Chris’ note: 3,370%… 6,041%… 15,912%… 53,500%… These are some of the gains colleague Teeka Tiwari’s readers have had the chance to make from past cryptocurrency “halvings.” That’s when the new supply of a crypto gets cut in half.
Now, he has his eye on a new opportunity to profit from what he calls the “Final Halving.” It’s not a preprogrammed supply drop like we’ve seen in the past. But it’s an event so powerful, it could cut the new supply of bitcoin to nearly zero in 2022.
Teeka hosted a special event all about it last week. You can catch the free replay here for a limited time. Then read on below to hear from Teeka on why volatility isn’t your enemy in the markets… including in bitcoin.
My biggest stock market regrets have come from selling too early…
I’ve left tens of millions of dollars on the table from mistakes including dumping Microsoft (MSFT) and Oracle (ORCL) in the early 1990s and getting out of Apple (AAPL) far too early in the 2000s.
I first got into Microsoft and Oracle in 1990 and Apple in 2003. Had I kept $100,000 in each, I’d have an extra $122 million today.
Even just $5,000 in each stock would be worth $6.1 million today.
Why didn’t I stick around? Volatility.
In the early days of a high-growth stock, there are always doubts about whether the company will make it. Sometimes, the market has huge bouts of volatility that amplify those doubts.
For instance, Oracle once dropped over 80% as doubts rose about its survival during an accounting scandal…
Microsoft frequently saw its stock swing down 30% or more…
And the market constantly questioned Apple’s corporate direction as it transformed into the powerhouse it is today.
It bears repeating that the problem with stocks poised for massive growth is that their early days are highly volatile.
If you don’t understand that volatility is the price you pay for the potential to turn a few modest $5,000 investments into multimillions… you’ll be doomed to always sell early.
So how do you stay in a position in the face of gut-wrenching volatility?
I had to learn this lesson myself… and I’m happy to share what I learned with you today.
The first step is to always choose position sizes wisely. Pick dollar amounts you’re comfortable losing.
For some, it’s $400. For others, losing $5,000 is a nonevent. Pick the number that’s right for you.
The second step is to be 100% clear about the long-term circumstances you expect will drive each stock higher.
For example, the long-term driver for Microsoft was the adoption of the desktop computer. The company had a monopoly on desktop computer operating systems at the time.
When I bought the stock in 1990, only 15% of homes had a computer. Today, 89% have at least one.
To make money on Microsoft, all you had to know about was its monopoly on desktop operating systems… and that desktop computers would soon be in every home.
Wall Street calls these circumstances “narratives.” While working on Wall Street, I discovered narratives drive much of a stock’s price action… both up and down.
When Wall Street grew fearful of slowing home computer adoption rates… Microsoft’s stock would drop.
The opposite would happen when Wall Street became convinced that everyone would eventually own a home computer. All high-growth assets have short-term, interim-term, and long-term narratives at play.
We get in trouble when we focus on negative short-term and interim-term narratives instead of the bigger, positive long-term narrative.
In the case of Microsoft, the short-term negative narrative was: Why would people want a “business machine” in their house? The interim-term negative narrative was that IBM (IBM) would displace Microsoft with its own operating system.
From time to time, the market would magnify these short- and interim-term narratives and bully Microsoft’s stock lower.
But in hindsight, if you had known the outcome of the long-term narrative (that just about everyone would own a Microsoft-enabled personal computer), then all of Microsoft’s volatility was just a buying opportunity.
To figure that out, all you had to do was track the sales of Microsoft operating systems. They were through the roof, dwarfing the sales of their competitors. Every earnings quarter, the sales data was telling you that Microsoft would be the winner.
Bitcoin (BTC) and Microsoft could not be more different. But what unites them is the long-term narrative of global adoption.
Over the last five years, bitcoin’s long-term adoption narrative has kept me in it since I first recommended the crypto to readers in 2016 at $428. When I first understood the power of bitcoin, I realized that eventually, billions of people would own it.
It didn’t take a rocket scientist to realize that with a computer-code-limited supply of 21 million coins, it wouldn’t take much global adoption to increase the value of bitcoin significantly.
Back in 2016, about 500,000 people owned bitcoin. Today, that number is over 200 million. One coin is now $47,055.
Research from Crypto.com expects bitcoin to reach 1 billion users by 2025. By 2030, it expects that number to swell to 3.7 billion.
Just as with Microsoft’s massive user-growth days of the 1980s and ’90s, all you need to know to make money in bitcoin is that usage will continue to explode higher.
So, when I see bitcoin sell off… I just remember when the price of Microsoft would get whacked… and “experts” would wonder about “the end” of the desktop PC revolution.
It’s the same narrative, just a different investment vehicle.
According to research from Cathie Wood, CEO of ARK Invest, bitcoin’s level of future usage will correlate to $500,000 bitcoin by 2025. I completely agree with her. We’ll see $500,000 bitcoin by then.
Long story short: This pullback is simply another buying opportunity.
The key to surviving pullbacks is to think in five-year time frames.
If you’ll need the money within five years, don’t put it in bitcoin. But if it’s money you don’t need right now, invest it in bitcoin when the crypto is beaten down.
I believe there’s no other asset in the world that will make you more money over the next five years.
If Cathie Wood is correct (as I believe she is)… and bitcoin hits $500,000 by 2025… you’ll see the crypto’s average annual compound growth rate at 106% per year between now and then.
Is there any other asset in your portfolio capable of that type of growth?
I seriously doubt it.
I remind myself of this all the time. Especially if I’ve just paid $65,000 for bitcoin, which I did recently… and then it drops into the $50,000s.
I say the same thing I said back in 2018 when I bought more bitcoin at $16,000 and watched it drop to $3,800…
When you look at the chart five years from now, and it’s at $500,000… you won’t even see the little blip between $65,000 and $57,000 (or $16,000 and $3,800). So don’t sweat it.
Friends, I’ve learned over the years that when you’ve identified a life-changing idea… you need to think in five-year time frames as I just discussed.
In the 1990s, I thought in time frames that were too short for my investment thesis to play out. That had me selling positions way too early… or selling out of positions during market crashes, which is a huge mistake.
So I want to congratulate you if you had the courage to withstand bitcoin’s volatility since I recommended it at $428 in 2016. One bitcoin now trades above $48,000.
Even after the most recent pullback, if you’d simply held on to your initial $500 or $1,000 stake, it’d be worth $62,329 or $124,658, respectively, today.
If you want a shot to take a small amount of money and radically grow it into a multimillion-dollar fortune – which my subscribers and I have done in crypto – you must pay the price by dealing with the short-term and interim-term negative price action.
There will be more volatility in crypto. I don’t know how much more. But it doesn’t matter. Just don’t draw long-term negative conclusions about crypto based on what happens over the short term.
Always remember that widespread adoption is the overriding driver that will turn crypto into a multitrillion-dollar asset class. That’s the “mindset” you need to have.
If you can stay true to that narrative, you’ll look back in the years ahead from a position of comfort and wealth instead of regret.
As I said, I believe bitcoin will shoot up more than 10x from here. It’s not too late to take a position. But the opportunity to buy new bitcoin won’t last much longer.
That’s because we’re about to see the incoming supply of new bitcoin drop by as much as 98.2%.
It’s all due to an event I call the “Final Halving.”
It’s not programmed to happen like bitcoin’s other halvings – when the supply of new bitcoin coming to market halves about once every four years. It’s much bigger.
The whole world believes bitcoin’s final halving won’t take place until 2140 based off the crypto’s computer code. They’re wrong.
Based on my research, the real Final Halving is coming in 2022, not 2140. And it’ll make all the scheduled coming halvings obsolete.
Here’s why I say that…
Bitcoin insiders have done something that was supposed to be impossible.
They’ve discovered a “backdoor” way to reduce the number of new bitcoins coming to market all the way to near zero… in 2022.
They’ll pull forward more than a century’s worth of gains… and nobody is talking about it.
That’s why last Wednesday, I held my special “Final Halving” Summit… where I shared details of six tiny crypto coins I believe will soar even higher than bitcoin.
Friends, the Final Halving will happen only once… all while Wall Street and mainstream finance are completely in the dark.
If you’ve missed out on the life-changing gains we saw from bitcoin’s first three halvings… or you’re ready for more… I urge you to watch the replay of my free event here – while it’s still online.
So act quickly to let me show you how to pull forward a century’s worth of halvings in less than a year.
Let the Game Come to You!
Teeka Tiwari
Editor, Palm Beach Daily