign digital currency tells us that this is a matter of national security for the U.S.

And then just this week, Fed Chair Jerome Powell commented that crypto currencies are “not convenient for payment” due to swings in value. He added that the Fed will issue a report on U.S. digital currency this summer.

Look, it’s obvious what the Fed is doing here. China has already launched a pilot version of the digital yuan. Ukraine, Saudi Arabia, Sweden and Thailand are also doing the same.

Do you think the Fed, the single most important central bank in the world, which controls the world’s reserve currency (the $USD) is going to sit back and let the world move into the digital currency space without moving itself?

No chance in hell.

Which means at some point in the not-so-distant future, the Fed will introduce “Fed Coin” or whatever its CBDC will be called

When that happens, 99.9% of crypto currencies will go to zero.

After all once the Fed introduces its own crypto currency, EVERY other crypto currency would then exist in direct competition to the Fed’s CBDC, which opens the door to charges of counterfeiting and other Federal felonies.

Currently crypto does NOT compete with the Fed because the Fed doesn’t have a CBDC yet. Once it does, everything changes.

Let me put it this way… what happened to Napster when iTunes showed up?

Bear in mind, Apple the company is nowhere near as powerful or formidable a competitor as the U.S. government. Someone might win a lawsuit against Apple. Very few people win lawsuits against the U.S. government.

Enjoy crypto in its current form, but know that it’s like Napster, and soon iTunes will come along.

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

Posted by Phoenix Capital Research in Central Bank Insanity, crypto

Warning: Crypto is Napster and iTunes is Coming, Pt 1


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

Posted by Phoenix Capital Research in crypto