Our Angry Earth, Bitcoin and the New, New Flight to Quality

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The news is super focused on Naples Florida and then up to Tampa as hurricane Irma carries her girth across the state of Florida. This is not the only natural disaster in progress as an Earthquake in Mexico City killed hundreds and devastated long standing structures leaving thousands homeless. Wildfires in Oregon, California, Washington State and Colorado scorch the earth and leave scars which will be reminders for years to come. Houston and it’s residents are rebuilding now and getting power back after a harrowing storm surge. The earth is angry.

I do not buy into the global warming story perpetuated by those who are really just looking to blame someone for these disasters, when in reality, hurricanes, floods, earthquakes and wildfires are part of the expanse of North America when our – ever waves of grain – and purple mountain majesty – become a cauldron of destruction. A quick review of any of these terms in Wikipedia shows how mother nature really drives economies and the development, and Mom nature can make or break a city a town or a state with the wobble of her wind path. During September our mother earth has been very,very angry, and social media makes it visible to the world -reminding us who is the boss.

As a student of the market, I study where money flows (what asset does it chase) when mother earth gets angry, and it changes often.  For many it is Gold, or some metal, and in years past it has been a variety of assets, like the 30 Year Treasury Bond, The US Dollar, Crude Oil or S&P 500 Put Options. Today it is Digital Currency and mainly Bitcoin, and the shift is in progress and has been subtle.

Those who do not follow Bitcoin or Digital Currencies should click here and read some articles on digital currency also known as Cryptocurrency. This electronic currency eventually will replace the cash we carry in our pocket because it will be managed by the crowd and the collective – not a government or bank – our society began moving this way in the 1990’s but was distracted by the technology crash in 2000 and the housing crash in 2008, by 2020 the global consumer will abandon fiat currency (issued by the government) as the main source of payment.  This will happen because blockchain (a perfect per to peer ledger system) will enable us to look back and view records of previous transactions that are NOT change-able.  The blockchain is the most important clearing system ever constructed, and is the most important development since the internet itself in terms of transactions.

Click here for a great video on blockchain

Often during times of strife and disaster we think about core items to survive like food, water and shelter. We think about those things, but we also think it is important to relay to our audience the changes which occur and become more visible (like flight to quality) so they can be informed and arm their tool kit with the things they need.  In the future you will likely need to have a few digital currencies in your mobile wallet (your cell phone) as a method of payment.  Go look at the runs on the banks in Mexico and soon to be Tampa and Naples.  Those who owned digital currency need not rely on the bank to come back online, and you can use Bitcoin on Amazon, United Airlines or a Bitcoin ATM,many retailers, and these are the becoming the axiomatic global currency beyond the Euro or the Dollar.  These will become more prevalent as world order changes, and these natural disasters expose the flaws of fiat currency.

Our writing team wishes all of those in Tampa, Ft. Meyers, Naples, all of Florida, Washington State, California, Colorado, Houston and Mexico City and other spots on this angry earth.  I am a Tampa resident who will return 9/12/17 to act as a volunteer working from Tampa General Hospital and prepare for the follow up punches of hurricane Jose as we sort out this angry earth.

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about the writer                 you can email steve at stevek@ault.com

Steve Kanaval 

Portfolio Manager/Writer/ Market Analyst

Steve began his career in the Trading Pits in Chicago making markets at the Chicago Mercantile Exchange (NYSE:CME) the Chicago Board of Trade and the CBOE in the early 80’s. He ran the Morgan Stanley Derivative Prop Trading for the firm specializing in Index Arbitrage. He continued his career as a Trader/Portfolio Manager for multiple Hedge Funds during the Internet Boom of the 90’s managing large portfolios. Steve is known as an expert in MicroCap Technology Stocks and the emerging Digital Currency markets as a Portfolio Manager for his Family Office.

Steve has managed portfolio’s in volatile asset classes for 3 decades as a commodity trader, hedge fund manager and digital currency trader and miner. Steve is one of the few managers who publishes his views on the asset classes in a public forum and has published more than 10,000 articles simplifying these complex and volatile assets for readers. His work is published on multiple sites including Bloomberg, Equities.com, Hacked.com, CryptoCurrencyNews, Cryptosumerism, The Wall Street Chronicle and is the President of Ault Media Group in Newport Beach California. His work includes research, journalism and archived video on important market volatility related to stocks, digital currency and other volatile misunderstood asset classes. He offers a humorous, unique insight and the related back stories and drivers for readers interested in volatility and emerging market assets.

 

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