The most important rule I’ve learned over my 32-years of covering financial markets is this: In tech investing, usage drives value.
It’s called Metcalfe’s Law, and it states that the bigger the network of users, the greater the value of the network.
There’s no value in a telephone network if only one person has a phone. If a second person gets a phone, the network becomes a little bit more valuable. But if everyone has a phone, the network becomes extremely valuable.
And when Metcalfe’s Law really kicks in…
It’s like a barrel of TNT… on top of a crate of nitroglycerin… on top of 100 tons of weapons-grade plutonium… exploding usage higher and higher.
Take Amazon, for example. The network effect triggered enormous growth for the tech giant.
As more and more people signed up for its Amazon Prime premium membership, its share price climbed from around $300 in 2014 to a recent high of over $3,700.
That’s a 10x gain in just a few years.
You can see this in the chart below…
The same thing happened with Google.
Over the last decade, as more of the world went online and discovered Google, its search volume exploded from around 2 million searches a day to over 25 million.
And look what it’s done for Google’s share price…
Google was trading for as low as $128 in 2008… and it hit over $2,900 per share this year. That’s an incredible 2,166% gain.
The bottom line is that more usage equals more profits…
And we’re about to see a usage “Hyper Boom” in the adoption of another technology: crypto.
A Hyper Boom in Usage
Based on my research, we’re about to see an explosion of crypto adoption on a scale we’ve never seen before.
I believe this unprecedented wave of new crypto holders will unleash a Hyper Boom of usage unlike anything we’ve seen in the 12 years that cryptos have been around…
That’s because what’s happening right now can ONLY happen once…
You see, the adoption of crypto is tiny compared to other technologies. It’s just 200 million people out of a total addressable market of more than 5 billion internet users.
But according to fintech analytics company Portfolio Insider, the current bitcoin adoption rate has been outpacing the internet’s user growth rate… And it will reach 1 billion users within the next four years.
That’s nearly two times faster than it took the internet to reach that landmark.
But what excites me most is the number of major U.S. financial firms offering crypto services to their clients. Just look at the number of people they could potentially bring to this emerging asset class:
Wells Fargo: 70 million
Bank of America: 66 million
JPMorgan Chase: 55 million
BNP Paribas: 33 million
Deutsche Bank: 24 million
Morgan Stanley: 8.2 million
In total, banks with a combined 300 million checking accounts are coming on board.
And for the first time, customers of hundreds of U.S. banks will soon be able to buy, hold, and sell bitcoin through their existing accounts.
But it’s not only banks getting into crypto. Credit card companies are starting to bring crypto to their platforms, too. This influx of potential crypto users is massive.
Visa recently launched crypto-linked cards that make it easy to convert and spend cryptos at 70 million merchants worldwide… and it’s been a huge success. Visa has 3.3 billion users.
Mastercard is also offering a card option to people wanting to spend their digital assets anywhere Mastercard is accepted. That’s another 975 million potential users.
And we’re also seeing big tech finally get serious about offering bitcoin on their networks.
Amazon is looking for a crypto expert to lead its payment-acceptance team… a move that could bring in as many as 300 million users if the company starts accepting bitcoin.
Twitter is also embracing bitcoin… That’s another potential 330 million users.
And Square could bring in as many as 210 million users.
All in, we are looking at more than 5 billion potential new users about to come into bitcoin.
We’ve never seen a tsunami of new users coming into crypto like this before.
And bitcoin is what I call the “gateway drug” to the rest of crypto. Of all these new people coming into bitcoin, many will filter into other smaller coins.
And because these coins are much smaller than bitcoin, they are much more sensitive to changes in usage…
That’s where my “Catch-Up Coins” come in.
The Next Wave of Blockbuster Cryptos
The next wave of blockbuster crypto projects will help bitcoin and Ethereum reach the billions of people coming in from the Hyper Boom.
They’re doing that by adding safety features… interoperability… and simpler user interfaces to the world’s two biggest blockchain networks.
And because they’re partnering with larger projects, they’re already seeing immediate increases in their usage.
Remember, usage drives value. And where I see the most usage right now is in Catch-Up Coins.
I call them Catch-Up Coins because just one of them can represent an entire lifetime of wealth creation.
For instance, $1,000 invested in my past Catch-Up Coins when I recommended them would have grown into as much as… $151,000, $357,000, $484,700, and even $1.5 million in as little as 10 months.
Friends, you can only go from 200 million users to 5 billion users once. The Hyper Boom in new users coming into crypto will ignite the biggest rallies we have ever seen in crypto’s short 12-year history.
An influx of new users like this can propel the value of these coins to levels they’ve never seen before.
The key is to get into them now before the Hyper Boom really takes off… So take advantage of the recent pullback in the crypto market to scoop them up at an even deeper discount.
You can learn more about my Catch-Up Coins right here. Plus, you’ll get the name of my No. 1 Catch-Up Coin for free.
Let the Game Come to You!
Editor, Palm Beach Daily