Today, we want to examine the controversial Bitcoin. Is it a currency? Store of wealth? Commodity? We prefer to see it as none of the above! We view bitcoin as a trading vehicle or medium of exchange ,currently used by many to move money outside the system. Many years ago, people could board an airplane coming back from Switzerland with a suitcase filled with gold coins or gold bars and no questions would be asked. Today, there are still no questions asked but the Customs or TSA officials will simply seize it and let you battle in court for years to get it back. The assumption is it must be from some illegal activity, and under the growing newly-enforced civil forfeiture laws, the governments of the world just take it from you. Our feeling is that it has a place in the future and will not go away anytime soon. Its standing may in fact grow as Central Banks around the world start to convert to a cashless system and create their own digital currencies. As long as enough people in the world have confidence in Bitcoin, it will be here to stay. Major banks recognize this and have entered into the trading of Bitcoin the past few years. Its volatile, huge swings create massive profit potential. At HFZ, we trade the underlying Bitcoin itself but also use GBTC: Grayscale Bitcoin Trust. This is a slightly levered security which will track Bitcoins moves with a little leverage. We are projecting a series of tradable highs and lows the next few months with a major cycle low for BTC sometime in the late second quarter of 2020. This will lead to a major back-up-the-truck moment. What follows that low is likely a run at all time highs. Become a Gold Member at HFZ to follow our BTC and GBTC trades.
We are currently long BTC at HFZ.