It’s Friday… That means it’s mailbag day at The Daily Cut.
This is the premium e-letter we created for all paid-up Legacy Research readers.
It’s where you’ll find all the latest on the big moneymaking ideas Jeff Brown, Teeka Tiwari, and Dave Forest are tracking for their readers. And our weekly mailbag edition is where they answer your questions about these ideas.
One of the biggest ideas on our radar right now is the transition from fossil fuels to green energy.
Bloomberg estimates that governments and corporations will spend as much as $173 trillion on new energy supplies and infrastructure to make this transition.
And as Jeff has been showing his readers, a major part of that transition involves replacing gas-guzzlers with electric vehicles (EVs).
It’s one of the big profit trends he’s been tracking since he joined us back in 2015.
But one reader sees an obstacle in the way…
Reader question: I don’t get this rush to EVs. Electricity isn’t magically created. And we aren’t close to zero emissions yet.
California is already suffering rolling brownouts because of our renewable energy policies. We keep being told to turn off all we can between 4 p.m. and 9 p.m. because those are “peak times” and the system can’t handle it. Your thoughts?
– Ken K.
Jeff’s response: Hi, Ken. You’re right. Most people don’t grasp where the electricity for EVs comes from. Whenever I meet someone who’s crazy about EVs, or is virtue signaling about how environmentally sensitive they are, I ask them, “How was the electricity you use to fuel your car produced?”
The answer is almost always carbon-based fuel.
The U.S. power grid – and many others around the globe – isn’t built to support a world in which half the cars on the roads are EVs. The system needs an upgrade to support that transition.
Right now, most of the energy for EVs comes from natural gas, coal, nuclear, or hydroelectric dams that harm freshwater ecosystems. And the lithium-ion rechargeable batteries that power EVs are made almost entirely with energy from coal-based power plants in China.
EVs aren’t as “green” as we’re led to believe. You need to drive them for at least 40,000-60,000 miles before you offset the carbon involved in making them.
But I don’t think we need to worry about EVs overwhelming our electric grid. The shift to EVs will happen over the next couple of decades. That will give us time to build out clean electricity infrastructure to support the new EVs hitting the road.
Next up, a question about bitcoin “mining” for colleague and world-renowned crypto investing expert Teeka Tiwari.
As I’ve been showing you, bitcoin (BTC) and other cryptos use a lot of power.
That’s because in crypto networks, the folks who verify transactions – aka miners – have to first solve complex math puzzles that require lots of processing power to answer.
A study by researchers at Cambridge University in Britain showed bitcoin uses about 121 terawatt-hours a year. That’s more than the amount of power Argentina – a country of about 45 million people – uses every year.
And one of Teeka’s readers wonders whether we’ll have enough power to support the mass adoption of crypto…
Reader question: It’s my understanding crypto mining takes substantial electrical power. Will adequate power become an issue as blockchain processes become mainstream?
– Robert M.
Teeka’s response: Thank you for writing in, Robert.
I’ve been hearing this question for many years. A lot of people are worried the computers powering blockchains will use so much energy, the network will be unsustainable.
First, the amount of energy used to sustain the traditional banking system – from the buildings, to the computers, to the people, to the infrastructure – is massive.
The banking system’s energy consumption is estimated to be almost double that of bitcoin.
Also, we’re seeing a major shift with the adoption of proof-of-stake consensus algorithms. They operate using a fraction of the energy bitcoin’s proof-of-work algorithm uses. [These algorithms are how folks verify crypto transactions.]
Some crypto mining requires a substantial amount of energy. But there are already alternatives and solutions dealing with this problem.
If you’re not already following Teeka’s research, you’re missing out.
His Palm Beach Confidential was the first major newsletter to focus solely on crypto.
Since then, he’s given his readers the chance to make gains of 16,286%… 29,715%… 36,765%… and even 50,191% on crypto.
So as you can imagine, our mailbag is always full of thank-you notes for Teeka…
Reader comment: Thank you for your recommendation to buy bitcoin mining stocks. At first, I thought it was a wild idea. But the logic made sense. Besides, you’ve been right on these calls so many times.
I invested a small amount of my savings for my daughter’s university funds. Lo and behold, this small amount will now pay for two years of her tuition. Teeka, thank you very much.
– Peter W.
Reader comment: Teeka, you’re a godsend! I have all your newsletters, and I enjoy them so much. I am so grateful to have you on this crypto journey. Your expertise and heart give me so much confidence. Thank you for who you are!
– Joshua D.
Reader comment: I’ve been a Palm Beach Infinity member for years. I’m a big fan of Teeka’s Palm Beach Letter in particular.
Thank you for doing what you do. My net worth has increased 5-6x since I started following you.
– Rob B.
If you haven’t already, make sure to catch up on the next big crypto opportunity on Teeka’s radar, “Tech Royalties.” They’re a tiny subsector of crypto coins that pay you to hold them.
On Wednesday, Teeka hosted a livestream to share all the details on the opportunity he’s discovered in these coins. He says it could hand you 10 lifetimes of S&P 500 gains over the next year. During his event, he even gave away the name of his No. 1 pick to everyone who attended.
If you didn’t have a chance to watch yet, catch the free replay right here before our publisher takes it down.
That’s all for this week.
If you’d like to put a question to any of our Legacy experts, be sure to get in touch at [email protected].
Have a great weekend.
November 5, 2021