Fri, Dec 22, 2017|Justin Brill

Bitcoin Is 'Crashing'

Bitcoin is 'crashing'... What you must understand about cryptocurrencies... New research: Sjug's favorite investment for 2018...

Editor's note: The Stansberry Research offices will be closed on Monday and Tuesday for the Christmas holiday. We'll resume our usual business hours on Wednesday, December 27. We hope you enjoy the holiday.

**We (reluctantly) begin today's Digest with a familiar subject...**

Bitcoin and cryptocurrencies.

Unless you've been living under a rock for the past few months, you've likely noticed the financial media has suddenly become obsessed with all things "crypto." But it's clear most of these folks have no clue what they're talking about. And you don't have to look any further than today's headlines to see it...

The same folks who were touting the record highs in bitcoin as recently as Monday – and trotting out bullish guest after guest with outrageous price targets – are now trumpeting the "bear market in bitcoin" and the "end of the crypto bubble."

Yes, bitcoin has fallen about 30% since hitting a record high near $20,000 earlier this week, well into official bear market territory (defined as a decline of 20% or more from a high). And yes, many other cryptocurrencies have fallen even more.

But what these folks don't understand is, this isn't unusual.

As we've discussed, these digital assets are extremely volatile. They routinely suffer corrections of 20%... 30%... even 50% or more. That is to be expected in assets that can rally hundreds or thousands of percent in a relatively short time.

**To be clear, we aren't saying this isn't the start of a more serious decline...**

It's possible. We're already seeing clear signs that a "crypto mania" is taking hold. (Look no further than the growing list of stocks soaring hundreds of percent after adding "crypto" or "blockchain" to their names. It's similar to what we saw during the 1990s tech bubble, when companies rushed to add "dot-com" to their names.) The boom could end at any time.

What we are saying is that this week's decline alone isn't a reason to sell or turn bearish. It's well within "normal" bounds so far. And there are fundamental reasons to believe the real mania hasn't even started.

In short, if you were interested in speculating on cryptocurrencies at record highs, you have a great opportunity to buy at lower prices today.

Is it risky?

Absolutely. Cryptos are always risky. That's why we've repeatedly urged you to follow strict position-sizing limits and not to risk a penny you aren't willing to lose.

But if the boom continues, the potential gains could be extraordinary. If you can afford to speculate, you have a real chance to turn a few small bets into life-changing money.

If you're interested in getting started in cryptos, we know of no better guide than our colleague Tama Churchouse, editor for our corporate affiliate Stansberry Churchouse Research.

Folks who joined his brand-new Crypto Capital advisory have already seen gains of up to 1,577% in just two months. But Tama believes the biggest gains are yet to come... And he has agreed to reopen Crypto Capital to new subscribers for a short time. Click here for all the details on this special offer.

But if you're not in a position to speculate...

Or if you're simply looking for a high-conviction idea where you can invest a more significant amount of money, you're in luck.

In the latest issue of True Wealth, our colleague Steve Sjuggerud just shared his No. 1 investment idea for 2018. He believes it's the single best way to profit from the new "Global Melt Up" in stocks, and the perfect place for new money today.

Steve originally shared this idea with Stansberry Alliance members at our exclusive Las Vegas conference a few months ago. Folks who took his advice are already up almost 30%.

But Steve is even more bullish today. He believes the biggest gains are still ahead... and says the stock could easily surge 50% or more, almost overnight.

You see, this company is in an unusual position...

It owns a massive stake in one of the world's most dominant technology firms (which also happens to be one of Steve's favorite companies). Its stake in this company is worth more than $150 billion today. Yet, its current market value is only about $100 billion.

In other words, this company is trading at a massive discount to the value of this single investment alone. And this doesn't include the value of its growing business "empire" around the globe. As Steve explained...

[The company] is complicated to understand at first. It has a variety of business segments. And it operates in many countries that you couldn't find even if you had a map. At Investor Day, the heads of a few segments spoke about them:

Online classifieds (think Craigslist or eBay, but overseas)

E-commerce (think Amazon in other countries)

Food delivery (order on your phone, it comes to your door)

Video entertainment (think Netflix overseas, but with local-country content)

All told, Steve says this company is worth at least $180 billion today...

But again, it's currently trading for a little more than $100 billion. Shares could surge more than 50% next week, even if nothing happens.

But Steve expects his readers will do far better. If the company's stake in the tech giant rises at all (it's up more than 100% this year alone) – or if the company's global businesses continue to grow as they have for the past several years – he believes shares could easily rise triple digits from here.

It wouldn't be fair to Steve's subscribers to share all the details here. But you can get instant access to his favorite opportunity of 2018 with a 100% risk-free subscription to True Wealth. At just $199 for a full year, there is no better value in our industry. Click here to learn more.

Great Minds Wanted, Wicked Pens Adored

Stansberry Research is hiring an analyst to lead our Innovative and Disruptive Technologies research efforts. We're looking for people with a genuine passion for finance and the investment industry.

The ideal candidate is curious, competitive, humble, and has experience identifying and evaluating innovative, disruptive technologies and trends. Your goal is to conduct meaningful, insightful research and to write for our publications. Formal experience is preferred but may not be necessary, depending on the candidate.

If you've ever wanted to make a living reading, writing, and thinking, please send us the following:

A basic resume. Tell us what you've done before. We admire people who aren't afraid of hard work or odd jobs.

A writing sample. Tell us about an investment opportunity related to innovation or disruptive technology. We're interested in the fundamentals of your best idea, not something based solely on charts.

For more information on this position, click here.

If interested, send your resume, cover letter, and writing sample via e-mail with the subject line "Innovative and Disruptive Technologies Analyst," to AnalystCareers@stansberryresearch.com.

New 52-week highs (as of 12/21/17): American Financial (AFG), Arch Coal (ARCH), Global X China Consumer Fund (CHIQ), WisdomTree Japan Hedged Equity Fund (DXJ), WisdomTree Japan Hedged SmallCap Equity Fund (DXJS), iShares U.S. Home Construction Fund (ITB), iShares Transportation Average Fund (IYT), JPMorgan Chase (JPM), Match Group (MTCH), NVR (NVR), iShares MSCI Global Metals & Mining Producers Fund (PICK), Potash Corporation of Saskatchewan (POT), iShares MSCI India Small-Cap Fund (SMIN), and Steel Dynamics (STLD).

In today's mailbag, we hear from a few thankful subscribers. We'd love to hear how you're doing this holiday season at feedback@stansberryresearch.com.

"Hey Stansberry Research gurus, Stansberry's Credit Opportunities was already my favorite publication. With the addition of the 'Golden Triangle' research, it is now really exciting.

"Incidentally, I have had no problem purchasing any of the bonds under recommended prices within a couple of weeks or even right after the recommendations come out using my Etrade account. It can be done online and usually takes about 10-20 minutes to fill the orders as the online orders are just a communication to the active bond desk traders. It is very clear what the ask price is and the how many bonds are available. Selling is also easily done online, but requires two steps of obtaining a bid and then executing a sell order if the bid is acceptable. It also can be accomplished in 10-20 minutes.

"Thanks for continually improving your content. It is more appreciated than I could ever express." – Paid-up Stansberry Alliance member Rick B.

Brill comment: You're welcome, Rick. And we're glad to hear you're as excited about our new Golden Triangle research as we are.

"Simply put... I became an Alliance Member a few years back and swallowed hard when I did. BUT... I had years of your proven track record to give me peace of mind in the final decision. Since then, you and your team have only demonstrated a conscious intention of providing more value and more refined resources. For this... thank you.

"I appreciate the Terminal and while I may not use all of it (the extra part that you can not provide for free since it is not your content) I am excited to see it and perhaps streamline all the various emails I get from the many letters I am part [of] to one main portal/terminal system.

"Either way... you and your team have earned my trust and respect, so I'm not concerned or worried in the slightest as I know you will always deliver more than I expect." – Paid-up Stansberry Alliance member DJP

"After about 8 years as an Alliance member, I trust Porter almost to a fault. I truly believe that he gives us what he would want if our roles were reversed. And I have made tons of money that I would not otherwise have had I not been an Alliance member.

"I am a retired 65-year-old and I do sometimes struggle with all the new technology at our disposal, but I trust that Stansberry [Research] has my back. I have 8 years of experience to validate my trust. If this new way of communicating with us is advantageous, as Porter thinks, then I am going to accept it with open arms. Thanks for a great relationship." – Paid-up Stansberry Alliance member Bill D.

"Porter – I have trouble believing that the angry letters you quote are real and not the kind that Dear Abby used to publish occasionally to engender excitement. If they did not understand from your announcement letter that nothing need change for them, they're too careless to get dressed in the morning, let alone invest. Tell us you are only trying to drum up interest in the new computers. As a very practical matter if you went back on your promise to your Alliance members, you'd be dealing yourself a body blow and you're not that dumb. Been here since the Pirate Investor days, enjoying and profiting, mostly, from all you do. Thanks." – Paid-up Stansberry Alliance member Pat F.

Brill comment: Thank you all for the kind words. And sorry to disappoint you Pat, but they're all too real...

"I have been on the fence about becoming an Alliance member. I am committing because of TradeStops and the Stansberry Terminal. Feels almost as scary as getting married – another commitment! Thank you for the opportunity." – (Newly) paid-up Stansberry Alliance member Michael Lew

Brill comment: No Michael, thank you. We know an Alliance membership is a major commitment for most folks. We're grateful for your trust and support, and hope to meet you at an Alliance conference soon.

Regards,

Justin Brill
Baltimore, Maryland
December 22, 2017