Chris note: Cryptocurrencies have come roaring back after a long “Crypto Winter.” And as we showed you yesterday, world-renowned crypto expert Teeka Tiwari believes the rally is just getting started.
That’s why we’re handing the reins of The Daily Cut over to Teeka this week. Below, he shows how the crypto market is maturing… and some of the catalysts that could push the market higher in 2019 and beyond…
I recently came back from cryptocurrency conferences in Hong Kong and Singapore.
I had many meetings with a lot of different folks that serve the cryptocurrency space, and the general mood was, to be blunt, quite glum.
I don’t take joy in other people’s suffering. But I was excited because it was long overdue to remove the carnival atmosphere we had in previous years.
What we’re now seeing is the great projects in the space not only survive, but thrive. They’re executing along their road map.
People are now asking better questions, and they’re focusing on the underlying technology and the use cases of these projects.
It’s wonderful to see because, in any technologically driven market – whether it’s in the stock market or cryptos – you go through these periods of excesses.
And with cryptocurrencies, this is not our first rodeo.
In 2011, we saw the entire market drop 94%. In 2013, we saw the entire market drop more than 85%. Coins like Litecoin went from the mid-$50s down to about $1. Then, in the next bull market, it went to over $300.
Many of my friends, acquaintances, and contacts were in the space in 2011 and 2013. I’ve asked them, “What was it like back then, versus what it’s like now?”
And the answer’s the same: People come in, prices get ahead of themselves, they crash. Everybody thinks it’s all dead and done.
About a year and change goes by, and suddenly, it starts to percolate again. It explodes to a higher high, gets overdone, crashes, and then you have this base-building process all over again.
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That’s where we’ve been for the past few months.
But here’s what’s interesting about where we are right now: Never in the history of this asset class have so many credible players started to take the underlying asset seriously.
The key takeaway that I got from my meetings in Hong Kong and Singapore is that we are seeing many large corporations start to actively use blockchain technology and cryptocurrencies in different aspects of their businesses.
For example, you may have heard JPMorgan Chase is doing its own internal coin to move capital around.
Now, it’s not really a coin, it’s a derivative. But the fact that JPMorgan is positioning it as a crypto is educating the entire market on the benefit of this technology.
Then, there’s Facebook Coin. Facebook has about 2.7 billion subscribers. And now, it’s going to have to train them on how to use what they are calling a cryptocurrency.
Again, it’s not a real cryptocurrency. But Facebook is riding the coattails of the interest around this technology. And it’s going to introduce a lot of people to this space.
It’s bringing it to mom-and-pop investors – a huge global audience that ordinarily would not be exposed to crypto. And that is incredibly bullish for the underlying market.
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Bit by bit, we are seeing the maturing of the space in front of our eyes. This adolescent is growing into a young adult.
As we look forward, any number of events can trigger a new boom in this space, including:
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An exchange-traded fund (ETF)
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The Bakkt or other trading platform coming live
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New financial products built around cryptocurrency that make it easier to buy, sell, and hold cryptocurrency.
But I promise you, the next boom will be bigger than the last – whether an ETF or a new exchange kicks it off.
And when it does, the money coming into this market will far eclipse any amount of money that came in before.
Let the Game Come to You!
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Teeka Tiwari
Editor, Palm Beach Confidential
Chris note: Tomorrow at 8 p.m. ET, Teeka’s holding a crypto Q&A. But he won’t just be answering your questions live…
He’ll also tell you why he’s doubling-down on cryptos for the first time this year. And he’ll reveal a new catalyst that could send cryptos soaring… and show you how to prepare for the rest of 2019.
It’s the first time Teeka’s going live on camera this year. To make sure you don’t miss it, reserve your spot right here.
READER MAILBAG
Turning back to one of the big themes on our radar – the autonomous vehicle revolution…
Last Tuesday, tech expert Jeff Brown told readers of our Bleeding Edge e-letter that “efficient self-driving cars will be here sooner than most think.” And he asked, “Would you purchase a self-driving car?”
Here’s what some of your fellow readers wrote back…
Can’t wait for self-driving cars. It will be perfect timing for me as a senior, who may not want or should not drive in the next 10 years. I already love my Roomba vacuum – saving my back every day. Tech is great!
– Susan D.
Of course, I will purchase a self-driving car. I am not getting younger, I will need all the help I can in my golden years.
– Mark A.
I would not purchase a self-driving car. The reason is simple… I like to drive.
– Kenneth S.
Meantime, another reader is enjoying Legacy Research cofounder Bill Bonner’s latest book, Win-Win or Lose…
I read your new book and I believe it is a contribution to knowledge. Thank you for sending me a copy. I love the way you use surprising facts to make a point… I wish you well and hope you have another bestseller.
– Fred C.
If you’re a subscriber of The Bonner-Denning Letter, find a copy of Bill’s new book, free of charge, right here. If you’re not a subscriber, read a preview of the book right here.
And join the conversation… Would you buy a self-driving car? How are you playing the crypto rally?
Plus, don’t forget to send in your crypto questions to [email protected]… And tune in to tomorrow’s Q&A to hear the answers live, straight from Teeka.
IN CASE YOU MISSED IT…
You’re invited to beautiful Carlsbad, California this September for the second annual Legacy Investment Summit.
Last year’s Summit was a resounding success. And this year’s is guaranteed to be bigger and better. Not only can you meet our brilliant analysts… you’ll also have the chance to hear investing ideas you won’t find anywhere else.
At our 2018 event, attendees received 40 unique investing recommendations and wealth-building strategies. That’s more than most financial publications offer in a whole year. And we’ve got even more on tap for this year…
Early-bird tickets are on sale until May 31. Go here to reserve yours now.
