Bitcoin and the Real Estate Cycle

[Cycles Trading With Phil Anderson]( Welcome to Cycles Trading with me, Phil Anderson. My aim with this three-day-per-week e-letter is to introduce you to the most powerful knowledge for building wealth. And that’s the 18.6-year real estate cycle and its key relationship to stocks. Every 18.6 years, property, economy, and stock markets move through a repeating series of peaks and troughs – like clockwork. And the market has followed this cycle for over 200 years. Using this knowledge, I’ve been able to forecast every major market move over my 34-year career. If this is your first time tuning in, catch up on my[background]( how I [predict the markets]( and how I’ll help you avoid [false alarms]( from the mainstream media. Bitcoin and the Real Estate Cycle By Phil Anderson, Editor, Cycles Trading with Phil Anderson Bitcoins seems to have the promise of becoming an alternative money in the future. It’s up 61% since the beginning of the year. You can’t ignore price movements like that. But I’m more interested in the blockchain as a technology that can disrupt business processes, just as other current technological advances are doing: machine learning, artificial intelligence, the internet of things and so on. One industry that is ripe for disruption is property… which is my expert domain. I was at a conference some time ago where this topic came up: the blockchain is starting to establish things like fractional ownership of dwellings, and one day, because of its secure ledger foundation, it could make closing times much quicker (hours as opposed to the current weeks of torture, as any homeowner will know). I thought it might be interesting to look at what is going on in the context of the economic and real estate cycles because of the novelty. I also promise there are some very old lessons to be applied to your investing. First, let’s start with a basic question: what is money? Recommended Link [Why Do Hedge Funds and Billionaires (Including a Forbes Top 40 Richest) Pay This Man Between $5,000 and $10,000 A Month for His Emails?]( [image]( It reads like a who’s who of international finance and power… A billionaire Forbes once ranked within the 40 richest in the world… Two of the top 10 best-performing hedge funds of 2022… A billionaire in the alternative media space. They all turn [to one man]( for his daily (and often uncanny) forecasts of the market. Paying dearly for the privilege. But, tomorrow, this “advisor to the advisors” is going public with a new prediction... [You can see it for yourself (and reserve your spot) by clicking here.]( -- What Is Money? This is where the staunchest supporters of bitcoin are clearest: bitcoin provides the promise of an alternative, efficient (albeit energy-intensive and complicated) money that transcends borders and policymakers’ rules. This narrative is so promising that it has forged an unlikely alliance of support from older libertarians and younger millennials. If there’s any doubt about the power of a good story in relation to investment returns, here’s your proof. Robert Shiller, a Nobel Prize-winning economist, has written an interesting book on the importance of story: Narrative Economics: How Stories Go Viral and Drive Major Economic Events. Check it out. I’m not saying that the idea behind bitcoin as money is somehow fictitious. It’s just important to acknowledge how much interest in it is linked to the power of a good story. It’s important for me to emphasize here that one of the most misunderstood ideas in economics and finance is what the nature, role, and function of money is. Since money is important to the bitcoin story, I ought to point out that this mistaken thinking has been used by its most knowledgeable proponents. Money is simply a generally accepted means of settling credit balances. [Chart]( Settling Credit Balances Let’s take an example. As I write these words, I’m providing a service to my publisher. Since I am not getting paid for a few days, my work has generated a positive credit balance. At some point, my publisher will settle this balance by instructing its bank to mark up the account I have by an amount that reflects the value we have agreed my writing is worth. Taken on its own, this positive credit balance is useless to me. Just numbers on a screen, or if I want, paper with a former U.S. president’s head on it. But it’s what I can do with it that counts. For example, my cleaning lady comes to my flat for a couple of hours to dust shelves, mop the floor, vacuum, and generally tidy up my living space. When she finishes each time, via my phone I would instruct my bank to pass some of my bank balance to her account (or I could go to a local cash machine to do the same thing). Effectively I had taken the credits I had from my publisher, received for something they wanted (my writing) and exchanged it for something I wanted (cleaning services). The role of money is to efficiently facilitate this sequence of exchanges so two people can swap their labor so that they are better off, regardless of what each party wants. Money is also needed because the variety of products and services we create have different production timescales – it takes two hours to clean my flat, but it takes a month for me to produce a report. And some products take much longer: building a bridge, for example. Money facilitates the exchange of cleaning, writing, and bridge building. The physical or digital item that is used for this exchange needs to be accepted as a means of settling these balances by as many people as possible, otherwise this process would not work very well. The “generally accepted” nature of money I referred to above is critical to its function. Now that we have established what money is, we can discuss how banks fit into this relationship of “credit balances.” I’ll bring you that in another article this week. Stay tuned. Eventually, you’ll be able to think of bitcoin better than anyone in the markets. Regards, [signature] Phil Anderson Editor, Cycles Trading with Phil Anderson IN CASE YOU MISSED IT… [Here’s how you could gain financial freedom in 2023]( Master Trader Jeff Clark achieved financial freedom at the young age of 42. He profited through the massive stock market crashes in 2000, 2008, and 2020 and helped thousands of people, from teachers to doctors, achieve financial freedom… some starting with as little as $100. [Watch his video here and get the name and ticker of the One Stock too.]( [image]( [Rogue Economincs]( Rogue Economics 55 NE 5th Avenue, Delray Beach, FL 33483 [www.rogueeconomics.com]( [Tweet]( [TWITTER]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Rogue Economics welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-800-681-1765, Mon–Fri, 9am–7pm ET, or email us [here](mailto:memberservices@rogueeconomics.com). © 2023 Rogue Economics. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Rogue Economics. [Privacy Policy]( | [Terms of Use](