by Owen Sullivan
On Apr 16, 2018
One of the key skills for prepping for crisis is knowing the difference between a legitimate threat and a bowlful of hot air. James Altucher knows the difference… and he’s discovered how to make money from it.
by Owen Sullivan
On Feb 5, 2018
You might know Jim Rickards as the New York Times bestselling author of Currency Wars and The Death of Money. I know him as the man to turn to when an unsolvable problem needs to be solved. Today, I asked Jim to talk to you about how to invest when crisis could strike at any moment.
Dear Money & Crisis Reader,
You’ve probably heard this word before.
You may even know that it’s the underlying technology behind bitcoin.
But few folks understand what blockchain actually is or why it’s such a big deal. In a way, that’s a big part of why cryptocurrency is so exciting for everyone right now.
It’s like the Wild West. There’s opportunity out there. And a person could make themselves a fine sum of money off it…. or they might end up losing it all to bandits and conmen.
Now, bitcoin nerds are usually pretty terrible at explaining what blockchain actually is. Which makes it hard to see why anyone thinks it’s the future of currency.
So today, I’m going to break it down for you into the simplest terms and show you just how world-changing this tech could be.
After that, economist Jim Rickards is going to reveal a new crypto that could blow bitcoin and even the U.S. dollar out of the water.
Blockchain Does What Your Bank Won’t
The easiest way to explain blockchain is to compare it to your bank.
You see, your bank keeps track of your money in a ledger. This is a record of every transaction you make — all the money coming in and going out.
Now modern ledgers are not dusty old hand-written tombs. They’re stored on computers. But there is still only one centralized ledger for your account.
Which means, if the bank wants to change what it says in that ledger, there’s nothing you can really do about it. In the same way, if the ledger gets hacked, that hacker can change what it says in your ledger — effectively “deleting” all your money.
Blockchain has what is called a “distributed” ledger. And it’s exactly what it sounds like.
Instead of a single centralized ledger, your transactions are distributed to millions of identical ledgers. With no central ledger, blockchain is harder to hack since the info exists simultaneously in millions of places.
And that’s what makes blockchain so revolutionary. Your money isn’t tied to any bank, or government, or outside system.
To see the blockchain’s value in action, we only need look at what’s going on in Venezuela right now.
The Bolivar, Venezuela’s currency, has been so devalued by inflation that a months’ wages will buy two liters of milk, four cans of tuna, and a loaf of bread.
Those who try and leave the country with gold are being stopped and having their precious metals confiscated. But as one fleeing Venezuelan put it, “they can’t confiscate your bitcoin.”
Jim Rickards is a big believer in the blockchain. But he says bitcoin is the wrong horse to bet on in this race. He reveals the dark horse nobody’s talking about in today’s issue of Money & Crisis.
All the best,
Editor, Money & Crisis
P.S. Jim was one of the few folks who predicted Trump’s win, Brexit, AND the 2008 financial crisis. To find out how he does it, grab a free copy of his new book The Road to Ruin: The Global Elites’ Secret Plan for the Next Financial Crisis. In it, Jim reveals the powerful strategies you can use to protect your money and your family from the next crisis. Claim your FREE copy now.
The Cryptocurrency to Watch
My readers know I was never a bitcoin proponent.
Sure, it made some people a lot of money, but look at it now. From a high around $20,000 at the end of 2017, today it trades at around $3,450.
I’ve said for years that bitcoin is a fraud, a Ponzi, and a bubble all at the same time. I based this on analysis of price activity, certain other technical analyses, and some anecdotal evidence.
What are my critics saying now?
But I’ve also stated my belief in blockchain technology, which is the technology behind bitcoin and other cryptocurrencies. There’s great promise here.
And despite what some critics may have claimed, I’m not some technophobe who doesn’t understand the technology underlying cryptos.
I know it very well. I’ve been studying cryptos since before many of their current owners even heard of bitcoin. I actually worked with the intelligence community to counter ISIS’s use of cryptocurrencies to bypass the international money system.
And the hype simply ran far ahead of reality. This is reflected in bitcoin’s meteoric rise and fall. But again, I also believe blockchain technology is for real and has great potential. So just because I wasn’t a bitcoin cheerleader doesn’t mean I’m opposed to all blockchain-based cryptos.
But I want to talk a little more about how gold and blockchain technology could lead the world away from the dollar-based system…
A Golden Crypto
Despite everything you may hear in the mainstream media, gold is as relevant as ever.
Russia and China, for example, have been accumulating thousands of tons of physical gold bullion for the last 10 years. That’s not news, of course.
What is news is that both countries have made moves toward the end game of a gold-backed currency that completely bypasses the U.S. dollar payments system.
These moves are both geopolitical and monetary.
In fact, they tried the gold-based attack on the U.S. dollar that I devised for the Pentagon in their first-ever financial war game in 2009. I described that war game in detail in my 2011 book, Currency Wars.
It looks like the Russians and Chinese read my book!
Russia, China, and their BRICS allies (BRICS stands for Brazil, Russia, India, China and South Africa) have moved toward their own gold trading system (bypassing London and New York).
From there it’s a small step toward a new gold-backed digital currency using distributed ledger technology and military-grade encryption. Distributed ledger technology is another term for the blockchain technology I discussed above.
But unlike cryptocurrencies like bitcoin, this digital system would be backed by gold.
Once that system is up and running, the BRICS can trade and settle oil, commodities, weapons, manufactured goods and the overall balance of payments without using dollars or Western financial intermediaries at all.
And from there, a global loss of confidence in the dollar is not far behind. The big winner in all of this will be gold.
Editor’s note: For more of Jim’s insights into developing financial crises, check out his new bookThe Road to Ruin: The Global Elites’ Secret Plan for the Next Financial Crisis.Right now, it’s free to readers of Money & Crisis. Click here to get a hardback copy delivered straight to your home.