Money Is Changing Fast

Prior to the mid-1800s, gold and silver were the primary form of money. From the mid-1800s to the early 1900s, cash banknotes were substituted for gold and silver coins. From the early 1900s to the 1970s, checking accounts became more popular to transact. And since the 1970s, credit cards have become the tool of choice. Now it's all changing again! The modern change to cryptocurrency will be significant for many reasons.

First, it will happen quickly. Every technical revolution happens quicker than the prior revolution. Cryptocurrencies will likely be common within just 5 years.

Second, there is a battle heating up as different constituencies vie for control of the new money. After all, it was famed banker Mayer Amshel Rothschild who was quoted in the 18th century as saying, "Permit me to issue and control the money of a nation, and I care not who makes its laws".

Whoever controls the crypto world will eventually have massive influence over our government, just as the banking cartels do today. Is it any wonder why every billionaire is getting into the crypto game, creating their own crypto coin?

When it comes to money, you can only do four things with it:

A) move it or transact with it,

B) store it or save it,

C) lend it, and/or

D) securitize it

No form of money is perfect at all these things. With different cryptos, it's the same way.

By far, Bitcoin (BTC) has been the leader of cryptocurrencies, currently sporting a $2 trillion money supply. Until recently, it was a great tool for storing value, but a horrible tool for transacting. It would cost around 2% of your transaction to move value, and it would take 10 minutes or more to complete the transaction. Imagine sitting in the grocery store line waiting 10 minutes for your BTC transaction to clear!

Fortunately today, with the Lightning Network, BTC transactions of significant or small values cost only fractions of a penny and can clear in less than a second. So BTC is today ideal fore performing all monetary activities about as perfect as any form of money. Even more perfect than gold or silver, which are difficult to carry around.

Furthermore, BTC does not require a banking infrastructure or banks! This is why the transactions are so cheap, versus paying Visa and Mastercard 2.4% of every transaction. BTC has no owner or controller, and is instead controlled by an immutable software formula and markets.

To compete with BTC, we have the powerful, self-interested banking cartels pushing a different type of crypto called "Stablecoins". One example of a Stablecoin is called the US Dollar Coin (USDC) promoted by Circle Internet Group, a now publicly traded company trading under the symbol CRCL.

Stablecoins differ from BTC in that their value is controlled by manipulating the supply of the coin. Unlike USDC, the supply of BTC is determined by market forces, and eventually there will only be 21 million created. Circle controls/manipulates the USDC supply, and therefore its value, so that the value remains aligned with the dollar. 1 USDC = 1 USD. Let's not forget that the U.S. dollar constantly loses value and is therefore a horrible store of value, even though we all use it for transacting!

The main advantage for using USDC is that we are used to counting value in dollars, not SATS (Satoshis) and BTC. So it is easier to conceptualize relative value. Either coin can be legally made into "legal tender", but we can bet our bottom dollar that the banking cartels will push for USDC legal tender status, where they can control the coin, while keeping BTC as just another asset like gold, causing capital gains tax consequences on every transaction, thereby discouraging its use in everyday transactions. The banks want to maintain their control over the money supply, so they can maintain their control over our government.

Stablecoins work well for transactions, but are horrible for storing value because the supply is manipulated.

Generally speaking, the market loves BTC, but the powerful banking cartels and the governments they control will be pushing Stablecoins.....which are not stable! They lose value constantly, like the dollar.

Who will win this battle? For the foreseeable future, probably both! We may end up saving with BTC, and transacting with USDC.

But the new weapon in the crypto war is information and the cryptocurrencies themselves. In wartime, it is not those fighting the war who will win, but those who supply the weapons. And in this war, two of the biggest suppliers are Coinbase (COIN) and Circle Internet Group (CRCL).

Both stocks recently ramped significantly higher and are pulling back in reaction. Once the pullback is over, I believe both companies will outperform long-term by wide margins. They will also be volatile.

Our money is again changing, and fast. And where there is rapid worldwide change, there is opportunity. At the end of the day, my personal hope is BTC wins this war, as it will end the banking control over our government and restore the freedom intended by our country's founding fathers. But the opponents of true economic freedom (the banking cartels and central banks) are not going down without a fight.