Last week, bitcoin hit a record high of $64,836. Not long after, it plunged 20%.

But as I keep reminding you, volatility is the price you pay to get rich in crypto.

The life-changing gains on offer don’t come for free – they’re your reward for shouldering gut-churning risk.

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Tom Dyson left a lucrative career at one of the world’s largest investment banks to travel the world and write about finance for regular investors.

In a recent weekly issue of Legacy Inner Circle, he recommended a simple way to protect your assets from inflation.

You can access Legacy Inner Circle today for just $5.

Click here to find out what Tom recently recommended in a Legacy Inner Circle interview.
 

But it’s important to hold bitcoin and stay calm – in spite of its wild price action.

And there are signs that we’ll see less volatility as bitcoin reaches mainstream adoption.

You’ll find out more in your Weekly Pulse video at the top of the page. It’s where I (Chris Lowe) and host Tom Beal break down the single most important market story on our radar for the week.

And if you prefer to read along, we’ve included a transcript of our conversation below.

Regards,

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Chris Lowe
Editor, The Daily Cut and Legacy Inner Circle

Transcript

Tom Beal: So, Chris, you speak with the experts within Legacy Research every week. What is today’s wealth-growth story that we’ll be discussing and breaking down this week?

Chris Lowe: Tom, this week, I really want to talk about something that happened over the weekend – a big drop in the price of bitcoin. It fell about 15% over the weekend.

It was at a high before the Coinbase IPO we talked about last week. It actually fell as much as 20% at one point. In stock market terms, that is the definition of a bear market.

So this week on the Pulse, I thought we’d try to put that volatility in context. And then, I want to show folks watching why our crypto expert, Teeka Tiwari, believes that this isn’t the beginning of another “crypto winter” bear market, like we had in 2018, when we saw the price of bitcoin drop 72%.

So I just thought we could get into that today, and make sure that folks who own bitcoin don’t get nervous and try to panic sell.

Tom: That’s a pertinent topic. And I, too, am a participant, thanks to you, Teeka, and others who have recommended bitcoin. It does have that volatility that Teeka, and you, bring to the awareness of me and the others that follow. It does get people a little scared.

So I’m excited to hear this, how this isn’t anything to freak out over. And what Teeka and the other experts may have in store to help us remain calm and gain the benefits, to grow our wealth in the near future.

Chris: The 20% drop we saw over the weekend really isn’t something to freak out about. Since its March low of last year, bitcoin is up 1246%, even after that drop. This year, it’s up 90%, even after that drop.

Bitcoin is just a very volatile asset. Volatility is just Wall Street speak for having a lot of price swings.

The way Teeka looks at this is really interesting. He says that “Volatility is the price you pay to get rich in crypto.” What he means by that is that a lot of people think, “Oh, it’s free money.” If I invest in bitcoin or another altcoin, I just get free money.

You don’t. The money you earn as a bitcoin investor is payment to shoulder that risk, this kind of volatility.

A lot of folks wouldn’t have it in their portfolio. But I’m willing to take these gut-wrenching churns that we see every so often. And that is internalized as the price you pay for those gains.

Teeka has been hammering on about it. He calls it the price of admission to being a bitcoin millionaire. And I think that is a really important thing to understand. It’s just bitcoin being bitcoin.

In 2018, we saw crypto go down 72%. It didn’t stop bitcoin getting to $60,000-plus. So you just have to accept that crypto and bitcoin are going to be volatile. And if you’re not able to shoulder a 20% loss, you’re in big trouble.

Most people have forgotten that in February, bitcoin actually fell 23%. I had forgotten about it until I went to do the research.

Tom: And you mentioned a term: shouldered loss. Well, in essence, I’m still holding. So I have no loss. It’s just a matter of me remaining calm, and actually reflecting back. Had I listened to Teeka back when it was at this low a year ago, imagine grabbing some at that price and getting the 1000%+ returns that you mentioned, just by seeing the long future.

So whether it’s stocks or cryptocurrencies – bitcoin specifically today – you don’t have a loss until you panic and sell. Just like we saw with stocks, when the whole coronavirus thing occurred, there was a big dip. People who panicked and sold lost.

I don’t know what’s going to happen, but I’m not selling. I saw the recuperation and also the gains.

And so, if you see the long haul, there’s no loss. If you believe what Teeka is saying – and he’s been on point pretty much ever since I’ve tapped in – you’re getting it at a discount.

What’s the saying? Buy when everyone else is selling and sell when everyone else is buying.

Chris: That’s Warren Buffett: Buy when others are fearful and sell when others are greedy.

Look, when you go into the supermarket, and you see a milk carton half off, you tend to buy more. But you’re right. When people see the assets or the investments that they own drop, they often tend to panic.

The second part of what I wanted to get into today, Tom, is really the more fundamental picture. Teeka is on record now as saying that he sees bitcoin at half a million dollars. That’s roughly a 10X gain from here.

The reason he sees that is something we’ve been talking about a lot here at The Weekly Pulse and The Daily Cut, my daily e-letter, and at Legacy Inner Circle, our weekly advisory. It’s that institutional money is now coming into bitcoin.

Bitcoin is now a trillion-dollar asset. The whole crypto market cap – the value of all the coins – is over $2 trillion. So we’re not back in those days when it was retail investors, a very small market and they’re very skittish.

As Teeka has been pointing out to his readers, institutional investors know all about sticking for the long term, buying when others are fearful, buying the dip. These guys are pros. They’re not going to be so easily shaken out of their bitcoin, as some of the early retail or individual investors were.

So Teeka is saying, “Sure, we’re going to have a lot more volatility. We’re going to have a lot more bumps in the road.” But he does not think we’re going back to a situation, like in 2018, where bitcoin dropped 72%, or even in previous years, where it dropped 80%-90%. Teeka says those days are behind us because of the adoption of crypto, and because of that market cap.

It’s very simple. The bigger an asset gets, the less volatile it becomes. We saw that with the dotcom stocks or tech stocks. Amazon.com was down 90% during the dotcom bubble. Apple, which is now a trillion-dollar company, was down 80%.

We don’t see that anymore. That just doesn’t happen because these have now gone into the big leagues. They’re both trillion-dollar market caps, Apple and Amazon. You’re not going to get that volatility because there’s just so much liquidity in those stocks.

It’s really the small-cap stocks or small cryptos that bounce around all over the place. Because if one big investor pulls their money out of a tiny little market cap, it has a huge effect. So it’s actually the size effect that we can expect to benefit us as crypto reaches mainstream adoption.

It’s not guaranteed, but we’re very unlikely to get those really big, gut-wrenching moves.

Tom: Almost a year ago, when bitcoin was around $12,000, Teeka predicted in Legacy Inner Circle that soon, it would be at $60,000 to $70,000.

I’m not the expert, but I know some people who are. And they said $12,000 was a good price. And what you just shared, how Teeka sees it at half a million dollars a coin, that’s 10 times where it is now.

If you can get something for $50,000 that, down the road, will be hundreds of thousands of dollars, how much of those would you want to get?

That also goes back to what Teeka and you share about having the smart strategy of not going all-in on black, or all in on red. Right? So having a smart asset allocation.

But if you are someone who sees that future vision of multiple hundreds of thousands of dollars, and as Teeka has gone on record saying half a million, to get it at $50,000 is quite a steal, at this stage.

Chris: That’s a really good point about asset allocation. Teeka recommends you don’t put more than 10% of your net worth of your portfolio in bitcoin. And he then recommends putting another 2% in the smaller altcoins. So you’re talking about 12% of an overall portfolio.

Now, if you have 10% of your net worth in bitcoin, even if it drops 50%, that’s only a 5% drop of your overall portfolio, because it’s half of 10%.

That is the beauty of asset allocation. If your entire net worth, your entire lifestyle, your life savings is in bitcoin, and it drops 50%… boy, are you going to have some sleepless nights!

But if you have it limited to 10%, as Teeka recommends, sure, that’s not nice. No one’s going to wake up and say, “I’m so glad I’ve lost half my bitcoin net worth.” But it’s volatile and you know, it’s going to come back. It’s not going to be a really big, disastrous, ruinous loss. You’re going to be able to sleep well. And you’re going to be able to leave it alone, like you should, and just focus on the long run.

Tom: I sleep well because prior to crossing paths with and listening to you and Teeka, and the other experts within Legacy Research, I was caught up in the volatility of the ups and downs. And riding that rollercoaster was not fun.

But now, I just trust. Teeka has been right all along. Even when people saw him as the crazy person beating the drum all those years ago, he’s been right all along.

So I just rest easy and follow the guidance that you, Teeka, and the other experts at Legacy Research share. I realize there’s going to be volatility. But that’s the cost of admission to get the gains that are there. No risk, no reward.

So yeah, there are some risks. But if you follow the path that Teeka lays out for us, it looks like a good journey. The ending is going to be good.

I appreciate that insight, Chris. Thank you for bringing this to our attention and helping me and the Weekly Pulse viewers remain calm amidst the volatility… and possibly profit and grow our wealth in the near future.

Chris: You’re welcome, Tom.

Tom: All right. So, if you’re still here, that means you’re not yet part of Legacy Inner Circle. What you’ve heard today is just the tip of the iceberg. Chris has been dealing with Teeka for years on the cryptocurrency conversation and the bitcoin conversation.

If you’ve been plugged in, you do rest easy. And you actually see the dips as an opportunity to get more gains because you know where it’s going, based on Teeka and the team within Legacy Research’s recommendation.

So, Chris, for those who aren’t yet inside Legacy Inner Circle, now is a great time to take a look at what we have inside Legacy Inner Circle, join with a special offer that we have, and meet us in the members’ area.

Chris: Tom, I think it boils down to two things.

First, there are two things that are key ingredients of success. I think, as an investor, first, you have to have good ideas. If you don’t have good ideas, you’re toast. You know, if you’re betting on all the wrong things all the time, it’s not going to work out.

We put bitcoin on Legacy Inner Circle readers’ radars in July 2016. It was trading around $650 – $660 a coin. So that is, I think, a 100X return. It’s potentially life-changing, if you have a stake in that.

We’ve written about bitcoin, I would say, two or three dozen times since then, if not more.

The other part of it is getting people off their couches, as it were, getting them to actually make those investments and take action.

And then make sure that when we hit times like this, we’re there on hand to say, “Remember the long term. Remember why we’re in this. Don’t panic.”

And that kind of handholding is very, very useful. I have a friend who recently bought two bitcoin. I think he bought them around $20,000. They’re now around $60,000. So now, he’s got $120,000 of bitcoin.

He’s watching the price all the time. And he’s texting me, saying, “Oh, it’s a bad day. I’m having a terrible day. How’s my bitcoin?” And I say, “You know, you’re going to give yourself a heart attack doing that.”

What we do at Legacy Inner Circle is we get those pros – Teeka Tiwari was the youngest vice president ever of Shearson Lehman, when he was 19 years old. He went on to run his own hedge fund. He’s gone bankrupt. He’s lost all his money. And he’s made small fortunes. He has been through the wringer. And he imparts that experience. You can’t just get that experience by yourself

You need somebody like Teeka, who’s been there, who’s been through the highs and the lows. It’s important that he doesn’t hide those lows.

And that’s what we can offer, above and beyond. We’re there on hand to make sure you get the maximum benefits out of those big ideas, and you actually act on them, and then stick with them for the long-term. Because that’s the only way to make them work.

Tom: 100%. And for those who are watching, we have a special deal for you as a Weekly Pulse viewer.

When you click the link below, you’re going to learn more about Legacy Inner Circle. You’re going to see the special offer that we have, that gives you literally an irresistible offer, where you have everything to gain and nothing to lose.

There’s nothing hidden. Once you get inside there, you’re going to see all of the conversations that Chris had with the Legacy Research experts, Teeka, and all the others.

Chris has a unique perspective. He looks into all the different model portfolios. So it’s not just one. This is not simply just crypto. It’s everything from the Legacy Research experts.

So go take a look, click the link, watch the video, take a serious look at the special offer we have. Literally, you have everything to gain, nothing to lose. Join and you’ll see us inside the members’ area on your computer or laptop.

And we also have an iOS and an Android app available. So on your smartphone, you can access all of this as well.

So click the link, go learn more. We look forward to seeing you inside the members’ area.

Not yet a Legacy Inner Circle member? Join here.