There’s a new bull market emerging.
It’s an idea that would have seemed absurd a few years ago.
Yet, while stocks are stuck in a multi-year holding pattern, it churns higher month after month.
It’s beating gold. Trouncing silver. And outpacing probably 98% of all stocks in the market.
And thanks to a unique and little-understood attribute, its value could explode many times over.
Here’s what it is and the simplest way investors can get in on it now.
The Harder They Fall...
All bull markets are born from bear markets.
The more severe the bear market, the greater bull market that follows.
The 2008 credit crisis was an extreme bear. The bull market since has been equally extreme.
The five year bear market in gold stocks was probably worse than the credit crisis. It’s rebound is shaping up to be equally as big.
That’s why you buy after it all.
Long after the headlines fade, prices collapse, and investors move on to the story du jour, the values are often deep and the potential profits are massive.
It’s the boom-bust cycle.
Right now it’s playing out all over again.
This time around it’s Bitcoin.
Editor’s note: There’s an easy way to ride the Bitcoin bull without having to traverse the Deep Web which I’ll show you below.
If you cringed a bit when I said “Bitcoin,” that’s a good thing.
Bitcoin bubbled up in late 2013. Bitcoin prices jumped 500% in a few months time.
Bitcoin was everywhere. CNBC, Bloomberg, main page of Yahoo Finance. Everywhere.
On November 29, 2014, CNN reported Bitcoin prices hit $1242 and blared the headline with “Bitcoin worth almost as much as gold.”
Naturally, that was also the top of the market.
Remarkably steady declines followed.
Today though, all signs say the bust is over and the boom is back:
There was initial “stealth” bull market phase. It built into a full blown mania. Collapsed. And now is starting all over.
This time, however, there are many more advantages.
The Bitcoin bubble brought mainstream attention.
Today the total value of the Bitcoin market is now $11 billion and there are thousands of legitimate businesses which take Bitcoin as payment.
The bubble also added a lot of believability to Bitcoin as an investment.
Bitcoin reaching $1240 sounds a lot more reasonable today after hitting that level in 2013 than it did when Bitcoins were just $18 in 2011, doesn’t it?
It sure does and investors are coming back to Bitcoin.
Prices are rising and things could get really crazy at any moment.
The Coming “Peak Bitcoin”
You see, Bitcoin is like most other commodities -- with one major difference.
Bitcoins are “mined” just like many commodities.
The only real difference is the cryptocurrency is mined electronically by computers solving complex equations instead of digging deep into the earth and processing the ore.
Both are also affected greatly by prices.
When prices are up, mining activity will increase. When prices are low, mining activity will drop.
Copper went from 60 cents above $4.00 per pound. Global copper mining production increased 50%.
When Bitcoin prices reached $1,000, Bitcoin production peaked too.
As they say, the solution to high prices is high prices.
Bitcoin, however, is a little bit different.
By it’s nature, Bitcoin is a truly limited resource.
The maximum number of Bitcoins that will ever be in circulation is limited to 21 million.
There are currently 16 million Bitcoin in circulation.
There are only 5 million more to be produced until it’s all over.
That’s because the way Bitcoins are “mined,” it gets progressively more expensive to mine new ones.
By the time total Bitcoin hits 20 million (which is only a couple years away), it will take thousands of dollars worth of electricity to create a new one.
Remember Peak Oil Theory?
The world was running out of oil. Was only a matter of time until gas was $10 a gallon...if there was any available at all.
It was a theory though. And the law of high prices blew a hole right through it in time too.
“Peak Bitcoin” is an inevitability. It’s baked into it.
That means there will eventually reach a point when Bitcoin prices rise exponentially and the current price of $690 will look extremely cheap.
The Virtuous Cycle
We’ve watched this cycle play out time and time again over the centuries.
There are booms. There are busts. There are re-booms.
Right now Bitcoin is re-booming.
Best of all, there are finally ways for regular investors to get in on it without having to fill your den with computer processing power like Bitcoin Investment Trust (GBTC).
But a year from now, after Bitcoin adds another 30% to 50%, you can bet it will be back on the headlines of CNN again.
Of course, by then it will be too late again.