Can governments ban bitcoin?
Governments can't outright ban bitcoin due to its decentralized nature. But don't think they'll deter you from using it.
When the time comes, and assuming the world has a life or death demand for bitcoin, then expect most sovereign governments with central banks to throw fake news, controversy, conspiracy, taxes, ridiculous regulation, and flat-out lies at you until you are too scared or too deterred to use bitcoin.
What's next? Bitcoin causes Covid?
A government like the US federal government will likely avoid banning bitcoin outright unless they devolve into a full-blown totalitarian Marxist government. Which given today's environment, looks possible.
Keep an eye out for more anti-bitcoin FUD (fear, uncertainty, doubt) once central banks start relying more on Central Bank Digital Currencies.
Things should really heat up once they ban cash too. Why ban cash?
Good old-fashioned cash won't survive central bank digital currencies. Expect a ban on cash once central bank digital currencies are in full swing.
Unlike cash, Central bank digital currencies allow central banks and big governments to track and tax every transaction.
With a CBDC, Central banks can control M2 money supply, the velocity of money, and incentivize you to spend it or not.
You will be at the mercy of central planners to live your life.
Brent Johnson Claims Governments will Go To War With Bitcoin when Bitcoin Gets Too Big
This is a no-brainer. You'll probably agree that historically, governments have shown that they don't really like competition and they will do just about anything to keep power.
Governments will fight. Keeping fiat alive means keeping big government alive.
Watch the video clip above for a more thorough explanation from Brent Johnson.
How to stay ahead of central banks and big governments
The Fed and central banks have done a great job of distorting markets. The pandemic has accelerated a tired and manipulated financial economy to a breaking point. So more creative engineering will be required to save the sovereign printing presses from themselves.
Blockchain To The Rescue?
Human beings are resourceful by nature, and it makes perfect sense that someone capable, who saw our rudderless money system, which is nothing more than a driverless school bus screaming down a busy LA freeway.
One such human, Satoshi Nakamoto, decided to solve the problem by engineering a decentralized money system known as bitcoin. This was way back in 2008. After the central banks disappointed the world with the Great Financial Crisis they created.
A new kind of borderless, digital money that could operate in an environment free of government intervention? Sign me up!
The hope is that someday, Bitcoin or at least the blockchain technology could avoid all the predictable slippery slopes that come from centralized money schemes.
When the deep-staters, the Cantillion whores, the banking cartels, and the rigged markets are done murdering the current fiat money system and have switched over to communism…because somehow that seems like the right answer (wtf?)…there will be at least some glass to break in case of an emergency. Bitcoin. That's the hope.
Genius ideas take time. Wars need to be fought. Revolutions need to be won. And so it goes.
Buy Bitcoin or What?
We talk about bitcoin quite a bit inside Rebel Capitalist Pro. There aren't too many people out there rooting for its failure. However, as Brent said in the video above, Bitcoin is political by nature. It will face constant headwinds.
George Gammon likes Bitcoin as a speculation.
Bitcoin lacks history
Unlike, real estate, or oil, there is no 100+ year history of BTC. It's impossible to tell if bitcoin is cheap. It could just as easily go to $10k as it could go to $100k. This makes BTC a hard asset to purchase from a pure investment perspective. Even though it can pay you to own it now.
If you follow George's 10/80/10 investment philosophy, then you know that 10% of your portfolio should be reserved for speculative assets with asymmetric upside potential.
Bitcoin fits the bill well, as a speculation. So it makes sense to own some bitcoin. Especially at current prices.
As of this writing, Bitcoin is hovering around $30K per coin.
Bitcoin has a limited supply. A limited supply is what makes bitcoin so scarce. Scarcity helps increase the value of something. Limited supply also makes the price swings incredibly volatile.
One Million Satoshi's Make Up A Single Bitcoin
At some point in the far future when all 21 bitcoin have been mined, it could be possible that society shifts away from using bitcoin in their everyday lingo, towards SATs.
A Sat, or satoshi, is one unit of a bitcoin. A bitcoin is made up of one million satoshi's.
Someday, you'll have sats in your digital wallet, much like have dollars in your physical wallet. Owning a full bitcoin would be rare for most people in the future since a full bitcoin would be too expensive.
Maybe a full bitcoin is something you hold onto and never sell? Keep it in a trust, let it compound on the Celcius App or Blockfi, then pass it down to your kids when that time comes.
Bitcoin is now a multi-dimensional asset class. You can benefit from price appreciation and earn a yield.
If things keep going the way they are going, then, it could someday become a family heirloom for those of us who hodl (Hold On for Dear Life).
If central banks and big governments continue to destroy their fiat currencies, through continued reckless monetary and financial policy, then you better believe blockchain will prevail.
As sovereign individuals, who are now witnessing our liberty and personal freedom in severe jeopardy, it's obvious we need sovereign money. Our freedom now depends on it.
The above video is a clip from a recent interview with money manager and thought leader, Brent Johnson of Santiago Capital Fund. Brent is also a resident Rebel Capitalist Pro.
Brent joins us every first Monday of each month to answer questions related to macro and investing.
If you are not a Rebel Capitalist Pro, consider joining the community.
Rebel Capitalist Pro is a great resource if you are money-focused, you want to learn more about money, how to grow it, and how to keep it.
What makes RCP so special is that we've created an environment that allows you to interact with accomplished professionals who are willing to share their knowledge with you.
We are long-term, macro-focused, deep-value investors.
You actually get access to Lyn and Chris's premium macro newsletters inside Rebel Capitalist Pro.
We also have an active live q&a schedule. Here you are given an opportunity to ask George Gammon, Lyn Alden, Chris MacinTosh, and now Brent Johnson, Jason Hartman, Tony Greer, and Patrick Ceresna questions.
If you need stock picks and model portfolio's we have you covered there as well. Lyn Alden provides access to her own model portfolios that you can emulate. She'll even tell you when updates have been made.
Rebel Capitalist Pro is an immersive learning environment that allows you to learn about macroeconomics and investing.
We grow our wealth so we can afford more personal freedom. So naturally, personal freedom is a topic we discuss as well.
Give Rebel Capitalist Pro a shot. You won't be disappointed.