News broke today that the Tesla CEO converted $1.5 billion of the carmaker’s $19 billion cash reserve to bitcoin (BTC).
Musk says Tesla will also accept bitcoin as payment for its electric cars.
And as of this writing, bitcoin has surged as much as 29% today… to a record high of $43,900… on the news.
It’s the clearest signal yet that we’re headed for the mother of all rallies… as bitcoin goes from fringe to mainstream financial asset.
So if you’ve so far ignored my long-running campaign to get you to buy bitcoin, now is the time to act. (More on how to go about that at the end of today’s insight.)
If you’ve just discovered us in your inbox, you recently signed up to one of the 19 investment advisories we publish at Legacy Research.
It’s the publisher behind Teeka Tiwari, Jeff Brown, Nick Giambruno, Dave Forest, Jason Bodner, Dan Denning, Tom Dyson, Doug Casey, and Bill Bonner.
The Cut is the premium e-letter we created for all paid-up Legacy subscribers so you never miss a big idea from our team.
In 2020, our Legacy analysts gave readers like you the chance to make more than 90 different triple-digit gains. Open recommendations across our model portfolios are up as much as 10,069%… 18,944%… even 20,713%.
And as Teeka, Jeff, and Nick have all been pounding the table on… one of the biggest opportunities ahead is in bitcoin.
As I’ve been showing you, bitcoin is the ultimate “hard asset.”
An unalterable protocol governs new issuance of bitcoin. No matter how high bitcoin’s price soars, you can’t increase supply past its fixed limit.
Instead, the opposite happens. Over time, the rate of new issuance falls… then stops for good when we reach the hard cap of 21 million total bitcoin.
And it’s an iron law of markets that when demand rises… and supply can’t expand to match it… prices go up.
The Casey Report is all about finding the world’s most lucrative “asymmetric investments.”
With an asymmetric investment, the upside potential greatly outweighs the downside risk. These kinds of investments are typically found in market megatrends in their early stages.
Nick has given our Casey Report folks the chance to make a 500% gain on bitcoin, which he recommended in June 2018.
And he’s been writing about corporations adopting bitcoin as a store of value since last August. That’s when software maker MicroStrategy (MSTR) became the first major corporation to plug its balance sheet into bitcoin.
Here’s the forecast Nick made in the November issue (Casey Report subscribers can catch up in full here)…
Corporate America can simply no longer afford to ignore bitcoin.
Remember, governments are destroying their currencies at breakneck speed. Following the outbreak of the coronavirus hysteria, governments around the world have thrown out the last semblance of fiscal and monetary sanity.
In a matter of days, earlier this year, central banks have created more currency units out of thin air than they have for most of their existence.
It just took MicroStrategy to break the taboo. Now there is an accelerating trend in motion.
He even singled out Tesla as a likely candidate to make a big move into bitcoin…
Elon Musk, the CEO of Tesla, has posted some favorable comments about bitcoin on Twitter. He also seems to understand the dangers of rampant central bank money-printing.
That’s hard to predict exactly.
But what’s blindingly obvious is Tesla and MicroStrategy are not the only corporations with billions in U.S. dollar cash that need protection from inflation.
Nick reckons the following chart should give us a clue to who the next bitcoin adopter will be…
You’re looking at the U.S. corporations with the largest cash piles. Nick says at least three of the top four are a great fit…
Amazon (AMZN) is sitting on over $70 billion in cash. Not only could Amazon use bitcoin as a cash reserve asset, but also it could integrate it into its business. Imagine being able to buy bitcoin… or pay for your shopping in bitcoin… on Amazon. It’s likely coming soon.
At more than $138 billion, Microsoft (MSFT) has one of the largest stashes of cash in the world. Microsoft is also involved in open-source software development, and bitcoin is one of the most exciting open-source projects.
Apple (AAPL) is sitting on so much cash, it may decide to allocate a small portion to bitcoin. It could also integrate bitcoin into Apple Pay and other aspects of its ecosystem.
These are just three out of the 580 companies with more than $1 billion in cash sitting on their balance sheets.
I’m talking about a chain reaction of positive catalysts.
The higher the bitcoin price goes, the more incentive other CEOs and CFOs (chief financial officers) will have to diversify their cash reserves into bitcoin.
The more bitcoin these corporations buy… the higher the price will go. This will encourage other corporations to follow suit… or be forced to buy at higher prices.
This will push up the price of bitcoin even more… continuing the circle.
Bitcoin is currently trading at $43,900. That may seem like a lot. But it’s going much higher from here as corporations pile in. So consider taking even a small stake in bitcoin to profit from the coming price squeeze.
For more on how to buy your first bitcoin, check out our free special report here.
And keep an eye out for more from Nick tomorrow on why more corporations will pile into bitcoin… and why that means now is the time to invest.
Regards,
Chris Lowe
February 8, 2021
Bray, Ireland