Bitcoin Will See 23X Returns by the End of the Decade

Time to have an uncomfortable conversation.

Not me, mind you.

I’m actually talking about you—and the conversation you need to have with your financial pro.

Unless, of course, your financial pro has already positioned you smartly in the crypto market.

My bet: That’s not the case.

Thus, the need for that uncomfortable conversation, in which you explain to said pro that you demand they add bitcoin to your portfolio. Remember: You are the client. You get to direct your money. And if your financial pro doesn’t have 5% of your cash in bitcoin, then your pro is an amateur doing you a wealth-losing disservice.

Your financial pro will not like this. He/she will probably tense up. Tell you I’m an idiot—that you should never listen to a newsletter writer who isn’t a pro himself (rebuttal: Ummmm, Jeff spent 17 years as a financial writer for The Wall Street Journal, served as a trader and analyst for a small-cap hedge fund, and had his Series 7 license at one point. He kinda has a clue about this stuff, including the financial prudence, know-your-customer rules, etc.)

Putting 5% of your wealth into bitcoin is not some wildly egregious, damn-the-torpedoes investment strategy. It’s prudent. Just as prudent at having 5% of your wealth in gold, or 5% in real estate investment trusts (REITs).

Not having exposure to one of the most important asset classes of the 21^st century is, arguably, the most imprudent stance a financial pro can take.

A well-balanced portfolio can certainly handle a 5% exposure to bitcoin, because even if bitcoin blows apart and sinks to zero (it won’t), the returns on the rest of your portfolio for a single year will cover that loss. Heck, depending on the make-up of your portfolio, dividend income alone in just one year could cover your losses.

Five percent is a very minimal risk to take. But the potential reward is asymmetrically large.

Let’s consider…

Assume we’ve got a $100,000 portfolio, and we put 5% into bitcoin today. That’s $5,000 when bitcoin is trading at $46,500. So that’s .108 bitcoin.

And now we’re going to assume that bitcoin touches a new all-time high of $185,000 that I’m predicting will occur in the wake of the so-called “halving” that happens this April. Your $5,000 becomes $19,980, which we will round up to $20,000.

So, a 4x return in the 12 to 15 months after the April halving. Not many other investments you own will 4x in such a short period. (By the way, the halving is a technical issue baked into the bitcoin code. It happens every four-ish years, and it makes the creation of new bitcoin twice as hard as before the halving by cutting the supply of new bitcoin in half. Each of the previous three halvings have seen bitcoin touch all-time highs afterwards. In numerical terms, that means bitcoin rose between 650% and more than 9,000%.)

But a 4x return is not the end of this story.

Bitcoin has a much bigger price awaiting—likely north of $1 million.

And I know that sounds like hyperbolic clickbait. But there is solid math that gets us there. I won’t go through that math again (I’ve done it several times) but, basically, the Western world is going to need to anchor Western currencies to a hard asset to manage the explosive amount of governmental debts that now exist. In centuries past, gold assumed that role. And gold might play a role this time as well, but bitcoin is going to be the star of that show because it is far more liquid and portable than gold, far rarer, immensely more convenient to store, and much safer than gold.

I’m confident my longer-term prediction that bitcoin sees a price of $1,050,000 will materialize. When it does, your $5,000 investment today is worth more than $113,000 tomorrow—a nearly 23x gain. Pretty sure neither you nor I have a stock or commodity in our portfolio that will 23x by the end of this decade.

The other argument you can use in this uncomfortable conversation with a financial pro who does not want you to email this dispatch to them (and, of course, that’s a hint) is this: If bitcoin is good enough for JPMorgan Chase, BlackRock, Invesco, Franklin-Templeton, Fidelity, and so many other financial giants…

If bitcoin is good enough for New York Life, MassMutual, and Liberty Mutual to hold as assets on their books (and it’s not like insurance portfolio managers are Wild West gunslingers) …

If bitcoin is good enough for legendary hedge fund mangers such as George Soros, Stanley Druckenmiller, and Paul Tudor Jones…

Then why is a 5% position in bitcoin not good enough for little ol’ me?

And that is the uncomfortable conversation you need to have with your financial pro.

And soon.

We are in the early stages of what will quite likely be an epic bull market—a bull market that generations of future investors will look back on and wish they could have been a part of.

Don’t miss it simply because your financial pro is doing you a disservice.