Bitcoin And Inflation

I’m completely puzzled on what to do.

Market valuations are out of control. Commodity prices reach new highs everyday. Real inflation is over 10%.

Cash is a liability.

Going into 2022 I was fully invested. Very little cash in my accounts. Loaded up across fifteen different names and pockets full of physical gold.

With real inflation over 10%, its tough to have a large cash position. A 10% loss in real purchasing power is a real liability.

I spent the past weekend thinking about the fiat dollar and what hyperinflation could mean to the economy.

We are purely a digital economy now. No one carries around cash. Benjamin’s are dead.

As cashless society had me thinking. If we hyperinflate, no one is going to pay for goods using physical gold or junk silver. It would be too inconvenient.

Imagine walking to the store with a pocket full of gold wanting to buy groceries. The chance of that happening is slim to nil.

The more likely case in a hyperinflationary environment is the use of a digital currency with a fixed supply. Namely bitcoin.

The transition to a digital currency already seems to be happening. Fly to Miami and see for yourself how many merchants accept bitcoin as tender.

Even me, an old school value investor, has started to pay individuals in bitcoin and accept it as legal tender for my online side hustles. It is quite remarkable.

I’m not at the point where I am buying bitcoin as an investment. In the end, its just a currency. A way to pay for goods and services.

Over the course of the coming weeks I plan to try and understand the use for bitcoin.

I have avoided the crypto space as currency investing is difficult. There are no cash flows. The present and future value is unknown to forecasters.

What makes bitcoin particularly interesting is the fact that it is a digital payment method with a fixed supply. The world will continue to go digital. Goods will be transacted through computer code. Physical currency will die.

The world has not used a fixed currency standard for almost one hundred years.

Britain stopped using the gold standard in 1931, and the U.S. followed suit in 1933.

We won’t go back to transacting for goods and services in any form of physical currency. Digital transactions are just too seamless.

Digital gold? Unlikely when there are alternatives in the crypto world that already work.

Bitcoin is slowly taking market share and will be a great case study in business schools.

From my understanding there has never been anything like this. An independent currency developed out of nowhere that competes head-on with government controlled fiat currencies.

If bitcoin makes real ground and begins taking share from ancient fiat currencies, politicians across the world will implement massive regulations.

Using bitcoin could be declared an act of treason. For terrorist organizations and anarchists.

At the same time, I wouldn’t be surprised if Satoshi Nakamoto is an alias created by the CIA with help from the Federal Reserve.

Regulators, bankers and money makers have seen the writing on the wall. Overspending and running a money printer non-stop will eventually lead to massive hyperinflation.

Bitcoin could be a government created currency. Build it and pump it to the masses.

When the day of reckoning comes, the world has a one unit currency for all to use. A currency for The New World Order.

My thoughts on bitcoin are just preliminary at this point. 99% of cryptos will likely go bust or turn out to be the roach infested scams that they are.

Bitcoin on the other hand is a decentralized digital currency that may have legs as a contender for business transactions.

Want to learn more about investing? Join the Pro version of Alpha Letter where we discuss deeply discounted stocks that Wall Street isn’t looking at.

As a subscriber you get access to all of my top ideas and research, written by a former hedge fund analyst.

Access includes 2-3 stock ideas per month on companies with market caps under $300 million. Don’t like what I research and invest in? Get you full money back, no questions asked.

Disclaimer: The publisher does not guarantee the accuracy or completeness of the information provided in this page.  All statements and expressions herein are the sole opinion of the author or paid advertiser.

Alpha Letter is a publisher of financial information, not an investment advisor.  We do not provide personalized or individualized investment advice or information that is tailored to the needs of any particular recipient.  

THE INFORMATION CONTAINED ON THIS WEBSITE IS NOT AND SHOULD NOT BE CONSTRUED AS INVESTMENT ADVICE, AND DOES NOT PURPORT TO BE AND DOES NOT EXPRESS ANY OPINION AS TO THE PRICE AT WHICH THE SECURITIES OF ANY COMPANY MAY TRADE AT ANY TIME.  THE INFORMATION AND OPINIONS PROVIDED HEREIN SHOULD NOT BE TAKEN AS SPECIFIC ADVICE ON THE MERITS OF ANY INVESTMENT DECISION.  INVESTORS SHOULD MAKE THEIR OWN INVESTIGATION AND DECISIONS REGARDING THE PROSPECTS OF ANY COMPANY DISCUSSED HEREIN BASED ON SUCH INVESTORS’ OWN REVIEW OF PUBLICLY AVAILABLE INFORMATION AND SHOULD NOT RELY ON THE INFORMATION CONTAINED HEREIN.

No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned.  

Any projections, market outlooks or estimates herein are forward looking statements and are inherently unreliable.  They are based upon certain assumptions and should not be construed to be indicative of the actual events that will occur.  Other events that were not taken into account may occur and may significantly affect the returns or performance of the securities discussed herein.  The information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and the publisher undertakes no obligation to correct, update or revise the information in this document or to otherwise provide any additional material.

The publisher, its affiliates, and clients of the a publisher or its affiliates may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities).  To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.

Neither the publisher nor any of its affiliates accepts any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of the information contained herein.

By using the Site or any affiliated social media account, you are indicating your consent and agreement to this disclaimer and our terms of use. Unauthorized reproduction of this newsletter or its contents by photocopy, facsimile or any other means is illegal and punishable by law.

For Full Terms of Use Click HERE. For the Privacy Policy Click HERE.

alphaletter.co (“Alpha”) is a website owned and operated by Substack. Alpha is paid fees by the companies that make investment offerings on this website. Be aware that payment of these fees may put Alpha in a conflict of interest with the investor. By accessing this website or any page thereof, you agree to be bound by the Terms of Use and Privacy Policy, in effect at the time you access this website or any page thereof. The Terms of Use and Privacy Policy may be amended from time to time. Nothing on this website shall constitute an offer to sell, or a solicitation of an offer to buy or subscribe for, any securities to any person in any jurisdiction where such an offer or solicitation is against the law or to anyone to whom it is unlawful to make such offer or solicitation. Alpha is not an underwriter, broker-dealer, Title III crowdfunding portal or a valuation service and does not engage in any activities requiring any such registration. Alpha does not provide advice on investments or structure transactions. Offerings made under Regulation A under the U.S. Securities Act of 1933, as amended (the "Securities Act") are available to U.S. investors who are “accredited investors” as defined by Rule 501 of Regulation D under the Securities Act well as non-accredited investors, who are subject to certain investment limitations as set forth in Regulation A under the Securities Act. In order to invest in Regulation A offerings, investors may be asked to fill out a certification and provide necessary documentation as proof of your income and/or net worth to verify that you are qualified to invest in offerings posted on this website. All securities listed on this site are being offered by, and all information included on this site is the responsibility of, the applicable issuer of such securities. Alpha does not verify the adequacy, accuracy or completeness of any information. Neither Alpha nor any of its officers, directors, agents and employees makes any warranty, express or implied, of any kind whatsoever related to the adequacy, accuracy, valuations of securities or completeness of any information on this site or the use of information on this site. Neither Alpha nor any of its directors, officers, employees, representatives, affiliates or agents shall have any liability whatsoever arising from any error or incompleteness of fact, or lack of care in the preparation of, any of the materials posted on this website. Investing in securities, especially those issued by start-up companies, involves substantial risk. investors should be able to bear the loss of their entire investment and should make their own determination of whether or not to make any investment based on their own independent evaluation and analysis