Bitcoin Is Officially Older Than The Fiat Era Stock Market

Today’s letter is brought to you by Unbound Golden Visa!

What if you could use Bitcoin as a tool to unlock future freedom for you and your family? Well, now you can. m

Unbound is the Portuguese Golden Visa Fund that invests in local companies 100% owned by the fund, which in turn invest in Bitcoin via SEC-compliant ETFs.

The Portuguese citizenship by investment program is the top European choice. With extensive experience, the team facilitates EU citizenship, unlocking freedom across 27 countries.

This incredible offering went viral receiving hundreds of applications in 48 hours. I recently spoke with co-founder Ale Palombo about this initiative here.

To unlock your future visit Unbound’s website or simply write to [email protected].

To investors,

The world changed on August 15, 1971 — President Nixon implemented a number of changes to the US economy in response to high inflation. These changes became known as the “Nixon shock.”

Changes included:

* Wage freezes

* Price freezes

* Surcharges on imports

* Cancellation of international convertibility of US dollars to gold

The Nixon shock kicked off a new era for the United States — the fiat currency regime had begun.

Since that day, the US stock market has been open for trading in just over 100,700 hours. That may seem like a useless data point, but Cory Bates points out something interesting happened this year that made the fiat era US stock market hours of operations noteworthy.

Bitcoin, which was only launched in 2009, officially eclipsed the US stock market in terms of hours of trading. Bitcoin now stands at more than 123,000 hours of trading, which is nearly 25% higher than the fiat era for public equities.

There are two takeaways from this information — first, it is insane that the US stock market is closed more hours per week than it is open. It is quite eye-opening that bitcoin, which started public trading less than 15 years ago, has been more accessible than public equities in the last 50 years.

Second, you could argue that bitcoin is older than the fiat era stock market. The digital currency may not be older in terms of total years, but it is definitely more mature in terms of trading hours.

Some people will disagree and likely claim that the US stock market dates back to before 1971. While that is true, the regime change in the Nixon shock is all that matters in today’s stock market.

Why is the Nixon shock mainly what matters? The US stock market gains are largely driven by fiat debasement. The more the dollar is devalued, the faster the stock market accelerates.

How can you tell? The CME Group has two great charts highlighting (1) gold’s relative performance to equities and (2) the US stock market denominated in gold.

Let’s bring this back to my main point — the US stock market materially changed in 1971 even though Nixon didn’t explicitly predict it. If you take the market since this new era started, it has traded less hours than bitcoin.

Bitcoin’s robust system has been tested more than the US stock market. That statement will put the legacy finance folks’ brains in a blender. But it is true.

The only time a system is tested is when it is in use. Bitcoin’s market has been used more than the fiat era stock market. That is a narrative that should be spread far and wide.

Hope you all have a great start to your week. I’ll talk to everyone tomorrow.

-Anthony Pompliano

Founder & CEO, Professional Capital Management

Reader Note: BUILD Summit, our annual conference in NYC for founders, is coming up next month on September 26th.

The event will provide top tier speakers, networking opportunities, and insightful business discussions on raising capital, scaling businesses, and building products.

Current speakers include angel investor Balaji Srinivasan, Khosla Ventures’ Keith Rabois, Perplexity CEO Aravind Srinivas, Eight Sleep Founders Matteo Franceschetti & Alexandra Zatarain, and Passes CEO Lucy Guo.

The event is free to attend and will be full of insights on how to operate a company at world-class level.

Phil Rosen, the Co-Founder of Opening Bell Daily, and Anthony Pompliano, CEO of Professional Capital Management, discuss why stocks and bitcoin are down, economic policies for Trump & Kamala, proposed capital gains tax increase, and outlook on asset prices during interest rate cuts. 

Listen on iTunes: Click here

Listen on Spotify: Click here

Why Bitcoin and Stocks Have Been Crashing

Podcast Sponsors

* Gemini is the safe and secure way to trade crypto. Use code Pomp100 and start trading crypto to earn $100 in BTC. 

* Xapo - Xapo Bank is the only way to bank with Bitcoin. 

* CrossFi is the Apple Pay for Crypto. For the first time in history, anyone with a web 3 wallet can spend crypto through a physical or virtual Visa card where Visa is accepted.

* Domain Money makes financial planning straightforward and accessible.They tailor plans to your personal priorities and goals, whether it’s buying a house, funding college, or taking that dream vacation.

* iTrustCapital allows you to buy and sell cryptocurrency in a tax-advantaged crypto IRA. Open and fund an account today to receive a $100 USD funding bonus.

* ResiClub - Your data-driven gateway to the US housing market.

* Professional Capital Management - Anthony Pompliano’s asset management firm is now on Linkedin. Please subscribe by clicking here.

You are receiving The Pomp Letter because you either signed up or you attended one of the events that I spoke at. Feel free to unsubscribe if you aren’t finding this valuable. Nothing in this email is intended to serve as financial advice. Do your own research.

This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit pomp.substack.com/subscribe