I’ve gotten a bunch of questions from readers about this “Bug” pitch, so we’ll dig into that teaser to star the week. This is the intro from Dave Forest’s latest Casey Strategic Investor ($49, renews at $129) teaser pitch…
“‘The Bitcoin Bug’
“A new bug could soon lock 70 million investors out of their Bitcoin wallets.
“But one company has come up with a solution.
“And it could surge as high as 473% in the coming months…”
Sounds a little scary, right? Locking you out of your wallet, a bug at the heart of the Bitcoin network? Whatever could it be?
And better yet, how are we gonna make money from that?
He goes through lots of chatter talking up this “bug,” here’s a taste:
“A new ‘bug’ has appeared at the heart of the Bitcoin network.
“This ‘bug’ has nothing to do with the usual attacks on Bitcoin’s volatility.
“Or its environmental impact.
“It’s infinitely more dangerous.
“And not only does it threaten to stop Bitcoin’s growth dead in its tracks…
“It could soon bubble over into the rest of the economy — disrupting the financial market… roiling the retail sector… and causing mayhem across the entire tech world.”
At this point it might be helpful to remember the cardinal rule of the teaser pitch: If something is in quotes, it’s a lie.
OK, perhaps that’s going too far. But know that when a copywriter puts it in quotes, what he means is “we don’t mean this literally, so please don’t sue us.” So no, there is almost certainly not some secret “bug” in Bitcoin itself that Dave Forest alone has discovered and chosen to highlight for Strategic Investor subscribers… it’s probably just a metaphor for some general problem impacting the future for cryptocurrencies.
And we throw in some fearmongering, too:
“… if this ‘bug’ isn’t patched in the very near future.
“Not only could it bring the growth of Bitcoin to a crawl…
“And put 70 million people at risk of getting locked out of their Bitcoin wallets…
“It could spark the biggest NASDAQ crash since the dot-dom bust…
“Triggering many of today’s most popular tech companies – from Apple to Tesla – to plummet.”Are you getting our free Daily Update
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So what is this “bug?” Really, it’s just his way of referring to the semiconductor shortages we’re seeing as the world continues to dig itself out of the COVID-19 shutdowns and transportation bottlenecks. Here’s where he comes clean on that…
“Massive demand has created a new chip shortage.
“And Bitcoin is at the heart of it all.
“That’s why I call it ‘The Bitcoin Bug.’
“It’s eerily similar to what we saw back in the late 1990s with the Millennium Bug….
“Bitcoin’s booming demand for these chips is now running smack-bang into the broader tech world, with disastrous results.
“WE’RE FACING WHAT MAY BE THE BIGGEST CHIP SHORTAGE IN HISTORY!
“Major news outlets have gone as far as calling it a ‘chipageddon.'”
So part of the problem is that there’s high demand for chips for Bitcoin mining, since that’s an intensive process and always requires the newest and fastest chips to win those mining battles… and part of it is just that demand for chips for bitcoin mining is but a (small, I’d say) part of the overall high demand for chips, causing demand to soar at a time when supply is having trouble catching up.
But that begins to lead into his tease about the specific savior here, our secret company…
“… this company has the world’s most critical chip locked up in a patent.
“You’ll see how this company holds the solution to patch the Bitcoin Bug….
“THE FUTURE OF OUR ENTIRE TECH-BASED ECONOMY HINGES ON THIS SINGLE TYPE OF CHIP OWNED BY THIS COMPANY…
“And that includes the $8.6 trillion banking industry…
“Over 4,000 cryptocurrencies…
“As well as the technology that po