In yesterday’s Daily, I told you how I delivered six decades of stock market gains in less than six years in my flagship Palm Beach Letter.

As proud as I am of those results and the gains they’ve produced for my readers… that’s in the past.

Today, I want to tell you about my three biggest investment ideas for 2022 and beyond. I believe they’ll create generational wealth for those who position themselves early.

Trend No. 1: Bitcoin and Crypto

When I first started talking about blockchain in 2016, people called me crazy. But that’s because they didn’t understand just how groundbreaking this technology would be.

Time has proven me right. Today, crypto is a $2+ trillion asset class. But this is still just the beginning.

For instance, the market cap for gold is $11 trillion… for bonds, it’s $119 trillion… for equities, it’s $120 trillion… and for real estate, it’s $326 trillion.

Just to match the market cap of gold, bitcoin would need to 11x from here. So there’s still plenty of upside left.

And while the amount of institutional money coming into crypto has grown exponentially… it’s still just the tip of the institutional iceberg.

Only a fraction of the $145 trillion institutions are allocating to traditional asset classes has found its way into crypto.

So as much as you think that FOMO (fear of missing out) has already hit this asset class, it hasn’t. But it will. And it could start over the next three to six months.

And it all has to do with an event I call the “Final Halving.”

I predict bitcoin will reach $500,000 within five years. And when it does, we’ll be able to trace it back to this event.

But the Final Halving isn’t tied to bitcoin’s code… It’s tied to the actions of bitcoin miners and bitcoin reward credit cards, and I believe it’ll knock the available new supply all the way down to zero.

Let me explain…

Miners provide the computing power necessary to run the bitcoin blockchain. They solve complex equations to verify transactions and keep the network humming along.

The incentive for devoting their time and processing power is a daily bitcoin reward for their efforts. But miners have suffered from a persistent problem. No traditional financial firms would fund their growth.

Until recently bankers across the globe wrote bitcoin off as currency of criminals and terrorists… leaving bitcoin miners without access to traditional sources of capital. This forced miners to sell their bitcoin in order to fund their operations.

But we’ve seen crypto adoption take off significantly over the past few years. And huge players like Morgan Stanley, Goldman Sachs, and MassMutual are taking notice.

One after another, these big institutions are now coming into crypto. And that means for the first time, miners can raise money through the capital markets by issuing shares (equity) or bonds (debt).

We’re moving to a world where bitcoin miners will no longer have to sell their bitcoin to fund their operations. And that’s going to change everything.

This year, crypto companies have already raised 10 times more capital than all of last year. So miners don’t have to sell all their bitcoin anymore. They can hoard it.

Based on my research, this hoarding will reduce the new bitcoin supply coming to market by 98.2%… so what about the other 1.8%?

That’s where the unprecedented demand from credit cards comes in…

Many credit cards have started offering bitcoin rewards. With Visa, you can now get up to 2% back in bitcoin. And with Mastercard, you can now get up to 3% back.

This is a huge source of demand no one is accounting for. No one has added it to their bitcoin price models.

And this brand-new type of demand will eat up bitcoin’s remaining supply like nothing else ever has.

The average person earns $548 a year from typical credit card rewards. If a bitcoin rewards credit card had been around 10 years ago, the average credit card user would be sitting on an $11 million fortune of bitcoin rewards today.

With these types of returns, it’s a no-brainer that millions of people will adopt bitcoin rewards cards.

Per year, credit cards process $35 trillion in transactions globally. That’s a massive pile of money – and it’s headed directly for bitcoin.

Let’s be ultra-conservative and say that just 1% of credit card transactions involve a 2% bitcoin reward. Based on these estimates, you’re looking at up to 276 bitcoin in new demand per day by next year.

If the credit cards keep up their rapid adoption, our numbers show they could eat up the remaining supply in as little as two months. So we could wake up one day and find no new bitcoin available on the market.

That’s why I call this massive supply cut the Final Halving. Because we’re talking about the equivalent of more than a century’s worth of halvings at once.

The Final Halving will be a huge catalyst for bitcoin, sending its price to $500,000… And remember, what’s good for bitcoin is good for the entire crypto ecosystem. That means the whole crypto sector is headed significantly higher from here.

Trend No. 2: A Decentralized and Democratized Banking System

While I believe bitcoin will remain a world-class asset in 2022 and beyond, we’ll continue to see the entire crypto ecosystem evolve.

And as it evolves, it will disrupt entire industries.

Nowhere is this disruption poised to hit with more shattering force than in the financial sector.

And that asteroid headed its way is called Decentralized Finance − or DeFi for short.

You see, finance companies are the ultimate middlemen.

They borrow money cheaply from one set of investors and lend it to another at a fat profit. They buy stock from one group of investors, then immediately sell it to another.

All the while, they catch a middleman spread (the difference between the buy and sell prices).

It’s estimated the finance sector extracts over $9.28 trillion annually from the global economy. That’s more money than the utilities, communication services, and real estate sectors combined.

DeFi will do for finance what the internet has done for so many other businesses: replace a high-cost middleman with a low-cost one.

Eventually, it’ll make banking, borrowing, lending, and investing more accessible and cheaper for billions of people.

And right now, blockchain apps – called decentralized apps or dApps – are already allowing users to trade billions of dollars in assets without any human intervention.

There are dApps for banking services, gaming, checking stock prices, weather, and sports scores…

Projects are springing up overnight and threatening to upend the business models of just about every traditional financial firm in the world.

In the future, it’s my belief every asset will be tokenized. That means stocks, bonds, titles of ownership, music rights – everything of value – will have its ownership rights secured by a blockchain.

And you’ll be able to exchange that value with a click of a mouse. Best of all, there won’t be any high-priced middleman standing in your way.

The result will be an entirely new global financial system run for the people… by the people… that operates with complete transparency.

I expect DeFi to evolve into a multitrillion-dollar sector. And yet, it’s still flying under the radar. In 2022 we will see it hit mainstream adoption.

Trend No. 3: The Metaverse Opportunities

Blockchain makes everything from cryptos to DeFi possible. And when you combine them with the internet, you get an investment of a lifetime: The Metaverse.

The metaverse could end up being a digital world where we live, work, play, and interact with each other in innovative and previously unimaginable ways.

The chart below measures the level of search interest for “metaverse” on Google in the United States, with 100 representing the peak level of popularity for the term.

As you can see, interest in the metaverse peaked in late October and has remained popular since.

Chart

The metaverse is destined to become the new center of social interaction the way the local pub had been for centuries… the way the early internet chat boards were in the 1990s… and how apps like Facebook and Instagram are now.

It’s a megatrend that will lure the entire world into its seductive maw… Just like how smartphones have eaten the attention of almost 6 billion people.

Soon, we’ll all be plugged into this technology in an entirely new and transformative way.

It sounds like a science fiction story, but the metaverse is a virtual world… intimately connected to our real world… where just about anything is possible.

I don’t blame you if you think the idea of a metaverse is insane. Until recently, I did, too. Then I remembered the “old” world of the early ’90s.

Imagine it’s 1991. And someone told you, “In 20 years, billions of people will buy and sell trillions of dollars’ worth of goods over the internet.”

Would you have believed them?

Well, I was there in 1991. And I remember people saying, “That’s crazy. I would never trust putting my credit card details online…”

Fast forward to today. And e-commerce has grown from virtually non-existent in 1991 to a global $4.9 trillion market in 2021.

By comparison, Morgan Stanley projects the metaverse will have an $8 trillion addressable market by 2030.

For many people, the metaverse sounds just as crazy as online commerce did to people back in 1991. After all, the name metaverse comes from merging the “real” and “virtual” worlds into one “meta” reality.

That sounds like science fiction and marketing gobbledygook. And maybe two years ago, it was. But now, it’s a very real and very investable trend.

In a few years, you’ll be able to exchange virtual products for their real-world analogs…

Work in a virtual office alongside your real-world colleagues…

And attend sporting events and concerts in virtual stadiums with real-world fans.

Make no mistake: The metaverse will create wealth-building opportunities just as significant as any other technological revolution.

2022: A Year Full of Profits

Friends, make no mistake… We’re still early in the early stages of these three trends. So, you can still make life-changing gains from tiny grubstakes.

One way to do this is through a tiny subsector of cryptos I call Tech Royalties. They’re a major part of the growing DeFi ecosystem. And we’re still so early in this trend, I bet 99% of people have never heard of them.

With Tech Royalties, you get the opportunity to make huge yields on your capital as the underlying network grows. It’s a way of securing a “royalty-like” income from investing in early-stage technology.

We were the first to write about this trend as early as April 2019… Since then, some of our tech royalty recommendations have seen gains of 2,961%, 3,561% and 45,280%.

I’ve put together an entire presentation to show you how they work… and details on my favorite Tech Royalty tokens to buy right now. You can watch it here for free.

Bitcoin/crypto… DeFi… and the metaverse are the three trends in 2022 that I believe will create generational wealth for those who position themselves early.

So make sure you position yourself early. And make 2022 the year that you become financially free.

Let the Game Come to You!

Teeka Tiwari
Editor, Palm Beach Daily