How Can a Volatile Asset Be a Store of Value?

How Can a Volatile Asset Be a Store of Value?

When there’s geopolitical or economic uncertainty, you can bet governments will use it as a reason to print more money.

Right now, we’re on the cusp of what could be a wider war in the Middle East. And back home, a major strike by U.S. dockworkers who oppose automation of their jobs is on hold.

The uncertainty has rattled the markets…

After finishing a record run higher through the historically volatile month of September… The S&P 500 is down 1% since the start of October.

Whether you blame the tensions between Israel and Iran and its proxies… Or the labor strife between dockworkers and managers of the nation’s seaports…

One thing is for sure – the government will come to the rescue. Meaning more money printing is on the way.

And when the feds pump more liquidity into the economy, it increases inflation.

That’s why I always take stock of where we are in the current market cycle and ask myself, “Is the money supply going to grow faster or slower than the normal rate?”

I don’t think you need MIT-level intelligence to know that it’ll grow faster.

And when you throw in the possibility of wider war in the Middle East and possible economic slowdown caused by supply chain disruptions, it’ll accelerate even more.

Friends, I have to tell you an ugly truth: When the government expands its monetary policy, it only enriches the most well-off in society who already have assets. As inflation increases, so does the value of the assets they own.

For those who are not so well-off – well, the only thing they’ll see go up are prices.

If you want to climb the ladder from not-so-well-off to well-off, the first step is to own what I believe is the lowest-risk, highest-reward asset on the market: Bitcoin.

I’m sure that comes as no surprise to you. I’ve been pounding the table on bitcoin ownership since 2016.

That’s because if you want to protect your wealth, the best place to store it is in some bitcoin.

How Can a Volatile Asset be a Safe Haven?