Business Insider reports bitcoin broke above $700 over the weekend. That’s the highest dollar amount the cryptocurrency’s traded for since February 2014.
In less than a month, bitcoin’s jumped about 30%… surging from $450 in mid-May to $693 at the time of this writing.
Regular Daily readers know there are about 1.2 billion reasons for the swell…
China’s epic debt balloon is large—and keeps getting larger. In the first quarter of 2016 alone, the Chinese government went an additional $1 trillion into debt in an attempt to stimulate its flagging economy.
To bolster the government’s stimulus, the Chinese central bank—the People’s Bank of China—also devalued the Chinese currency (the yuan) by 1.27% against the U.S. dollar (starting April 1).
That may not sound like much… but it’s a big move for a currency in a short time. And it’s left Chinese citizens scrambling for safety…
One of their favorite yuan alternatives is the “granddaddy” of all cryptocurrencies: bitcoin. Chinese exchanges are already responsible for 95% of global bitcoin trading.
When a larger subsection of the Chinese population panics over the next devaluation, the move into alternatives like bitcoin is going to be like an elephant trying to squeeze through a mouse hole…
I asked PBRG’s resident cryptocurrency expert, Palm Beach Letter editor Teeka Tiwari, to weigh in on bitcoin’s price action. Here’s what he told me:
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I’ve always said that cryptocurrencies are a type of chaos hedge. We are seeing a lot of chaos right now and—not surprisingly—bitcoin is soaring. I think we will see more chaos. That will push bitcoin to a new all-time high this year (over $1,200 per coin). Remember, with the devaluation of the yuan, Chinese investors are also using bitcoin as a way to bypass currency controls. That puts a deeply powerful tail wind behind this trend. |
Bottom line: Teeka says the cryptocurrency rally is just getting started. His four favorite alternative currency recommendations are already up between 16% and 87% in under two months. If you want a chaos hedge with a higher potential upside than gold, it’s time to take a serious look into the crypto space.
All Palm Beach Letter subscribers can click here to review Teeka’s picks. Others can click here to learn why an unrelated—and potentially more powerful—event is about to launch one key cryptocurrency much higher…
Here’s Gold’s “Magic Number”
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Do you know about the “Magic Number” that appears before EVERY big move in gold, before EVERY big move in silver, and before EVERY big move in many precious metals stocks? Learn this number and how it works before you invest another penny. Full story here…