Why Obama Was Bitcoin’s Worst Nightmare

Louis BaseneseThe timing of Bitcoin’s record-shattering run wasn’t an accident.

It was more like destiny.

As Americans awoke on Tuesday, Nov. 8, 2016, everything seemed quite normal.

The day began like most others — filled with pumpkin-spiced lattes, Uber rides, yoga classes and Facebook.

Only the geekiest of the geeks were tracking Bitcoin prices, which opened at $713.

Yet this particular Tuesday was also presidential Election Day, which promised to be oodles of fun.

Talk about must-see TV…

Around 10:00 p.m., Hillary Clinton would be addressing the nation, having just won the White House in landslide fashion.

But the red states spoiled America’s party.

Instead of Hillary’s moment of glory…

The entertainment ended up being American arrogance…

crying faces

The story behind the story, however, was Bitcoin.

Let me explain…

President Obama quietly revelled in squashing any hopes of a cryptocurrency revolution.

For eight years, his policies uplifted socialist ideals and thwarted free-thinking innovations like blockchain.

Clinton intended to carry Obama’s torch further down the path to liberal ruin.

Instead, she became an embarrassing footnote to history. And as the clock struck midnight on Hillary, Bitcoin’s reign had officially begun.

You see, while Obama wanted to prevent Bitcoin’s rise, his actions actually sowed the seeds of an eventual revolution. All the world needed was him and any copycat leader like Clinton out of the way to uncork the pent-up demand.

As I write, Bitcoin trades for more than $3,200

Its hefty price tag directly reflects the impact of the changing of the presidential guard on Nov. 8, 2016.

Want more proof?

Here are three ways that President Obama actually guaranteed the cryptocurrency revolution we’re witnessing today would come to pass.

Begging for an Alternative Asset Class

Jonathan RodriguezBarack Obama — along with Fed chairs Ben Bernanke and Janet Yellen — kept interest rates below the inflation rate for eight years after the financial crisis.

The Fed also inflated the money supply by buying $4 trillion of government bonds.

Other central banks copied U.S. monetary policies. And these actions inflated asset prices — like real estate, stocks and collectibles — worldwide.

That meant that interest rates were far from their natural level.

As a result, productivity growth crashed and economic growth screeched to a halt.

High prices plus slow growth reduced the prospective returns from investments both from yields (dividends, rentals, and interest) — and from potential capital gains.

In other words, people weren’t making as much money from traditional assets.

With investments yielding badly, and cash being eroded by inflation, investors only had one alternative.

That is, seek alternative stores of value — ones unaffected by governments and central banks.

That’s where cryptocurrencies came in.

Supplies of cryptos are strictly limited by an algorithm. Free from erosion by inflation and secure from government oversight, they made the perfect haven for investors looking for a new asset class.

Thanks, Obama!

Take My Taxes, but Don’t Touch My Cryptos

Jonathan RodriguezMark this date: April 1, 2015.

That’s the day former President Barack Obama made fools of us all.

Without consulting Congress, Obama quietly signed an executive order giving U.S. authorities the power to confiscate cryptocurrency holdings of anyone suspected to be a criminal.

With one swift dictatorial move, the president made it clear that he didn’t love civil liberties as much as some might think.

To be fair, some criminals hold cryptocurrencies.

But so do plenty of Americans that just don’t want the government manipulating the value of their hard-earned savings by endlessly printing money.

In fact, he officially declared a national emergency to deal with the “unusual and extraordinary” threat that cryptos pose.

Yikes. That seems a little much.

Here’s another helping of ridiculous…

One of the many reasons that the government can take your coins per this order includes the following:

Causing a significant disruption to the availability of a computer.

Yep, the government can confiscate all your crypto coins immediately — and without warning — for something as simple as accidentally crashing a computer at any public building.

Sure, this scenario isn’t a likely one. But it’s certainly possible.

The bottom line is that the executive order represented a bold step in suppressing American freedom.

And it’s no wonder cryptocurrencies have soared since Trump — an unabashed hater of rules, especially financial ones — took office.

Don’t expect this uptrend to end anytime soon.

Give Me Liberty, Privacy and Bitcoin

Louis BaseneseJonathan alluded to this simple truth…

Whenever you try to deny citizens of a privilege, it can backfire violently by creating an even more intense desire for it — and need to protect it.

In this regard, Obama made a fatal misstep in relation to privacy, which all but guaranteed that Americans would clamor for cryptos.

It happened in the aftermath of the tragic terrorist attack in San Bernardino. You’ll recall the Justice Department and Apple locked horns over unlocking the terrorist’s iPhone.

Well, at the annual tech conference South by Southwest Interactive, President Obama jumped into the fray.

He said that authorities have always been able to break locks in the physical world when they can prove to a judge they have probable cause. By extension, they should have the same right to invade our privacy in the digital world.

While President Obama was simply speaking in generalities, his Justice Department cited a specific statute to carry out such activities — the All Writs Act of 1789.

Rightly so, Apple characterized the statute “as an obscure law dredged up by the government to achieve unprecedented power.”

Amen!

In short, the government was standing on sacred ground and disrespecting it! The U.S. Constitution explicitly protects our right to privacy.

Here’s the key… The extreme attempt to deny privacy in this San Bernardino case instantly intensified the appeal of cryptocurrencies because they protect privacy.

Then just days before leaving office, President Obama poured the equivalent of high-octane fuel on the already-lit fire for cryptos.

How so?

As The New York Times Charles Savage reported, “[He] expanded the power of the National Security Agency to share globally intercepted personal communications with the government’s 16 other intelligence agencies before applying privacy protections.”

This brazen move represented a major relaxation of long-standing privacy protections. In turn, bitcoin and other cryptocurrencies instantly became a way to protest the privacy invasions. It also became an all-important and urgent means to protect financial privacy.

The rest is history! The surging demand led to surging prices.

If you’re not capitalizing on the trend, what are you waiting for?! Our readers just had the opportunity for not one, but two triple-digit gains in the span of 10 days. Make sure you’re positioned before the next major cryptocurrency move by signing up for our research here.

Ahead of the tape,

Louis Basenese
Chief Investment Strategist, Wall Street Daily

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The timing of Bitcoin’s record-shattering run wasn’t an accident. It was more like destiny. As Americans awoke on Tuesday, Nov. 8, 2016, everything seemed quite normal. The day began like most others — filled with pumpkin-spiced lattes, Uber rides, yoga classes and Facebook. Only the geekiest of the geeks were tracking Bitcoin prices, which opened...