On this episode of Market Insights, Coy and Patrick talk about our special offer to convert your bitcoin into gold AT COST—only from U.S. Money Reserve!
Should You Stay In Bitcoin?- Video Transcription
Coy Wells: 00:00
Today, we're sitting here with Mr. Patrick Brunson and today we're going to continue our segment on bitcoin and the volatility that in lies in that sector. A couple of weeks ago, Mr Brunson talked about bitcoin and some of the sectors that are in trouble and why they're affecting the market. And we're going to do right now is have him kind of do a short recap on the volatility that currently sits in bitcoin. Ms. Brunson, can you kind of go over some of the details you talked about with us last time? Right, so one of the biggest issues that we've seen with bitcoin is that it went into a parabolic rise in December of 2017 and then it more than crashed by 80% over the course of the following 15 months. So this has been a big issue for some people because a lot of consumers got into bitcoin when everybody was going crazy about it. Bought in at the highs at 8- 10,000 an ounce or 8- 10,000 a Bitcoin, I should say.
Patrick Brunson: 00:51
And then when they saw it get to 20,000, you had a bunch of people pull the rug out from underneath all the other people involved with bitcoin. So some people refer to it as a pump and dump. It's been happening a lot with cryptocurrencies. Um, but the biggest thing is getting out of it. There's a lot of people who are in a big, big loss with bitcoin right now and to expect it to go all the way back up to $20,000 a bitcoin. I just don't see that happening. Yeah. For it to lose 80% and then for it to recover to go back up to $20,000 would be pretty impossible. I am not saying that it's not impossible but it'd be very difficult to do at this point in time. The other thing that we've been watching, uh, collectively here is, is that we've noticed that countries that initially when it was rising rapidly, uh, they were wanting to be involved with and it, they were looking at it and taking it and accepting it as a form of currency.
Coy Wells: 01:42
And now we're seeing countries saying, ah, now that it's lost all its luster, they're all kind of pulling back from not using that. So with that being said, a consumer that's holding on the bitcoin now, uh, what would you say the best recommendations, if countries aren't wanting to use it, some countries are banning it altogether. It's lost it's luster. Do you think it's advantageous or wise for consumers to stay in that market or do you think it's time for them to get out now? I would say get out. If you've made money, good. Congratulations. But it's time to get out. That's what a lot of experts are telling us now. The reason why we're seeing so many countries move away from it when they were first entertaining the idea is because hackers have really flocked towards cryptocurrencies. Uh, we've seen a lot of different companies just here in the United States, had their entire system shut down and completely frozen and encrypted with the ransom payment in bitcoin from the company to get those encrypted files unlocked.
Patrick Brunson: 02:45
They call it ransomware. So you know, they basically send a virus into your company's computer system, like an insurance company or a bank and it will encrypt all of the files, basically locking everything that your company relies on in terms of technology. And then they asked for x amount of dollars in Bitcoin in order to get the encryption codes to unlock all those files. And it has cost a lot of companies, you know, millions of dollars. Some companies weren't even able to recover from it. So there's a lot of risks there, especially being that it's not regulated currency. Right. And with some of the segments we've had, we've asked consumers to call in and talk about how they had the ability to be able transfer out of bitcoin into other safe assets such as gold. One of the, a few of the phone calls that we've encountered is, is we've had consumers that have tried to buy other assets and it's done through email, right.
Coy Wells: 03:36
It's an e-mail confirmation. It's kind of like an ACH but it's done through via email to transfer the funds from left to right. One of the concerns from a lot of consumers when they've tried to make transactions: If their email is off, say they're manually typing it in and it's off by one letter or one digit, that fund is being withdrawn, but it's not going to the allocating company or corporation. So what happens then is that the money is lost and they're unable to go back and retract that money. Like an ACH goes to one bank and you change your mind, you can retract that money, right? Where with bitcoin or some of these other cryptocurrencies, they don't have the ability to do that. So the reason being is because if you go into a coffee shop and you buy a cup of coffee with your debit card or your credit card, the bank is facilitating those transactions.
Patrick Brunson: 04:18
The Bank of the, of the coffee shop and your bank that you bank with. With bitcoin, there is no middleman at all. It's one person transferring one currency to another person. And if the digit is off by one person, that money you were supposed to send to me, just went to a totally different person and it's virtually impossible to get that money back. Right folks, so you've heard it from both of us. The key element right now is and the consensus is if you have money sitting in Bitcoin, that's at risk right now with all the volatility that we've seen over those since December of 2017 is to get out of bitcoin. I'm Coy Wells with US money reserve and right now US money reserve is offering $500 of gold at costs for every 5,000 in precious metals purchase for customers paying with cryptocurrencies like bitcoin. Call the number on your screen, or click the YouTube link to get more information or to speak to one of our associates about your portfolio today. Again, I'm Coy Wells with US money reserve market insights. I'm Patrick Brunson and thank you for watching.