Recently, I chatted with a very bright guy who’s part of my network.
He’s very wealthy and plugged into the crypto space. We talked about the rate of crypto adoption compared to the adoption rate of the early internet.
According to his research, the adoption rate of crypto right now mirrors what he saw with internet adoption in 1998.
The difference is the value capture in blockchain is dramatically higher in its early adoption stage than what we saw during the early stages of internet adoption…
In 1995 the internet had already been around for over 15 years, but there were just 16 million internet users… only about 0.3% of the world’s population.
At the time, people couldn’t grasp the revolutionary and groundbreaking potential of the internet… they needed to see a catalyst before mass adoption could take hold.
For the internet, that catalyst was Netscape Navigator.
When Netscape’s IPO launched in August of 1995, it was the spark plug that unleashed over $5 trillion of investor capital into internet stocks in the latter half of the 1990s.
By the end of 1996, the number of internet users had skyrocketed to 36 million – an increase of 125%. Five years later, the internet had a half-billion users.
The internet in 1995 is where I see the crypto market today.
Its value is about $2 trillion, and there’s probably another half-trillion sitting in equity valuations of companies tied to crypto like PayPal, Square, Coinbase, etc.
All told, that’s about $2.5 trillion in value in crypto.
Back in 1998, you had numerous public internet players… and the top three internet companies of the year – Amazon, eBay, and Netscape – had a combined market cap of just $33 billion.
So you can see the blockchain trend is already on pace to become much bigger than the internet in terms of the economic value it creates… And even though the technology is scaling faster than ever, it’s still in its very early days.
To put how early we are into perspective, consider this…
There are about 100 million crypto users worldwide. And there are more than five billion smartphone users in the world.
I hypothesize that nearly every person with a smartphone will also have a digital wallet to store crypto. That suggests we are looking at a 50x increase in the adoption of crypto assets.
Does that sound like we are early or late?
Clearly, we’re still very early on in this trend.
Some people may think I’m crazy for saying we’ll see 5 billion crypto users in the future – especially when bitcoin has dropped more than 40% from its all-time highs.
But I’m prepared to look like an idiot over the short term… Because over the long term, I’ve proven that my calls will make me look like a genius.
It’s the long-term trend that matters. Only liars, the truly skilled, and the very lucky get rich over the short term.
The odds of guessing what the market will do over a short time frame are too small to bet meaningful money on. That is why I stay focused on long-term adoption trends.
That focus, along with rational position sizes and no leverage, gives me the staying power when my positions move against me.
I learned that you must have a strategy for dealing with downside volatility if you want to get rich from owning financial assets. For me, that strategy is small, uniform position sizes in assets with explosive potential.
It’s been my “secret” weapon that’s made many of my readers millionaires.
Thinking in the Framework of Adoption
This is all to say I want you to tune out the volatility we’re seeing in crypto right now. Instead of thinking day to day… week to week… or even month to month… I want you to think in years. Not 100, 50, or 20 years. But three-to-five-year time frames.
I want you to think about the 3–5-year rate of crypto adoption.
Here’s what I mean…
If we have 100 million people now using crypto assets, how many people will be using crypto assets in three years? Will it be significantly more than 100 million? Or substantially less than 100 million?
You don’t need a Ph.D. in applied statistics to figure it out.
Morgan Stanley, Goldman Sachs, JPMorgan, Visa, Mastercard, PayPal, Square, and Coinbase are all bringing crypto assets to their respective customer bases. So clearly, three years from now, we’ll have more people using crypto assets.
I think at least one billion people will be involved in crypto, at a minimum.
But let’s give that a haircut and call it 500 million.
Now, think how far we’ve come with just 100 million crypto users. For instance, bitcoin has grown from nothing to nearly $1 trillion in market cap.
Now imagine five times that… You’re starting to understand how early we are in this space, right?
Now, does it mean that crypto assets will go up in a straight line and never experience volatility? No. That’s naive.
Remember, I’ve had numerous great ideas that have dropped 80−90% before they went up 100−400x.
I don’t have a crystal ball. So, I can’t tell you exactly when we’ll see adoption reach 500 million, one billion, or eventually five billion.
But over a one-to-three-year period… I can tell you with a high degree of accuracy that we will see at least 500 million new crypto users.
It’s just like I said in 2017:
Without question, institutions are coming into this asset.
They’re going to use bitcoin’s uncorrelated nature to convince their customers to get involved. And they’re going to come out with high-fee products to make money from it.
And if you bet on Wall Street’s greed, you’re going to make a fortune in crypto.
And I was 100% correct.
Or just like in July 2020 when I said, “bitcoin’s going to hit $60,000 much faster than people can realize.” And bang. In the first quarter of 2021, it hit $60,000.
Focus on the Big Picture
My point is this: Rather than focusing on the day to day − which nobody can consistently predict − focus on the big picture. I want you to know I’ve selected projects that I believe will capture massive value over time.
Unequivocally, I can never eliminate volatility from crypto… And if I had a magic wand and could do so… you wouldn’t want me to, anyway.
Volatility is how you make 10x, 100x, and even 1,000x returns. It’s the price you pay for the chance to make life-changing money from tiny grubstakes.
We’ll continue to see volatility. And bitcoin might waffle around here some more… but I can’t tell you from one day to the next what it will do.
My job is to position my readers in excellent projects I believe will positively impact their net worth over the next several years. Sure, some will go nowhere or only up a little. And some will even go to zero, but others will go up 100x, 200x, 300x, and more.
Friends, my goal is to help you create a collection of world-class assets… and use small, uniform positions so you can handle the volatility without losing your mind or having your spouse wanting to divorce you.
That’s my job.
Your job is to leave those assets alone and rely on my research that says crypto will go from a small market to a massive market… Then you can live your life in peace, knowing you’ve taken the steps necessary to transform your future.
And that’s my mission when I write these letters. It’s the thing that gets me up in the morning… And it’s the thing I think about right before bed. How do I help put you in a position where you never have to worry about money again?
Because that’s what’s at stake here… It’s your financial future.
I believe these crypto assets are the best way to do that. And I don’t mind looking like an idiot today to help you profit in the tomorrows to come.
Let the Game Come to You!
Editor, Palm Beach Daily
P.S. While many crypto investors are focused on short-term volatility, a long-term $30 trillion revolution in one underlying crypto technology is just getting started…
I believe it will be the No.1 investment of the decade… like buying Microsoft in the ‘80s… Amazon in the ‘90s… and bitcoin in 2010.
Any one of these could have made you a millionaire many times over, starting with very little. And that’s why I recently shared the details of my No. 1 investment in an exclusive interview.