Editor's note: It has been roughly five months since President Donald Trump announced his plan for a strategic bitcoin reserve. This milestone shows how far bitcoin has come since 2009. And in this issue – adapted from the March issue of Crypto Capital – editor Eric Wade shares why clearer regulations, government backing, and institutional adoption could cement crypto's role as a cornerstone of generational wealth...
I started mining bitcoin (BTC) in 2013...
The U.S. dollar was losing purchasing power every year. So a digital currency that couldn't be impulsively printed appealed to me. It was similar to a hard currency – like gold – that can be used over the Internet.
When I first began mining, bitcoin wasn't considered a low-inflation asset. Even though the network had its first inflation-reducing halving in 2012, inflation went from more than 25% to more than 10%.
Bitcoin might have been a convenient global digital currency, but it wasn't the best way to sidestep inflation. At least, that's what I tell myself when I remember that I spent the first small amount of bitcoin I mined rather than holding on to it long term.
That makes sense if you see bitcoin as a currency. You put some in your wallet, and you spend it.
And as I've said before, we believe crypto is at a crossroads today... It can remain a currency – something you spend or trade for a quick gain – or it can become a store of value – an asset that accumulates wealth and can be passed down to your heirs...
Bitcoin was worth less than $1,000 when I started mining it in 2013. It's now worth more than 119 times that, with a market cap of nearly $2.4 trillion.
And as bitcoin has continued to increase in value compared with the U.S. dollar, it has started to take on another role: a store of value.
This is a complex concept. But it can be summed up in one simple idea: Would you prefer to store your wealth in something that loses purchasing power... or gains purchasing power?
With bitcoin trading around $119,800 today and Ethereum (ETH) trading for more than $4,400, I'm not the only investor looking for ways to treat tokens and coins more like assets that you can build generational wealth with than currencies to spend.
This shift in mindset is gaining momentum. One reason is that we're beginning to see clearer regulation...
Clearer Rules Could Unlock Trillions for the Crypto Market
President Donald Trump has already made statements, staff and cabinet nominations, and executive orders that indicate the government is backing cryptos.
For example, on March 2, Trump announced his plans to create a strategic reserve of crypto assets for the U.S., including bitcoin, Ethereum, and three other altcoins.
On March 6, Trump announced a national strategic bitcoin reserve. And on March 7, the White House held a crypto summit, where Trump announced his aim to establish clear regulations favoring crypto development.
No national bill has been introduced yet. But we're seeing movement at the state level. In late June, Texas signed a strategic bitcoin reserve into law.
It's now the third state to create a crypto reserve, after New Hampshire and Arizona – but it's the first to fund the reserve with state dollars ($10 million, to be exact). It will use the money to invest in bitcoin.
Meanwhile, there's legislation that has passed a House vote and is now on the Senate floor that promises to set a clear framework for the digital asset industry...
The CLARITY Act will help clarify the roles of the Securities and Exchange Commission and the Commodity Futures Trading Commission when it comes to regulating digital assets.
A crypto-friendly Trump administration and clearer regulation will also help institutional adoption. Institutions will feel more secure building out blockchain-based products, using stablecoins for ease of tracking and low fees, and even begin tokenizing real-world assets like homes, precious metals, intellectual property, warehouse inventory, and more.
Over time, we believe crypto will be considered a form of wealth, like stocks or bonds. We're well on our way to seeing clearer regulation and increased safety in the space. We also expect exchanges, banks, and even brokerages to soon offer crypto services that more closely resemble stock or real estate ownership options.
With clearer regulation and institutional adoption on the horizon, cryptocurrencies will soon be integrated into our everyday lives. While the industry currently has many barriers to entry for novice investors, we're approaching a time when using cryptos will be as simple as sending a Zelle payment or buying a movie ticket. And the security and immutable ownership that comes with cryptos make them far more valuable.
This is the beginning of a major shift in how we interact with the digital economy. And we're right on the frontlines.
Good investing,
Eric Wade
Editor's note: On May 29, a secretive summit of billionaires and White House insiders set the stage for a $2 trillion plan to reboot America's financial system. According to a top Stansberry Research analyst who joined them, this could be one of the biggest trades in history. With this major market shift expected on August 19, you still have a rare chance to position yourself for potentially life-changing gains.
Further Reading
Bitcoin just hit new all-time highs – yet traders are the most bearish on the asset they've been in years. And with more than a decade of data to pull from, we can see something interesting about a sentiment mismatch like this... It's a signal that this rally can continue.
"Today, capital is flying out of America's door," Dr. David Eifrig writes. The U.S.'s global financial empire is starting to fade. And as money flows toward international markets, make sure you're positioned to profit.
