Maybe when you think of NFTs, you picture a surly ape…
Or a blocky, pixelated punk with a bad haircut.
Or perhaps you think of overpriced digital artwork selling for prices that would make a Picasso collector blush.
And you may have concluded that the whole NFT (non-fungible token) market is just another fad.
If so, you haven’t heard the whole story. But don’t worry…
Today, our tech expert, Jeff Brown, shares why NFTs are a massive profit trend you don’t want to miss out on.
We’ll also look at why the recent bout of bitcoin (BTC) volatility points to future profits…
And you’ll see how President Biden’s trillion-dollar infrastructure plan offers a golden opportunity to position yourself for investment gains.
It’s all below, in this week’s mailbag edition of The Daily Cut.
It’s where you get to put your questions to Teeka Tiwari, Jeff Brown, Dave Forest, Nomi Prins, Jason Bodner, Greg Wilson, and the rest of the Legacy Research crew.
So if you have a question for any of our experts, email us at [email protected]. You can also reply directly to this email with your thoughts.
We’ll kick off today’s dispatch with a question about NFTs…
If you’re just joining the conversation, NFTs are unique crypto tokens that allow you to authenticate and verify ownership of digital assets.
These assets might be music, art, event tickets, fashion accessories… the list is endless.
NFTs are producing the fastest gains in the history of financial markets. But according to Jeff, you don’t have to speculate in NFTs directly to make a fortune from this boom.
Investing in associated blockchain projects could also bring potentially life-changing returns.
That’s why Jeff is hosting a special presentation on January 26 at 8 p.m. ET. He’ll show you how to get an early stake in an exciting class of digital tokens set to take off with this trend.
It’s free to attend. So make sure to reserve your place here.
Then read on as Jeff shows why NFTs are such a unique – and explosive – profit opportunity…
Reader question: Aren’t NFTs comparable to trading commodities? You don’t possess them. You don’t control them. You don’t have a say in their distribution. Aren’t we just trading “coins”?
– Joseph D.
Jeff’s response: Hi, Joseph. Thanks for writing in.
NFTs have recently been a popular topic at my tech investing e-letter, The Bleeding Edge. I’m happy to dive into this question.
We’ve described NFTs as digital collectibles. They allow us to cryptographically secure and authenticate unique assets or data on a blockchain.
The way this looks is rapidly evolving in creative ways. The only limit seems to be innovators’ imaginations.
NFTs can be pieces of art… interactive games… or royalty-producing smart contracts. They can give owners special access to their favorite franchises or other fan club benefits. They can even be status symbols.
The “non-fungible” part of the name means each NFT is unique – you can’t trade one for an equivalent.
We can easily swap one dollar bill with another. They have exactly the same value. They’re fungible. But it’s impossible to trade the Mona Lisa for something else of exactly the same value. It’s non-fungible.
If someone creates a piece of art and posts it online, anyone can download it and claim it without crediting the artist.
If, on the other hand, an artist turns their art into an NFT, it’s now verified as original to them. No matter how often someone captures a screenshot of it, the artwork’s authenticity – and the creator’s ownership – can be easily verified on the blockchain and held in the artist’s digital wallet. In that way, there’s only one original and one owner.
And NFTs can be structured to pay their creators royalties every time ownership changes hands.
As a piece of art increases in value, the artist gets a percentage of every sale. That rewards great work and creates future income for the artist.
NFTs can also be tied to real-world objects. You can buy an NFT that doubles as a ticket to attend an exclusive event or is redeemable for fan merchandise.
There are even “intelligent” NFTs. Alethea AI just sold one named Alice. The company designed it to have a personality and the ability to answer questions or hold a conversation.
This sort of NFT could serve many uses – even earning income on its owner’s behalf by promoting products or enabling business transactions with potential customers.
I’m excited to continue exploring the NFT trend. It’ll be one of the most explosive spaces to invest in going forward.
In 2020, the global NFT market had just under $340 million in transaction volume. In 2021, it had nearly $25 billion in transaction volume. Over the next decade, it could grow more than 1,000x.
NFTs will mint the next generation of crypto millionaires. That’s why I continue to put this trend front and center on my readers’ radars. If you’d like to learn how to start investing in NFTs, go right here for details.
Moving on, the world’s first cryptocurrency has been plunging.
As I write, bitcoin is trading at $42,608. That’s a 37% drop from the all-time high of $67,617 it set in November 2021.
But as regular Cut readers know, volatility is the price you pay for the shot at making transformative wealth in crypto.
That’s according to colleague and America’s most trusted crypto expert, Teeka Tiwari.
Teeka was the first person in our industry to focus a major financial newsletter, Palm Beach Confidential, solely on crypto.
He first recommended bitcoin to his readers in April 2016. Since then, it’s up 11,251% – enough to turn a $1,000 grubstake into $113,510.
And he’s helped many of his subscribers become crypto millionaires. As one reader wrote him…
Teeka, I reluctantly bought bitcoin about five or six years ago. It was so darn cumbersome and confusing to buy in the beginning that I simply put off your recommendation for about a year.
Long story short, I bought in, and the profits are buying me a $2 million home in Naples, Florida. I still have some bitcoin left and am waiting for the next big pop! Thanks so much, Teeka.
This second home will provide many a getaway for my kids and grandkids. I can’t thank you enough. I was also able to retire just a bit earlier and securely as well.
– Doug M.
And despite all the mainstream media’s fuss about bitcoin’s tumble, Teeka is convinced the crypto has plenty of upside ahead…
Reader question: Teeka – we need an update on crypto market conditions. Getting ugly, so we need your counsel.
– Mark H.
Teeka’s response: Thanks for getting in touch, Mark. As you know, bitcoin has been getting hit with a lot of volatility.
For longtime readers, this is familiar territory.
But if you’re new, you might feel anxious about this price action and wonder whether getting involved in the crypto space was the right decision.
If that’s you, I want to reassure you that none of this surprises me for an asset class that’s still so young. On December 15, I even said I wouldn’t be shocked if bitcoin goes down to $30,000.
Because that volatility is simply the price we pay to get in early. The best thing you can do now is focus on bitcoin’s long-term trajectory, which remains firmly up.
What I said last year about bitcoin’s price swings is still true today: Adoption is ramping up, and no amount of market volatility signals the death of crypto.
So make sure your position size is rational. And if it fits your risk-management profile, I encourage you to use this temporary weakness as a buying opportunity. We don’t often get the chance to buy such a high-quality asset at this kind of discount.
I’m treating this as a gift in disguise. You should, too.
Switching gears, President Biden recently signed into law the $1.2 trillion Infrastructure Investment and Jobs Act.
It was a rare moment of bipartisan agreement. Senators passed the bill with 69 votes in support and 30 against.
And according to the newest member of the Legacy Research team, it’s a great chance to position yourself for profits… no matter what your personal politics are.
If you’re just joining us, Nomi Prins is the newest guru on our team. She used to work on Wall Street.
But after the 9/11 attacks, she turned her back on a seven-figure salary to blow the whistle on Wall Street’s unethical practices and demystify the world of money for everyday investors.
Over at her new e-letter, Inside Wall Street With Nomi Prins, she spelled out where all the new infrastructure money will go. And she revealed the investment opportunities waiting for you to take advantage.
But one of her readers wonders if the government should even be spending this money on infrastructure in the first place…
Reader question: Nomi, I certainly disagree with your thoughts regarding what our government’s role should be in infrastructure.
I recall that railroads were built using private money. Since when does it fall to Uncle Sam to fix private or corporate railways? I am certain rail companies will not haul freight at a loss… they are for-profit businesses, after all. Seems to me they should be footing the bill to upgrade and stay competitive.
I agree that the U.S. Interstate Highway System has been neglected for far too long. Granted, the U.S. Constitution places the burden of maintaining a highway system on the federal government. Why, however, is Congress so late to the game? And why now, under the leadership of good ole Joe, is there suddenly a crisis?
What has Congress been doing with all the tax money I pay? Isn’t that reserved for the highways?
Let’s face it… The U.S. highways have been falling into disrepair simply because Congress has had what it considers more important issues to spend money on.
I am frankly shocked to hear you support more government spending. It is precisely this out-of-control spending that has driven recent inflationary pressures, and it seems you desire more of it.
– Brian M.
Nomi’s response: Hi, Brian. Thanks for your note. You bring up some great points here. And it sounds like you have an eye on history, something I’m always considering.
Here’s how I see it… I agree that we shouldn’t have out-of-control spending. I’m all for accountability. As American citizens, we deserve transparency from our government, not corporate subsidies or bailouts at our expense.
I wrote about the recent infrastructure bill because it had bipartisan support. That rarely happens on Capitol Hill.
Presidents Obama and Trump both talked about a large infrastructure package. The details were different for both and for the two political parties, but the desire was there.
And historically, presidents from different parties have accomplished lasting infrastructure projects that have stood the test of time.
President Lincoln’s administration, for instance, passed the Pacific Railway Act to help create the first transcontinental railroad as the best mode of transportation across the country for commerce purposes.
President Hoover commissioned the Hoover Dam, which was completed during President Franklin Roosevelt’s time and supplied energy up and down the West Coast.
And yes, private companies certainly played their role… and took their profits along the way.
Due to the pandemic, the opened-up central bank floodgates, and the mood in Congress, this bill passed under President Biden. The sectors I highlighted to focus on for investment opportunities are the ones that got the most support from both parties.
That’s why I believe they’ll have the most financial traction from an investment perspective.
The way to deal with inflation as an investor is to be aware of where it’s most acute and manage your portfolio accordingly.
That’s all for this week.
To sign up for Jeff’s first investment summit of the year… find out the name of one of his favorite NFT coins… and get a series of NFTs – all for free – sign up here.
And don’t forget, if you’d like to put a question to the Legacy experts, be sure to get in touch at [email protected].
Have a great weekend.
Regards,
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Chris Lowe
January 14, 2021
Dublin, Ireland