This Trump-Backed Order Could Change Crypto Forever
The Weekend Edition is pulled from the daily Stansberry Digest.
I believe bitcoin will hit $1 million during our lifetimes...
That might sound extreme, but I've said it publicly before. Just consider, bitcoin's (BTC) value has increased from around $3,000 in 2018 to more than $100,000 today.
We've seen incredible advances along the way, such as decentralized exchanges... smart contracts that offer trustless lending and cash-flow opportunities... new innovations like non-fungible tokens ("NFTs")... and many other cutting-edge technologies built across decentralized finance ("DeFi").
That's why companies around the world are starting to use bitcoin and other cryptos. As I've reported to Crypto Capital subscribers, burger joint Steak 'n Shake is even having success using bitcoin as a payment network.
We've also seen bitcoin exchange-traded funds ("ETFs") launch. These ETFs saw more than $10 billion in trading volume in just their first three days. They've given traditional investors the chance to invest without having to actually hold bitcoin... all with the comfort of knowing that it's regulated.
Meanwhile, two of the world's most disruptive technologies are joining forces...
I'm talking about blockchain (the network powering cryptocurrencies) and artificial intelligence ("AI").
We're seeing more and more users, companies, and governments integrate both crypto and AI to help run their systems, process transactions, store records, and make major decisions.
Finally, the U.S. has its first pro-crypto administration...
On March 6, President Donald Trump signed an executive order to launch a strategic national reserve of government-owned bitcoin. And Trump's pick for the chairman of the Securities and Exchange Commission, Paul Atkins, has said that crypto regulation will be a top priority for him.
These are only the first steps toward Trump's goal of making the U.S. the "crypto capital of the world."
In short, bitcoin and the overall crypto market could soar in the years ahead – especially with some global economies starting to struggle and geopolitical tensions rising. Like gold, bitcoin represents a "safe haven" from the turmoil.
But don't just take my word for it. We have a range of estimates from the experts who watch this market...
ARK Investment Management CEO and Chief Investment Officer Cathie Wood estimates that bitcoin could be worth anywhere between $300,000 and $1.5 million by 2030.
A group of 25 crypto experts predicts bitcoin will reach $452,000 by 2030... and $833,000 by 2035.
Standard Chartered's Head of Digital Assets Research Geoff Kendrick estimates bitcoin could be valued at $300,000 by the end of next year.
And Strategy's Executive Chairman Michael Saylor expects bitcoin to reach $13 million by 2045.
Obviously, these estimates differ. But they all predict bitcoin will rise dramatically.
That's why I want to help as many people as possible buy bitcoin before it soars...
Since its inception in 2009, bitcoin has outperformed every other investment. It's difficult to calculate bitcoin's total compound annual growth rate ("CAGR"). The number is just too big.
And now, one crypto project is making it easier and more cost-effective to buy bitcoin... with mortgages.
That might sound surprising. But just as most of us have used home mortgages to build wealth and hedge against declining purchasing power, bitcoin mortgages allow investors to buy the crypto with future (possibly deflated) dollars.
Just as easily available mortgages rapidly increased the number of homebuyers, I expect crypto mortgages to increase the number of crypto buyers.
In 1934, the U.S. government changed the way Americans buy houses...
Prior to the 1930s, mortgage loans were largely private affairs, without federal oversight or insurance. Their terms were strict. Borrowers were often required to make large upfront payments, and the remaining balance was typically due within a very short span.
The 1934 National Housing Act changed all that. It paved the way for the government to create the Federal National Mortgage Association ("FNMA") in 1938.
FNMA buys and holds loans that meet its strict criteria. And by selling the "paper" to FNMA, the banks and firms that issue mortgages can receive their funds and lend again immediately.
After FNMA's launch, down payments could be as low as 3.5% of the loan's value. Loans were amortized and lasted 15 to 30 years. Interest rates were fixed.
And importantly, more people than ever could get a mortgage. The homeownership rate went from less than 50% before 1934 to nearly 70% by the late 1960s. Take a look...
For many Americans, their home is their most valuable asset. The National Association of Realtors says the value of most Americans' homes exceeds the rest of their financial assets by 10 times.
But in today's world, we're often seeing digital asset ownership that could surpass the value of our homes...
That's why many people see digital assets like bitcoin as a way to build wealth. But like homes before the proliferation of mortgages, most crypto purchases have required cash up front.
That is, until now.
As I've shared with my Crypto Capital subscribers, we've uncovered a platform that lets investors, traders, speculators, and even long-term holders buy bitcoin (and, one day, other cryptos) with up to a 30-year mortgage and as little as a 2% down payment.
Eventually, when bitcoin is held in national and corporate Treasury securities, investors who want to own bitcoin will increasingly turn to these loans.
How big can this be?...
Home mortgages created trillions of dollars of wealth. I believe digital asset mortgages will do something similar. They should allow buyers to lock in lower bitcoin prices as the asset continues to hit new all-time highs.
Just consider... the total U.S. housing market is worth around $50 trillion. Americans owe nearly $13 trillion on 85.1 million home mortgages.
Bitcoin is currently worth more than $2 trillion in total... while the current bitcoin mortgage industry is only worth $427,000. So there's a lot of room to grow.
And just like with a home mortgage, while you might own the bitcoin, you're not free and clear until you've made your last payment. But just like owning a house with a mortgage, all the upside is yours.
This concept might sound far-fetched. But we're entering this new reality...
Here's what the Trump administration has done for crypto lately...
Last month, Congress passed the GENIUS Act, a landmark law establishing a regulatory framework for dollar-pegged stablecoins. It requires issuers to hold 1-to-1 reserves in liquid assets like U.S. dollars or Treasury bills and disclose reserve compositions monthly.
And it's already attracting new investors, particularly in underbanked regions.
But now, something else exciting is happening... Crypto holdings may soon help you buy a house.
In June, the director of the Federal Housing Finance Agency ordered Fannie Mae and Freddie Mac to develop proposals to consider crypto holdings as assets in mortgage originations.
In other words, the organizations backing most of America's residential mortgages could officially recognize cryptos as a part of people's net worth.
It may not feel like it, but we're in a blockchain rally...
When Trump was elected, bitcoin surged past $70,000... and it reached $123,000 last month. Even more, the entire blockchain universe is on the rise. Total crypto market capitalization is up more than 30% year over year.
We're now at an exciting convergence...
Real-world assets such as real estate, private credit, and even Treasurys are seeing their ownership and value moved onto the blockchain. And entrepreneurs are creating ways to buy digital assets via payments... just like you'd use a mortgage to buy a house or a loan to buy a car.
By "tokenizing" real estate assets, blockchain platforms allow fractional ownership and streamline title transfers. That reduces costs and middlemen. And it's making everything easier.
This rally, fueled by growing institutional interest and retail-investor enthusiasm, mirrors the transformative impact of the 1934 National Housing Act, which democratized homeownership.
As blockchain adoption accelerates, mortgage markets could become more accessible.
And conversely, by mortgaging digital assets, more people could buy low-inflation blue-chip cryptos and pay them off with dollars that are continuously losing value.
With all these factors in place, the current blockchain rally isn't a blip or a bubble... It's the start of a financial revolution that will drive the values of bitcoin and many other cryptocurrencies to new heights.
Good investing,
Eric Wade
Editor's note: After firing one of former President Joe Biden's appointees and replacing another, Trump now effectively controls the Federal Reserve. And his next move could go even further, triggering "the biggest trade in U.S. history." It could all go into effect on Tuesday, September 9... which is why Eric – who was in the room when this plan was discussed – just released an emergency briefing with all the details.