One big aspect here at Midas Touch Consulting is wealth preservation. When the whole world writes article about the halving event we see no edge or urgency. Edges are not to be found when everybody is aware about them. Mutually you can not find truth in news per se. We encourage to rather ask quality questions that have a long term impact on an investment vehicle and find principle based answers. There is never a sure bet and never certainty since no one knows the future. Butyou can stack edges. In our humble opinion the likelihood that Bitcoin disappears is very slim. We asked ourselves the following questions, and their answers lead us to believe that Bitcoin is an essential aspect in a wealth portfolio since its transaction time and ability matters.
- How can I insure myself against rapid inflation?
- What if there is a gold ban for private ownership as the world has seen many times before?
- What will happen in transition times of fiat currencies hyper inflating, the Eurosystem breaking apart, war scenarios etc. … ?
- How can I make a larger size purchase with precious metals in another country?
- How do I sell real estate if a government imposed taxation is looming?
BTC-USD, Monthly Percentage Chart, Persistent Through Time:
Bitcoin is certainly a volatile instrument. News affect it strongly and there is still much uncertainty within the average speculator. News can affect Bitcoin´s price both ways though. Should news leak that governments acquired positions, which we assume they have, higher prices would be in store. What creates certainty for us besides its strong fundamentals is, that this specific instrument has bounced now back for years from whatever was thrown at it. The list is long of why we have incorporated this “store of value vehicle” many years ago into our wealth preserving portfolio.
BTC-USD, Weekly Chart, Transaction Time And Ability Matters:
BTC-USD, weekly chart as of May 13th, 2020
Overall markets most likely will be supported by the government through November elections. It would come to no surprise that after these events the stock-market could get hit by a quite impactful down ward leg again (possibly stronger in percentage decline of what we have seen recently). This should drag all asset classes like precious metals and Bitcoin down alongside for the short term. However, we would see this as another great opportunity to add to our Bitcoin long term holdings.
Actually, our quad strategy allows for an accumulation technique. It produces profits while the runner part of each position is transferred to hard wallets. A buy and hold approach for long term wealth preservation. Feel free to ask more detailed questions in our free telegram channel.
BTC-USDT, Daily Chart, Buy The Rumor Sell The News:
BTC-USDT, daily chart as of May 13th, 2020
Not so fast. As mentioned we gave little credit to the halving event but rather look for principles. We had a “V” shaped recovery and as such this bottom is strong. Naturally a temporary down leg might be in place but statistically we find ourselves in a strong foundation here for further price advances. So far prices have advanced in their uptrend channel.
Transaction time and ability matters
What is wealth preservation? There is a multitude of answers to this question since security means different things to different people. We find liquidity, a means to master any situation for yourself and your family one important aspect. It isn’t helpful to be rich just on paper. Wealth means in part, to be able to express yourself and act freely. To do so in a world that is structured by a complex set of rules, requires first of all to be familiar with the rules and secondly to be able to play the “game” on your terms by ideally making your own rules.
We are finding ourselves in a time of great change where transaction times need to be shorter since rules can change fast. Being able to transform assets from the digital to the physical and vise versa is definitely an edge not to be overlooked. Bitcoin provides both transaction time and ability which matters for the years to come!
Staying flexible and open minded towards investment opportunities that are not the most typical from a historical perspective, creates the edge for the anticipatory market participant.