One look at the stack of documents in front of me, and I knew it was going to be a long night…
I had been wracking my brain trying to figure out the weirdest thing I had ever seen. Billions of dollars were flowing into brand-new crypto projects that were paying people to borrow money.
It would’ve been easy to write all this off as just a speculative excess with no long-term value. But more than $9 billion had already flowed into these new crypto projects.
I couldn’t ignore that. It reminded me of the mistake I had made with bitcoin back in 2011.
At the time, bitcoin was trading at $7, but I dismissed it out of hand as “magic internet money.”
I wouldn’t become a buyer until 2016… when it hit $428. The quick snap judgement I made five years earlier ended up costing me untold millions in lost potential profits.
I didn’t jump into bitcoin right away because I didn’t understand the transformational power of its underlying technology – the blockchain.
I needed to do a deep dive into the tech. After years of intense research, I realized blockchain was the real deal, with real value. Once I recognized this was the biggest technological breakthrough since the internet… I was ready to act.
In April 2016, I made my first two recommendations, bitcoin and ether. And since then, bitcoin is up 2,628%, while ether is up 3,469%.
But here’s the thing…
Uncovering opportunities in the fledgling crypto space wasn’t easy. I’ve easily spent hundreds of thousands of dollars and put in thousands of hours of legwork to find cryptos with the potential to unleash life-changing gains.
Here’s why I’m telling you this…
Massive Change Is Coming
For the past several weeks, I’ve spent sleepless nights poring over white papers… reading obscure journals… and reaching out to my network of insiders to get to the bottom of this trend.
The new crypto trend I’m talking about is decentralized finance (DeFi). We also refer to it as “crypto finance.”
And based on what I’ve uncovered, I believe it could be the biggest boom in crypto since the initial coin offering (ICO) craze of 2017.
But just like the ICO craze, this space is rife with fraud… misrepresentation… and good old-fashioned stupidity. Navigating it is akin to making your way through a minefield.
I haven’t climbed a learning curve this steep since I first got into crypto assets in early 2016. It’s been a humbling experience.
But I want to bring it to your attention because I believe you can make a fortune from it. I think it’ll remake our society the same way the internet remade the way we consume entertainment and the way we shop.
The internet has slain newspapers, television, and retailers. The next dragon to fall is the traditional finance system. Over the next decade, the way you bank, borrow money, lend money, receive loan approvals – even how you get paid – will be vastly different.
And if you act now to learn how that disruption will happen, I believe you can change the course of your financial life forever.
You see, the aim of crypto finance is to disrupt the entire traditional financial system by removing intermediaries or middlemen.
These financial middlemen suck out 6% of the value of global GDP annually. That’s $8.5 trillion per year in fees. That is a massive number.
Many so-called fintech firms have tried – and so far, failed – to loosen the chokehold traditional financial firms exert on the world.
It wasn’t until the creation of blockchain technology – along with smart contracts – that the pieces came into place to begin disrupting traditional finance.
Let me explain…
Smart contracts create all the logic needed for a computer program to automatically carry out functions. When you put a smart contract on a blockchain, it allows you to create software apps that can run without the need for a trusted third party.
When you can eliminate the need for a trusted third party… you can dramatically lower costs.
Don’t Confuse DeFi With P2P
The closest traditional product to DeFi is peer-to-peer (P2P) lending. But even that is a bad comparison.
DeFi is built on interoperable protocols. That means each individual component of decentralized finance can work with one another.
Compare this to traditional financial firms… in which each firm has to create its own lending, trading, and risk management software.
This creates huge inefficiencies, because the same type of software development (trading, lending, etc.) has to be replicated across each individual financial firm.
With DeFi, the protocols are open source. That means you don’t have to keep reinventing the same wheel.
You see, DeFi protocols are all built on the same programming language and use smart contracts, which means they can “talk” to one another. So programmers can write programs that can interact with these protocols freely.
This means new applications can be built that string together other blockchain applications in very unique ways.
Imagine if you were starting a new financial firm and you were able to use JPMorgan’s trading desk and Credit Suisse’s back office clearing… and have access to Nasdaq’s liquidity… in a completely automated system.
That’s impossible in the traditional financial world. But in DeFi, it’s not only possible… it’s happening right now.
DeFi applications on the blockchain will forever change the way we interact with money and financial services… the same way the internet changed the way we conduct commerce and consume entertainment.
The Next Generation of Blockchain Apps Will Change the World
Over the past few years, I’ve cautiously introduced my subscribers to crypto financing. In my Crypto Income Quarterly newsletter, we’re using DeFi apps to yield potential gains of over 50%… with average returns of around 8–9%.
But I’ve treaded lightly in this space for a reason: It’s still risky.
There are massive amounts of fraud and programming errors. And they’ve imperiled hundreds of millions of dollars stored in DeFi projects. It’s easy to use these teething problems to dismiss DeFi. I would urge you not to do that.
Think about traditional payment firms like PayPal.
When PayPal first started, it had periods when it was losing $10 million per day due to fraud. Those teething problems didn’t stop PayPal from becoming a behemoth in the payment space with a $219 billion market cap.
As of this writing, $9 billion is locked up in DeFi applications. That’s a staggering sum of money for such an early-stage application of blockchain technology.
So it’s clear to me the DeFi trend is far more than a flash-in-the-pan mania.
But it’s still very early-stage technology and fraught with fraud… hacking attacks… and volatility. We must tread carefully. The eventual winner of DeFi may not even have been created yet.
And that’s why I’ll be doing even more research for you, hunting for the protocols, platforms, and nascent projects I believe could end up dominating this space.
Let the Game Come to You!
Editor, Palm Beach Daily
P.S. As I mentioned above, we’re seeing major changes in crypto finance. In fact, the Office of the Comptroller of the Currency (OCC), the main bank regulator in the U.S., recently announced a major change to our financial system.
Most people will be caught by surprise, but the few who prepare now could come out of this wealthier than they ever thought possible. So if you have a U.S. bank account, click here to see how you should prepare for these changes.