Welcome to the weekly mailbag edition of The Daily Cut.
Later in today’s dispatch, tech expert Jeff Brown’s biotech research led him to a shocking discovery about his personal health.
But first, let’s turn our attention to the big news about bitcoin.
The world’s first cryptocurrency is on a rampage. It’s up 157% in the last 11 months alone. Since its March low, it’s up 352%.
And at $18,570 at this writing, it’s closing in on its all-time high of $20,089 from December 2017.
Here at the Cut, we first urged you to add some bitcoin to your portfolio back in September 2018. It was trading for $6,900 at the time.
Bitcoin’s up 169% since then. So if you’re a longtime reader, I hope you took action and added some to your portfolio.
But if you didn’t, don’t worry. As I showed you on Monday, there are more gains to come as bitcoin goes from a fringe to a mainstream asset.
A lot of folks still have concerns about the crypto, though.
That’s why we’re kicking off today’s dispatch with a question for colleague and world-renowned crypto investing expert Teeka Tiwari…
Reader question: There were only supposed to be 21 million bitcoin ever produced, and 6 million were lost forever. What does this mean for bitcoin?
– Darrell C.
Teeka’s answer: Hi Darrell. It’s a great question. Those 6 million bitcoin are lost in the sense that people lost their private keys.
To send bitcoin from a wallet, you’re required to have a private key. If you lose access to the private key, there’s no way to access the wallet.
Investors may have stored their private keys on computers that were damaged or crashed. As a result, those private keys are no longer recoverable.
We can estimate that there are 6 million “lost” bitcoin because the bitcoin blockchain – the distributed digital ledger that records all transactions – lets us see that this number of bitcoin have been dormant for a long time.
Researchers don’t expect those 6 million bitcoin to reenter circulation. That’s not a problem, though. That will make the total remaining supply more like 15 million. And it will make bitcoin even scarcer – setting up the bitcoin price for even more massive gains as demand grows.
Next up, a related question for chief analyst at our Casey Report advisory, Nick Giambruno.
Like Teeka, Nick recommends his readers own bitcoin as a way to escape inflation in government-issued currencies.
Because no more than 21 million bitcoin will ever exist, the currency is inflation-proof.
But one reader has a concern about how big a player China is when it comes to bitcoin “mining”…
Reader question: Hello, Nick. I have read that China hosts about half of the centers where bitcoin and cryptos are mined. What are the implications if there’s economic/geopolitical warfare with China?
More specifically, what would that mean for bitcoin? Is there a risk that the Chinese government could change the rules that regulate bitcoin, maybe by coercing miners to make changes?
– Eric D.
Nick’sanswer: It is true that, as of today, bitcoin miners in China produce a lot of the computing power that goes into securing the network.
I wouldn’t be too worried about the situation, though. It is rapidly changing and decentralizing around the world. You see, bitcoin mining consumes an enormous amount of electricity. Mining is profitable only for those who can secure a reliable source of some of the cheapest energy in the world.
There are many imminent innovations and developments in the space, and I’ll be covering them – and how you can profit – in the upcoming issue of The Casey Report. If you’re not yet a subscriber, you can find out how to join here.
That’s not the only threat from China that’s been on your minds. As the feds keep cranking the digital money press, one reader wants to know whether Chinese currency is likely to topple the U.S. dollar.
On hand with an answer is Bonner-Denning Letter coauthor Dan Denning.
Reader question: I don’t understand why there isn’t more attention paid to the Chinese currency. The British pound used to be the standard until the U.S. dollar, right? Now, America is in decline, and China is on the upswing. So why won’t China’s currency rise as the dollar declines?
– Trey A.
Dan’s answer: That’s a great question. For years, many people have claimed China’s currency is undervalued and should appreciate.
But China’s currency, the renminbi, is not freely convertible on international markets. China’s central bank, the People’s Bank of China, controls the renminbi’s value with what it calls a “managed floating exchange rate.” The currency is “pegged” to the U.S. dollar within a certain range the PBOC sets.
The reason for this is that China, especially after it entered the World Trade Organization in 2001, wanted to build GDP growth (and foreign exchange reserves) on the back of its exports of manufactured goods.
It could do that by keeping its currency “cheap” compared to the dollar, via the peg. That meant Chinese exports would be cheap, in dollar terms, anywhere people spent dollars.
In a floating-exchange-rate world, where the marketplace determines the value of a currency, factors that affect a currency’s exchange rate include the issuing government’s credit rating, the interest rate available on bonds denominated in that currency, and a country’s “balance of trade” (the value of its exports versus its imports).
But none of that matters until and if China unpegs from the dollar and lets its currency float. And there’s no clear sign that’s imminent.
Long story short, there is no obvious successor to the U.S. dollar as the world reserve currency.
Wrapping up today’s mailbag, news from Legacy tech expert Jeff Brown.
As regular readers know, since Jeff joined the Legacy team in 2015, he’s been helping his subscribers make outsized gains from bleeding-edge tech stocks. For example, he’s given them the chance to close out a gain of 259% on DocuSign (DOCU)… a gain of 278% on Advanced Micro Devices (AMD)… and even a gain of 332% on CRISPR Therapeutics (CRSP).
And one of the profit opportunities he’s most excited about right now is the rise of precision medicine.
Thanks to a suite of new technologies, we can now identify health problems we otherwise wouldn’t know we had.
Jeff’s not just doing research from behind a desk.
He recently signed up for a battery of medical tests at Health Nucleus, a precision-medicine center in La Jolla, California.
The Health Nucleus 100+ program cost Jeff $20,000. According to the Health Nucleus website, here’s what it entails…
A comprehensive data-driven exam that includes whole body and brain MRI, coronary calcium scoring, whole genome sequencing, body composition, and advanced blood biomarker analysis, all of which can lead to pre-symptomatic diagnosis of health risks.
The tests diagnosed Jeff with prostate cancer.
The cancer might not have been detected for years, spreading slowly… and fatally… if Jeff hadn’t put himself through this state-of-the-art health assessment.
Fortunately, doctors found the cancer early. And Jeff’s outlook is optimistic. Jeff…
It’s disheartening to know that there will be a raft of tests, biopsies, blood tests, and hospital visits to follow. But it is also an empowering feeling, knowing that there are positive actions to create a better outcome.
Since Jeff shared his experience, lots of his readers have been in touch to wish him well…
Thank you for sharing in depth your personal research, so your subscribers can benefit from the knowledge you gain. I have no doubt cancer doesn’t stand a chance with you. I wish you happiness and wholeness in the many years to come. Blessings.
– Melissa W.
You could have kept your results private. If you had, that would be completely understandable. Instead, you had the courage to be open about your results, which in turn can benefit your readers. For that I commend you. I wish you all the best for a speedy and full recovery.
– Paul R.
We appreciate your sharing of your personal story and, in particular, your mentioning the need to take control of your health. Doctors are conditioned to treat patients like we are monolithic beings and forget that we all have our own stories. We wish you a strong and vibrant journey towards your complete recovery.
– Tim K.
Dear Jeff, thank you for sharing your very personal journey at Health Nucleus with us. This is just a note wishing you continued optimism, courage, and discipline in recovering – and more power to your wonderful health habits. Thank you again for your professionalism, as I for one could identify no drop-off in your outstanding service. Very much appreciated and admirable.
– Yogesh M.
You’ve opened my eyes to this topic. I’ve always been health-conscious and a decent steward of the body God gave me. Like you, my family needs me, and your bleeding-edge info about Health Nucleus is priceless. After all, what good is wealth without health?
– Nader I.
I first heard you on a Glenn Beck podcast last year. I had a feeling you were someone I could trust to provide a high-growth strategy for a part of my portfolio. I have been a Brownstone Unlimited subscriber now for six months or so. That feeling hasn’t changed.
I appreciate your passion, research, and most of all, your humility. And thank you for sharing your health story, as I am sure that was not easy to do. I am praying for a full recovery with minimal disruption. May God bless you and your family.
– Dave L.
That’s all we have time for this week. If you’d like to put your own question to the Legacy experts, get in touch at [email protected].
Have a great weekend.
November 20, 2020