People see big scary headlines, and people jump to wrong conclusions. That’s a huge reason why we’re subject to the day-to-day nonsense that rocks markets and obscures the real trends that matter – the ones that will decide who wins and who loses in the long run.
Cryptocurrency is probably impacted by this phenomenon most of all, leading investors to conclude crypto is over the hill, past its peak. Yes, prices are much lower than they were in 2021, and that sounds bad until you remember the entire crypto market – every single coin out there – only adds up to about $1 trillion.
That’s a big number to you and me, but it’s absolutely miniscule in terms of the other asset classes out there – like the $97 trillion global stock market, the $126 trillion bond market, or the $326 trillion real estate market.
And yes, I said “other asset classes.” Crypto is an asset class – the newest of all. It’s the first truly new asset class since the English invented sovereign bonds in the 1690s.
Crypto investors today are like the very first people to own stocks or bonds – and this is an incredible opportunity.
In fact, it might just be the last asset class, too – one final chance to get ahead of the game and strike it rich. Here’s why…
Crypto Will Come for Gold First
You can’t resist comparing crypto to gold – which is for all intents and purposes a “dead” asset that’s not going to see much more growth at all. And I say this as a guy who used to love gold; I actually sold some of my gold stash to buy my first Bitcoins. Gold sure looks pur-ty, and you can use it for certain electronics applications, but that’s about it. It’s a hassle to own and move around, and it’s hard to use it to buy bread or toilet paper. And yet the value of all the gold that’s ever been mined is a whopping $11 trillion.
Crypto, which is a better store of value, can – and will – 11X from here, easily, just on the basis of its potential applications alone. It has virtually limitless technical possibilities to facilitate machine learning, trade and commerce, increase access to financial services and credit, make government more efficient – applications we haven’t even thought of yet.
There’s no way in hell crypto has peaked at $1 trillion. You can’t convince me that all of that combined will never be worth at least as much as just gold. Things may be down from 2021, but that’s got nothing to do with crypto itself.
But you want to know why crypto is down now. Well…
Here’s Exactly Why Crypto Is Down Now
What we’re seeing in the crypto market is the end of a speculation boom. During the height of pandemic, when people were crazy with boredom and fear, and flush with spare time and stimulus cash, they started speculating like mad on anything they could. There were no sports for months. In mid-2020, the absolute red-hottest bet in all of sports was “Will there be a World Series and who will be in it?”
And that’s over, of course, and now the crypto market is right about where it was during 2017. It’s dealing with the fallout of the collapse of the speculative boom – the market is cleaning its own house of scammers and shady operators. Crypto’s also facing macro challenges driven by the rest of the broader market. These have nothing to do with the merits of crypto itself. It’s just one of those times when everything is under pressure together.
When, not “if,” crypto becomes worth as much as gold, that’s a 10x gain. If you start with $10,000 and end up with $100,000, that’s not “never work again” money, but it can definitely change your life.
Between 2016 and 2017, I took my own account up by a total of 130x, altogether. Turning $10,000 into $1.3 million is definitely going to change someone’s life. But from 2018 to 2021, I multiplied my account by 28x. Even turning $10,000 into $280,000 is going to make a huge difference.
And I’m convinced it’s going to happen again and again as the world wakes up to a brand-new asset class, with every ounce of the potential (and then some) of stocks, bonds, and real estate.
