Today I read a small post on FT. It talks about Mr.Mark Spitznagel, the man who made a killing during the financial crisis and again on August 2015 betting against the system. The guy is an interesting lad and strict associate of Nassim Taleb. If you never heard of these two guys, checking out their work could be a fruitful use of your time.
I totally share their views about the current market state. Let me quote Mr. Spitznagel, from the FT piece.
Markets don’t have a purpose any more — they just reflect whatever central planners want them to.
This is the greatest monetary experiment in history. Why wouldn’t it lead to the biggest collapse? My strategy doesn’t require that I’m right about the likelihood of that scenario. Logic dictates to me that it’s inevitable.
The way these people invest, is basically betting against the system, buying cheap options that pay big in case of an abrupt market crash. They manage a big investment fund.
But what if even the small investor could join the contrarian community, benefiting from the collapse of the current financial system?
Today we can do that without complicated and manged instruments. We can do that by simply buying bitcoins. And, unless options, we can hedge against financial collapse without losing money along the way.
Bitcoins can be put to a good use, making you good returns while waiting for the big sweep that will bring down financial markets. And then, when the big drop comes, they will simply skyrocket.
There is a lot of speculation about what drives Bitcoin price. But one thing is for sure, in case of financial turmoil a good fraction of money will seek refuge in Bitcoin. This due to a lot of reasons:
- Bitcoin awareness is growing;
- Bitcoin exchanges made a lot of progress in the last two years.
- Bitcoins cannot be seized or freezed by government.
- Bitcoin can be a useful tool in overtaking capital controls government can put in place in a market crash scenario.
- Bitcoin can store value out of the banking system that will be seriously impaired in a market downturn.
So, even if you’re a small investor, Bitcoin is a big tool for hedging your portfolio against a market crash. It is greater still if you, like me, believe the endgame is near.
Join the cryptocurrency investing community!