No matter how much bitcoin continues to defy its critics… I still get plenty of emails from readers worried something will kill off this established asset. I call it an established asset because you can’t call something that’s worth a trillion dollars an emerging asset.
And yet, most people treat Bitcoin as an emerging asset.
I get it.
The crypto ecosystem is still a baby compared to the internet. It’s only about a decade old. So, there’s a lot of misinformation out there… especially at the regulatory level.
And that’s where most of the concern I hear from my subscribers comes from.
A lot of government officials are talking nonsense about this asset class. Either they don’t understand it, or they fear it… or both.
The biggest example is Securities and Exchange Commission (SEC) Chair Gary Gensler.
Last week, Gensler spoke at a Congressional hearing on cryptos. And while he said the SEC has no plans to impose a China-like ban on crypto… he does consider most tokens to be some form of security.
So does this mean the SEC will designate the nearly 10,000 different cryptos as securities?
Sure, the United States could make cryptos illegal as China did.
But I believe such a prohibition would be unenforceable given the decentralized nature of the blockchain.
True, in the centralized world of finance, the SEC can bend individuals and companies to its will with threats of sanctions and fines.
But it can’t sanction software… And that’s what’s running at the heart of the crypto ecosystem.
That’s the beauty of the blockchain. It’s completely decentralized and facilitated by thousands of independent computers worldwide. So there’s no singular individual to “punish.”
Trying to ban bitcoin would be the most unintelligent and misguided act since alcohol prohibition. The SEC is smart enough to know that. That’s why I don’t believe we’ll see a ban.
I want you to always remember why crypto will not be banned: Wall Street greed.
Faster Than the Internet Boom
When it comes to investing in a new asset class, only one number matters to me: Adoption rate.
And crypto’s rate of adoption continues to outpace any comparable measures…
You see, the current number of crypto users 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’s on pace to reach 1 billion users within the next four years.
That’s nearly two times faster than it took the internet to reach that landmark. I want you to really ponder that. It’s growing twice as fast as the internet. That’s remarkable.
What excites me most is the number of major brokerages and financial firms offering crypto services to their clients…
Just look at the number of people they could potentially bring to this emerging asset class:
This month, investment platform Public.com announced it was rolling out bitcoin trading to its more than one million customers, allowing them to buy and hold stocks, ETFs, and cryptocurrencies.
In September, PayPal expanded crypto trading access to its over 20 million U.K. customers… a follow-up to its November 2020 U.S. rollout.
And trading platform Robinhood announced its testing crypto wallets with select users, with plans to eventually roll out the service to all its 31 million customers.
These three examples add up to more than 50 million potential crypto customers… roughly a quarter of crypto’s current userbase.
So in about a year, we could potentially see a crypto user explosion of nearly 25%… from just three companies expanding crypto access. And they won’t be the only ones to do so…
Just think about it. For years, global institutions said, “You were an idiot to buy bitcoin.”
Think about all the money they took out of people’s pockets who wanted to buy bitcoin when I recommended it at $428.
All the people who listened to bitcoin critics like JPMorgan CEO Jamie Dimon… Bank of America… and Citigroup…
People who lost an opportunity to make millions of dollars off a small $1,000 to $2,000 investment… and all because they listened to the so-called “experts.”
But I can’t blame them…
Even the Financial Times said, “Bitcoin sounds interesting… But if all these smart guys are saying this is dumb, then I should listen to them.”
It’s incalculable how much money was lost due to the banks and institutions being so wrong. Yet, today, these global financial institutions are now some of the biggest backers of bitcoin.
Too Big for Banks to Ignore
Here’s the thing about banks: They pray to one god… And that’s the god of money. End of discussion.
Now that bitcoin’s market cap is once again over $1 trillion, and the entire crypto market is $2 trillion, they can’t ignore it. They’re watching companies like Binance, FTX, Coinbase, and Kraken make untold billions of dollars in profits…
And they want a piece.
It’s why U.S. Bancorp – the fifth-largest bank in the United States – just launched a custody service for investment managers…
It’s why $80 billion Brazilian investment bank Pactual has announced it will enable direct bitcoin investment options to its customers… the first Brazilian bank to do so…
And it’s why Bank of America recently opened a new digital asset division…
In its announcement, Bank of America said, “The market capitalization of digital assets, now sitting at over $2 trillion, surpasses the GDP of many countries. It is a blossoming asset class that has become too large to ignore.” (Emphasis added.)
And that’s exactly what I said five years ago.
There’s too much money being made in crypto. And the market is too big for firms like Bank of America to not have a piece of it.
Bitcoin Rallies in the Face of Negativity
We’ve seen a lot of negative news about bitcoin in the past six months…
China banned crypto mining and transactions… And Jamie Dimon came out again and said he believes bitcoin is worthless (despite JPMorgan expanding crypto trading to its clients this past July).
Yet, bitcoin continues to rally in the face of this negativity.
That’s why I say bitcoin has reached escape velocity. It’s a world-class asset now. And no amount of jawboning by government officials or Wall Street elitists will change that.
The key takeaway is this: Don’t worry about the negative news.
The SEC won’t ban crypto. Will it regulate it? Sure. I expect to see some regulation of this asset class… But much of that will be a good thing because it will allow more regulated money to come into the crypto market, making it boom even more.
Friends, the crypto genie is out of the bottle, and there’s no putting it back.
At its current pace of adoption, crypto usage will soon rival the internet. And as cryptos are integrated into the global financial system, we’ll see big banks defend them from government overreach.
All you have to do is look at the massive rate of adoption and bet on Wall Street’s greed and pervasive political influence. Think about it; in 2008, the “Banksters” crashed the global economy, bankrupted a third of America, made billions in the process, and no one went to jail.
With the amount of money at stake for the big banks, you can see why the U.S. government will never ban bitcoin. There are too many powerful people getting obscenely rich from it.
If you own bitcoin, enjoy the ride higher. And if you don’t… consider adding some exposure today. I believe it still has at least 10x upside from here.
Let the Game Come to You!
Editor, Palm Beach Daily
P.S. As more investors and bank customers are swept up in the mass adoption tsunami, even some of the smallest cryptos will see massive returns.
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