Legacy Research Group

2021 could be the last year anyone buys a newly mined bitcoin.

That’s according to one of the world’s leading crypto experts, Teeka Tiwari.

It has to do with an event he calls the “Super Halving.”

And Teeka says it could send bitcoin’s price rocketing above $100,000.

The mainstream media has completely failed to notice this game-changing shift in the crypto market…

It’s a shift that will cause a supply crunch that Teeka believes will kickstart bitcoin’s next big bull run…

It’s all in your Weekly Pulse video. It’s where I (Chris Lowe) and host Tom Beal break down the single most important market story on our radar for the week.

Regards,

Chris Lowe
Editor, The Daily Cut and Legacy Inner Circle

P.S. If you prefer to read along, we’ve included a transcript of our conversation below.

Transcript

Tom Beal: Teeka Tiwari has discovered a pattern that he is predicting will bring bitcoin to hundreds of thousands of dollars per coin in the next five years.

My name is Tom Beal, host of The Weekly Pulse, where we break down the biggest wealth-growth story of the week. I’m here today with the editor of Legacy Inner Circle, Chris Lowe. Chris, for this story, where do we begin?

Chris Lowe: Tom, we’re continuing the topic that we began last week, which is incredible volatility in the crypto market. We’ve seen bitcoin, the first and most famous crypto, come down 42% from its high. Now, it’s bounced around a lot along the way, but where we are today is 42% beneath that high.

A lot of folks watching this will own bitcoin. Maybe some folks will have even bought bitcoin on our recommendation or on the recommendation of our colleague Teeka Tiwari, or Nick Giambruno, another analyst at Legacy, who has been recommending bitcoin.

Last week in The Weekly Pulse, we talked a lot about bitcoin volatility. And the upshot was: don’t worry about it.

This is bitcoin being bitcoin. We’ve seen bitcoin go down 84% during crypto winter. That was the big bear market in 2017/2018.

And we’ve seen two dips of more than 90%, two dips of more than 80%. It goes on. Basically, the answer to the fear of volatility is to just sit there and do nothing; focus on the long-term picture.

Today, I thought we would look at that long-term picture and at the fundamentals behind bitcoin, and just try to fade out all the volatility.

In particular, I want to focus on something that Teeka calls the “Super Halving.” The way I think of this, Tom, is as a massive supply shock coming to bitcoin. And if Teeka is right, it’s going to kick off the next leg of the bitcoin rally.

Tom: Fortunately, I’m in Legacy Inner Circle. I don’t have any fear. Prior to that, I was doing the opposite of what I now do. I trust Teeka’s insights and the other experts within Legacy Research, because they and the team are doing the in-depth research. So I don’t have any fear.

I used to be worried. Is it going to go to zero? No. As a matter of fact, I saw Teeka predict that within five years, it’s going to be worth multiple hundreds of thousands of dollars.

Obviously, we don’t have a crystal ball, but he’s been on-point for pretty much all the predictions he’s made. I’m excited to hear more about the Super Halving. When I heard it, it made even more sense as to why he’s predicting such large gains in the upcoming years.

Chris: I think the key to understanding the Super Halving is to understand that halvings are built into the code of many cryptocurrencies. With bitcoin, the halving essentially cuts the supply of new bitcoin in half.

Now, we don’t have to get into all the details of how new bitcoins come into existence. But basically, there are folks on the network called miners. They’re like the auditors of the network; they’re the ones that lend this incredible computing power that secures the network.

Essentially, what they do is they look at each group of transactions and they say, “This is the real deal. Let’s add it to the ledger, to the blockchain.” They use a lot of computing power to secure the network and make sure each new transaction is the real deal.

That’s how there are no bitcoin forgeries. Nobody can add anything onto this blockchain, this ledger of transactions, that isn’t bona fide.

Now, the typical halvings are baked into the code. Every four years, the reward that miners earn for that process of doing that auditing gets cut in half. That’s built into the bitcoin code. And it’s very easy to see coming because it’s on a pre-agreed schedule. Other cryptos have their own types of halvings.

Halvings have been very profitable events simply because they cut the supply of bitcoin. And as you know, when supply goes down or stays the same, and demand goes up, prices go up. That’s Economics 101.

The super halving is different. Typically, when miners earn these rewards for auditing the bitcoin network, they sell them. These are businesses. They’re making a profit. When they get those new bitcoins as a reward, they sell them onto the market.

These bitcoin mining companies are getting so big, they’re going public. They’re accessing capital in the markets, just like a regular company would.

Now, in the early days of bitcoin and cryptocurrency, there was all this stigma around crypto. Is it a Ponzi scheme? Is it a fraud? Is it for criminals? There was all this fear, uncertainty, and doubt – crypto folks call it FUD – around crypto. It was difficult for a crypto mining company to get funding in a way that a normal company would. So they were forced to sell the bitcoins they were earning and put it back into the market.

Now, 2021 has really changed that. Crypto has gone mainstream. Bitcoin mining companies have gone public. You can buy their shares on an exchange. This means that they don’t need to sell those bitcoins anymore because they can now access funding, like a regular company, to cover their costs.

You’ve probably heard, Tom, that Tesla has bought over a billion dollars’ worth of bitcoin and put it on its balance sheet. Another company called MicroStrategy, a software company, also started to convert its balance sheet into bitcoin. They’re holding bitcoins on their balance sheet and watching them grow in value over time.

Teeka believes that is going to happen to the mining business. Now that they can cover their costs by raising capital in the markets, the bitcoin miners are not going to need to sell their bitcoin anymore. So they’re going to pull back, hold them on their balance sheet. This is going to cause a supply crunch.

Teeka is coming out with a big prediction. He’s saying that this year will be the last time anyone buys a freshly mined bitcoin. From now on, the miners are going to say, “We don’t need to cover our costs by selling bitcoin. We believe bitcoin is going to be worth many multiples of what it’s worth today, regardless of all this volatility we’ve seen. We’re going to sit with it on our balance sheet.”

I’m going to put up a chart that really shows what’s happening. It’s of the net change in miners’ bitcoin holdings.

On the left side of the chart, going back to February of this year, you can see that bitcoin miners, in aggregate, were selling thousands of coins into the market on a daily basis. They were earning these new bitcoins and selling them.

Around April, they started to hold those bitcoins. Thousands of them not being sold into the market.

Teeka thinks this is going to continue. What we’re going to see is a total regime change in the crypto market, where bitcoin miners are not going to be selling those new bitcoin. It’s going to cause a supply crunch. And that is very good news for prices.

Tom: That has me excited, as someone who owns some bitcoin. I see what Teeka sees and what you just explained to me and the viewers here, which is, like you said, Economics 101, supply and demand.

If the miners who used to sell it now keep it, that takes away the inventory. There’s going to be much less of that transacting, which means supply is lower. Demand will stay the same, if not grow, which means prices grow. I totally see it. And I’m excited to hear it from Teeka and from you.

I’m even more excited now that there is this little dip, this hiccup. It’s kind of a predictor to what we saw in last week’s chart, where when the biggest dips occurred, shortly thereafter were the biggest gains.

These are exciting times, if you’re here with us. For those that aren’t with us, they can be fearful and uncertain and have that doubt. But I’m thankful that you’re bringing this information to me and the viewers, Chris, because it gives us that certainty that we’re in the right spot at the right time.

Chris: I think what’s really important for folks who are watching this to understand is that there are very, very few – I can’t think of a single other asset that has such a predictable supply.

If you break down the whole game of investing, it’s about supply and demand. If demand exceeds supply, prices go up. If supply exceeds demand, prices go down. That’s a very simple overview.

A company can issue new shares whenever it wants to, so you’re never really sure what the supply is. You can have a good guess about demand, but supply is a very difficult thing to figure out.

It’s the same with commodities, even gold. If the gold price goes up – it’s around $1,800 now – if it goes up to $8,000 an ounce, you can bet your bottom dollar that a bunch of entrepreneurs are going to raise money, mine for more gold, and increase the supply. That happens across all assets.

Bitcoin is very different because the supply is on this determined schedule. It’s built into the code. You can set your watch by it. We know exactly what’s going to happen. It’s going to halve every four years until – 2140, I think – the last bitcoin gets mined. And then, there’s going to be 21 million bitcoins, and that’s the end of it.

Teeka is saying watch what happens in 2021. We’ve seen that chart of the miners already starting to hold onto their bitcoin instead of selling them. Teeka is saying, “That’s going to become the norm.”

And then, we can focus on the demand side of the picture. We don’t have to worry about supply, because that becomes quite easy, relative to other investments, to figure out.

I think this is very important to understand. I haven’t seen it anywhere in the mainstream press. I’ve seen all sorts of hand-wringing and gnashing of teeth about bitcoin – what you see every single time there’s a big drop in the bitcoin market. The naysayers come out and say, “It’s all going to zero” and “It’s all for criminals." And “It’s never been any use.” We see it over and over again.

What I’d like folks to do today is try to fade out some of that mainstream news, fade out some of that price action, which is over the short term. And just have a think about where bitcoin is going to be in five or ten years’ time… and what is going to happen if Teeka is right and the miners, who have been steadily selling new bitcoin into the market, stop doing that and start holding it on their balance sheets, because frankly, they just don’t need to sell them anymore.

And you know something? Their shareholders won’t like it if they do sell it. They have a duty to their shareholders, like every public company, to make that share price go up. The management of a company have a public duty to act in the best interests of their shareholders. And they can be fired by the board. Shareholder activists can get rid of them if they make big mistakes.

The boards of these mining companies, the executives of these mining companies, know that. So they’re going to be acting in the interest of their shareholders. They’re going to do what Tesla and MicroStrategy do, and other companies like Square, the online payments processor. They’re going to put bitcoin on their balance sheet. And they’re going to hold it there and wait for higher prices ahead.

Because these guys are in the industry. They believe in bitcoin. They’re there for a reason. They understand where it’s going. They see it becoming more mainstream, as Teeka has been saying since 2016, when he first started recommending bitcoin.

I think this is a very big supply crunch. I think it’s something people are missing out in the mainstream. And I really hope it’s on our readers’ radars because it is very bullish.

Tom: It’s funny, Chris, because I have viewers that reach out to me and say, “Hey, what’s Teeka saying now?” Because they remember back in November 2020, when Teeka said, “Look, bitcoin’s at $12,000 now. I predict it will be at $60,000 soon.” Well, that prediction came true.

And even now, after this dip, if you followed his advice back in November of last year and got in at $12,000, you’re 3X your returns right now.

Well, he’s predicting that in five years, it will be at multiple hundreds of thousands of dollars.

It’s similar to how my friend told me, “Man, I wish I had listened to what you shared with Chris Lowe and what Teeka shared in that Legacy Inner Circle Weekly Pulse. I wish I’d bought more at $12,000.”

Well, fast forward a few years, when it’s in the multiple hundreds of thousands… “Why didn’t I get more at that time?”

It’s a matter of not letting your emotions play with you now and thinking more of that long term. So far, Teeka has been spot on. Bitcoin’s one of the many examples of that. I’m excited.

I’m thankful to be in this loop with you and Teeka and the other Legacy Research experts. And I thank you for bringing your wisdom to us here in The Weekly Pulse.

Anything else to add to wrap up?

Chris: Tom, I’m going to repeat myself here, but I keep thinking of Warren Buffett’s advice. It’s something I’ve thought about a lot in the 20 years since I’ve been writing about and observing markets. “Buy when others are fearful and sell when they’re greedy.”

Right now, there’s a lot of fear around bitcoin. Suddenly, everyone is worried about it. When it was at $60,000, everyone thought it was going to go to the moon. Now, it’s at $37,000, they’re saying it’s going to go to zero. It’s all exaggerated emotions on both sides, the upside and the downside.

I would really counsel people to think like a contrarian. If you were positive about bitcoin at $63,000 or $64,000, you should be doubly positive about it at $37,000.

The weird thing about investing is when we go to the store to pick up milk and groceries, and we see that the milk brand that we use is half price, we might pick up another bottle. It’s obvious.

Well, for some reason, when investments that we are interested in and have been bullish on go on sale at a discount, we suddenly panic and say, “Oh, I don’t want to touch it.”

My hope is that folks would try to think independently from the mainstream. Keep that Warren Buffett advice in mind. The time to make money in the market is when other people are fearful, not when they are all greedy. And right now, there’s a lot of fear in crypto.

If you can focus on that long-term picture, take your mind off the prices that are bouncing around on a daily basis, and do what Teeka is doing, and say, “What is going to happen to supply here? What will happen when these miners all stop selling their coins?”

Remember Teeka saying, “This could be the last year that anyone ever buys a freshly mined bitcoin.” That’s going to really reduce the supply of bitcoin, and, Teeka reckons, push up prices. And I think so, too.

It’s a great time to be aware of that and be able to take advantage of these lower prices.

Tom: Well, thank you for bringing that information to me and The Weekly Pulse viewers, Chris. Great information.

Chris: Thanks, Tom.

Tom: If you’re still here, that means you’re not yet a member of Legacy Inner Circle. This is one of the many examples of Chris being able to look into the model portfolios of Teeka and the other Legacy Research experts.

Chris, for those who are not yet inside Legacy Inner Circle, can you share why now is the time to take a closer look and join us inside the members’ area?

Chris: Tom, what I’d say to folks who are watching this is to understand that Legacy Research is an independent publishing alliance. We have 13 paid investment advisories around bleeding-edge technologies, crypto, commodities. It’s a very broad range of knowledge. The analysts heading up those advisories are pros. They’re veteran investors, former Wall Street guys, guys with long track records of making money for their readers.

Legacy Inner Circle is a way into that world. A lot of folks watching this will already have purchased one or more newsletters. But Legacy Inner Circle is very different to anything else out there. Because we have access to all the research that all our analysts put out – Jeff Brown, Teeka Tiwari, Nick Giambruno, Dave Forest. We can follow what’s hot in the market. We can give people deep dives into those stories that are bubbling up. We’re not confined to one asset class or one idea. We’ll go wherever the profits are. And we’ll bring folks the insights from experts on those themes that are making folks money. And we will help members to understand what is going on, and teach them how to take advantage of those opportunities.

So it’s a great way to broaden out your investing journey. It’s a learning journey, as far as I’m concerned. None of us are born super geniuses when it comes to investing. So I think it’s a great way to get insights on all these different themes that are happening in the market, all these different profit opportunities, and not be confined to, say, gold or tech or crypto.

We’ve covered the legal cannabis boom. We’ve covered 5G, AI, the precious metals rally, tech metals (these metals that go into the rechargeable batteries behind a lot of bleeding-edge technologies such as electric vehicles). So we really do it all. We take people on deep dives into those profit themes in the market so that folks can understand what’s going on and profit in their portfolios.

Tom: You can’t go wrong. Below this video, you’ll see a button. Click that button, go learn more inside the video. Read what you’re going to get inside Legacy Inner Circle.

We have a special offer for you. For less than a venti coffee at Starbucks, you’ll be able to get access to everything inside Legacy Inner Circle. Including four brand-new reports Chris and the team put together talking about the four megatrends. They’re not mentioned in the video or on that page yet, because they’re brand-new.

To gain access for less than a venti at Starbucks is absolutely ridiculous. But that’s our investment into you and your future. Because we know once you get a taste of this, it’s going to grow and protect your assets. Many people don’t ever get to experience the type of growth and protection that’s brought to the Legacy Inner Circle members.

So we look forward to seeing you inside the members’ area and the IOS and Android app. Click that button, go learn more, join, and we’ll see you in there.

Thanks again, Chris.

Chris: Thanks Tom.

Not yet a Legacy Inner Circle member? Join here.