As an investor, one of the worst feelings in the world is dumping a ton of money into an idea only to watch it dive in price right after you’ve bought it.
I’ve had this happen to me more times than I can count…
In 2016, I recommended bitcoin at $428. I had to coax and ultimately threaten my publisher with resigning to get them to agree to publish my crypto research.
Around the same time, one of the early bitcoin core developers “rage quit” the project saying bitcoin had “failed.”
He sold all his bitcoin, and it swiftly dropped 15% from $440 to $375. I was devastated.
Here I was thinking I knew better than a bitcoin core developer?
Had I made a mistake? Was it too late to walk back all my bullish talk?
All of these doubts and fears ran through my mind at the same time. A weaker man would have caved… And I almost did.
What stopped me was the realization bitcoin had created something that had never existed before: a tamper-proof way to send, store, and track value that didn’t require trusting a third party.
Never in human history had we been able to get away from trusted third parties. Yet all through human history, our trust in centralized authorities has been constantly betrayed.
Bitcoin is a solution to a problem that has eluded humanity forever. That’s when I knew bitcoin would be a multitrillion-dollar winner.
I remember asking myself… “What’s a global trust machine worth?”
It seemed like a heck of a lot more than the $6 billion the market was putting on bitcoin at the time. (Today, bitcoin’s market cap is around $500 billion.)
So instead of buckling – I doubled down. I wrote essays… I filmed educational videos… I created special reports and how-to guides.
In short, I did everything in my power to spread the word to my readers that bitcoin and its underlying blockchain technology would end up ruling the investment world.
But it wasn’t an easy journey.
Along the way from $428 to $64,000, bitcoin has dropped 82% once… 50% three times… 40% once… and 30% three times.
Yet no matter what price you paid for bitcoin since I recommended it in 2016 – the longest you’ve had to wait to double your money was 36 months.
That makes bitcoin a remarkable asset.
My point is this: Very often, you’ll see my ideas go through vomit-inducing drops. But you can also see it’s a life-altering mistake to confuse those drops with bad research.
Imagine confusing bitcoin’s 2016 drop with bad research. A $1,000 investment back then is worth $68,700 today.
Imagine missing that because you confused normal crypto volatility with flawed research.
Really think about that…
We’re Still Early in the Game
I bring all this up because the crypto market has gotten beaten up lately.
Since hitting a yearly high of nearly $31,500 in July, bitcoin is down 18% since then. Ethereum is down 19% over the same period.
Perhaps you got angry at the sell-off and dumped your bitcoin. Perhaps, even worse, you’re second-guessing my crypto research.
If this describes you, I urge you to reconsider and ponder this: An estimated 100 million to 150 million people own crypto. That’s out of 7 billion people worldwide.
Now ask yourself this: Are we in the early or late stages of this trend?
I think it’s clear we’re still in the early days of crypto adoption.
Let me give you some additional perspective…
We didn’t hit 100 million internet users until 1998. Back then, the top three internet companies – Amazon, eBay, and Netscape – were worth $33 billion combined.
Today, there are 5 billion internet users, and the top three tech companies (Apple, Microsoft, and Alphabet) are worth nearly $7 trillion.
That gives you an inkling of the growth yet to come from the crypto ecosystem.
I’ve been preaching the narrative of mass adoption for years now. And every prediction I’ve made about it has come true.
That’s why I believe the current pullback is a real gift to anyone who believes in the future of this asset class. Getting in at these prices can be a game-changer.
Longtime readers will recall how I pounded the table to buy bitcoin and Ethereum during the brutal 2018 Crypto Winter.
Prices had dropped as low as $3,200 for BTC and $85 for ETH. By the time the next bull run was over, bitcoin had peaked near $70,000, and Ethereum was over $4,600.
That’s the unique power of buying crypto opportunistically. Because the potential rewards – as compared to risk – are so asymmetric. The rewards are so massive compared to the risks.
And right now, I believe we’re witnessing another rare and historic buying opportunity.
There’s a massive catalyst coming. And I predict it’ll send bitcoin to $500,000 within the next five years.
When it does, this current sell-off will look like a blip on the radar.
This Catalyst Will Spark the Next Epic Run
I’m talking about the approval of a spot bitcoin exchange-traded fund (ETF). And we’re nearer to one than ever before.
Let me explain…
Last month, a federal appeals court sided with Grayscale Investments in its ongoing battle with the Securities and Exchange Commission (SEC) over a spot bitcoin ETF.
I won’t get into all the details here. My chief crypto analyst Houston Molnar did a deep dive into this topic last week.
In short, the court ruled the SEC was “arbitrary and capricious” for approving bitcoin futures ETFs but rejecting spot bitcoin ETFs.
To be clear, this doesn’t mean Grayscale has been approved to convert its trust into an ETF. It simply means the court decided that the SEC was wrong to reject the application based on its reasonings.
In the future, the world will consider this a landmark ruling. Here’s why…
I believe an ETF is an inevitability at this point. And it will increase mass adoption of this asset class.
While a spot bitcoin ETF offered by Grayscale will be a huge win for crypto adoption – the real game-changer is BlackRock.
The Wall Street titan has nearly $10 trillion in assets under management. Let’s just say it allocates 5% of its capital to a bitcoin ETF.
That’s $500 billion of potential new buying. And today the entire market cap of bitcoin is just $502 billion.
But here’s the rub that most folks don’t understand…
Unlike the stock market, where a company can just keep issuing an unlimited amount of shares, there will only ever be 21 million bitcoin.
Here’s the other thing to consider…. The people who buy BTC don’t sell it.
Over the last year, 68% of all BTC holders haven’t moved their coins. Over the last five years, 28% of all BTC hasn’t been moved.
Now compare that to the average holding time of U.S. stocks, which is just 10 months.
Compare the two, and you’ll begin to see that once the massive demand comes in, it’s going to hit a brick wall of BTC holders who won’t sell….
The outcome will be one of the most shocking parabolic price moves higher anyone has ever seen in their lifetimes.
To add fuel to this demand fire, other asset managers are champing at the bit to beat BlackRock as the first-mover with a bitcoin ETF.
Invesco, Fidelity, and WisdomTree have also filed applications for bitcoin spot ETFs.
Combined, these three firms have nearly $6 trillion under management.
As I’ve always said, bitcoin will become a core investment holding for virtually all financial institutions the same way that stocks and bonds are a core holding for the financial system now.
Friends, this is like 2018 all over again.
If you positioned yourself when I first pounded the table on Wall Street’s crypto greed, you could’ve seen returns of as much as 20x on BTC.
This time, the amount of capital ready to flood into crypto will be orders of magnitude greater. And the chance to transform your financial life for the better that much more profound.
Let the Game Come to You!
P.S. I’m paying close attention to a company that’s enabling another major trend: the rollout of a central bank digital currency, or CBDC.
You see, the Federal Reserve recently launched a program that could lead to a mandatory recall on the U.S. dollar.
This program could replace the dollar with a new digital version that will be radically different from what you have in your bank account right now.
I’ve put together a briefing to explain what this new digital dollar regime means for you and your money.
Plus, I’ll show you the one move you must make when your bank tells you it’s moving all your cash into this new digital dollar.