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GM everyone. This is 2036, the crypto newsletter that pays you.
Here’s what we’re serving up today 🍲: wealthy folks have been on a shopping spree recently… but they’re not buying what you’re thinking.
Let’s dig in.
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While most of us may have been loading up on beach gear for this summer’s playa time, the super-wealthy of the world have been buying more gold than ever before in history.
Central banks and sovereign wealth funds - the ones that control the real moolah out there - are buying gold as a hedge against:
inflation
US dollar devaluation
chaos (*comforting*)
96% of central banks are looking for a “safe haven” to park their mountains of cash (Norway’s sovereign wealth fund has $1.4 TRILLION in savings - ~$240,000 for each Norwegian citizen).
And there’s a new safe haven in town that they’ll soon be able to play with.
Larry Fink, the CEO of Blackrock - the largest asset manager in the world - has called Bitcoin digitized gold.
He thinks that just like gold, bitcoin protects against currency devaluation and inflation. In his own words, bitcoin is an “international asset that transcends the US dollar.”
So he’s launching a bitcoin ETF in the US - the gateway drug to institutional adoption.
Blackrock is the largest asset manager in the world, with $10 TRILLION in Assets Under Management. This ain’t your run-of-the-mill money manager. This is the emperor.
That means digital gold could quickly eclipse traditional gold.
The first Gold ETF - $GLD - was launched in November 2004. Back then, gold was worth ~15% of all US stocks. It was already a big asset.
Yet it still rose 4X in the 7 years after the launch of the ETF.
Compare that with bitcoin. Today, bitcoin is worth just ~1.3% of the value of all US equities.
That’s tiny relative to gold.
But institutional acceptance of bitcoin is happening at a time when central banks and large institutions are hungrier than ever for this kind of asset.
Everybody is seeking an alternative to the dollar. And Larry Fink is their bannerman.
That’s why Cathie Wood - the most badass woman in finance - predicts bitcoin could be worth up to $1.48 million by 2030.
A 75% compounded annual growth rate is not crazy when you realize bitcoin’s compounded at nearly 275% per year over the last five years.
Remember, bitcoin swings wildly to both the downside and the upside.
A large share of these gains could come from central banks and institutions using bitcoin as digital gold.
On top of that, 80% of all Fortune 500 companies are looking into or already deploying crypto strategies.
And Friday, Ripple won a landmark lawsuit that eases much of the regulatory uncertainty around crypto in the US.
The dominos are falling for crypto to play in the big leagues. And when it does, it’ll be a wild ride.
[If you want to see what else Cathie Wood is betting on, read this]
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