Over the past week, we’ve seen a lot of changes in the cryptocurrency market…
In one 24-hour period, bitcoin rallied from a low of $29,000 to as much as $40,000.
It’s likely that much of that move was based on a report that e-commerce giant Amazon would add support for bitcoin and other cryptos. Amazon later denied the rumor.
To me, whether Amazon accepts bitcoin now or later is just background noise.
Based on my deep research in the crypto space… it’s a foregone conclusion that every major technology platform will at some point adopt support for bitcoin.
The parallel in the stock market I can draw for you is Tesla.
The electric carmaker was founded in 2003, and for years the S&P 500 wouldn’t even think about adding it to its index.
But Tesla’s price and value rose so much that the S&P 500 had no choice but to add it in 2020. Today, Tesla is the seventh-biggest U.S. company by market cap.
I believe we’ll see a similar scenario playout in which the big tech platforms will be forced to offer support for the blue-chips of crypto: Bitcoin and Ethereum.
It’s Not a Question of “If” but “When”
I’m thoroughly convinced companies like Amazon, Apple, Facebook, and Google will ultimately integrate bitcoin and Ethereum into their platforms.
And it all has to do with greed. Here’s what I mean…
If you look at two companies that have already adopted bitcoin – Square and PayPal – they’re making a killing.
Since adding the ability to buy bitcoin, Square has seen its crypto service revenue grow to as much a $3.5 billion per quarter.
And while PayPal hasn’t released specific numbers, its crypto-enabled Venmo payment app saw $58 billion in payment volume over the last quarter… a 58% increase.
PayPal is also launching its “super app” over the next few months, enabling even more crypto trading capabilities.
Just as important, Square and PayPal have seen combined user growth of 85 million new customers over the past year
This is creating a competitive advantage for them that Big Tech can’t ignore.
How long can Facebook ignore PayPal’s exploding userbase?
How long can Amazon look at Cash App’s growing crypto payment revenue before it says, “We’ve got to get involved. We’re losing market share… And there’s billions of dollars in earnings we’re not participating in.”
Silicon Valley is just like Wall Street. When it comes to making money, never bet against their greed.
All you have to do is follow the economic incentives. They’ll do far more for your wealth-building than following blind ideology ever will.
Don’t get me wrong. I’m all-in on the ideology behind crypto assets.
But as a capitalist, I have to have a very clear-eyed vision of what actually drives the adoption of new technology.
And it’s driven by economic incentives.
The economic incentives to adopt bitcoin and Ethereum are apparent to anyone who’s looking.
While Amazon might be denying its intention to integrate bitcoin… if you examine the economic incentives at stake you can’t come to any other conclusion than it’ll eventually have to integrate bitcoin into its payment and platform networks.
This was the same logic I used back in the depths of the 2019 “Crypto Winter” when I pounded the table on bitcoin at $5,000, saying that Wall Street would go all in on offering access to bitcoin to its clients.
At the time people thought I was a crazed bitcoin ideologue. But again, if you examined the economic incentives, specifically the billions of dollars in profits being made by unlicensed bitcoin exchanges, it was a no-brainer that Wall Street’s greed would compel it to get involved in offering bitcoin.
Long story short, it’s no longer a question of “if” Amazon will adopt bitcoin. It’s a question of “when” Amazon will adopt bitcoin.
Don’t Mistake a Selloff for a Bear Market
What I want to continue to hammer home to you as we progress through this emerging multitrillion-dollar trend – and especially as we go through what I call these “Mid-Cycle Blues” – is to stay focused on the story of adoption.
Even though bitcoin has dropped as much as 53% from its all-time high, the adoption story hasn’t slowed down.
I want you to really ponder that.
How many assets could drop 53% in value, and you still see its adoption rate go up?
You still see companies announce, “Hey, we’re actually providing more ways to get involved in this asset.”
That is very, very rare.
The fact we’re still seeing rapid adoption of crypto assets despite this most recent pullback tells me we’re experiencing a short-term selloff… Not a new bear market.
Let me put this in perspective for you…
Even though we’ve seen China ban bitcoin mining… massive environmental fears… and wild contradictory tweets from Elon Musk… the smartest money in the world has been buying bitcoin and Ethereum hand over fist while prices were coming down.
At the same time, the most established money in the world – the global banking system – has been opening its doors making it easier for its clients to get access to these assets.
Now, are they doing it because they believe in self-sovereignty? Or a decentralized economic system no one can manipulate?
No. They don’t care about any of those things.
They care about the fees they can make from shepherding their 500 million clients into this asset class. And so as long as that economic incentive remains in place, you can rest assured that global adoption rates of bitcoin and Ethereum will continue to skyrocket.
And as that adoption cycle expands, guess what happens? Prices go up.
And they don’t go up just a little bit…
They can go up five, 10, or 15 times for BTC and ETH, and smaller altcoins can go up 20, 30, 40, or even 50 times or more in value.
Friends, everything is moving along exactly as it should. If we didn’t have this mid-cycle break… I’d be concerned because the price movement would be unsustainable.
Remember, volatility is the price we pay for life-changing gains in crypto. You can’t expect to make 50 times your money without experiencing 50% drops along the way.
So ignore the rumors. Position yourself accordingly. And let time do the heavy lifting.
Let the Game Come to You!
Editor, Palm Beach Daily
P.S. While the Mid-Cycle Blues are creating a short-term pullback in crypto prices, crypto mass adoption is fueling a $30 trillion blockchain revolution…
And once these small projects have take off, your chance at life-changing returns will be in the rearview.
For more details on what I call the “No. 1 Investment of the Decade,” and how it could be as rewarding as buying Microsoft in the ‘80s… Amazon in the ‘90s… and bitcoin in 2010… click here.