Chris’ note: Last week, the Securities and Exchange Commission (“SEC”) filed two seismic lawsuits against Binance and Coinbase. These are the world’s two largest crypto exchanges. And the suits call for sweeping changes to how cryptos are traded.
I know this is a worry for the thousands of Legacy folks invested in crypto. So, here with answers is colleague and world-renowned crypto investing expert Teeka Tiwari.
Last Wednesday, he hosted a livestream event about what’s happening… and what to expect in crypto for the rest of 2023. More than 6,000 people showed up. And they sent in a ton of great questions.
Teeka couldn’t get to them all at the event. So, instead he’ll address them here… starting with one about Washington’s crypto clampdown.
Q&A With Teeka Tiwari, Editor, Palm Beach Daily
Question: I keep hearing about a regulatory crackdown on crypto in the U.S. What does this mean for crypto investors? Should we be worried?
Teeka: The only people who should be worried about a regulatory crackdown are the people who’ve been using crypto fraudulently.
These are the folks who’ve been running Ponzi schemes masquerading as crypto projects.
We’ve seen fraudsters across all asset classes, from stocks to real estate. And they should be afraid of a regulatory crackdown.
But when it comes to Wall Street firms… They’re not afraid of a regulatory crackdown. If they were, they wouldn’t be getting involved in the crypto market.
Take BlackRock. It’s the world’s largest asset manager with $10 trillion in assets under management. It plans to offer bitcoin investing to its institutional clients.
Fidelity is the third-largest asset manager with over $4.2 trillion in assets under management. It already offers crypto trading for its 30 million customers.
These firms will bring in billions of dollars in new capital… and millions of new customers… to crypto. But for that to happen, you need regulatory guardrails. What we’re seeing right now is those guardrails being put in place.
Crypto criminals should fear this crackdown. This is the end of the Wild West era of the industry. But for law-abiding citizens like you and me… and large financial institutions that are making it easier for people to buy crypto… no, we shouldn’t be worried at all.
Question: During your broadcast, you mentioned a new development in crypto that will usher in the next generation of the internet. Can you expand on that?
Teeka: The next evolution of the internet is taking shape before our eyes.
And it will be built using the blockchain technology that underpins crypto.
As I explained during my special Big T’s FINAL Call event, we call that foundation Web 3.0 (You can stream the replay here).
Web 1.0 was the first phase of the internet. It lasted until about 2000. You could use it to read websites… search for information… and buy stuff online.
Web 2.0 is the version of the internet we use today. It allowed for streaming video and audio… social networks… and online multiplayer games.
Web 3.0 will be another leap. Rather than accessing the internet through Google, Apple, or Facebook apps – you can own and govern a slice of the web.
In this new version of the internet, Big Tech no longer gets to decide who can access what services. Instead, it will be built on decentralized blockchain technology.
A good way to think of Web 3.0 is the New Crypto Internet. That’s because crypto payments will be woven into its fabric.
You’ll no longer have to rely on banks to facilitate payment. And anyone will be able make a loan, borrow money, transfer real estate titles, and trade tokenized art and collectibles thanks to its blockchain foundation.
I know this sounds far-fetched. But sending mail in digital form over computer networks… and streaming high-definition movies to a smartphone… or talking to an AI chatbot… also seemed far-fetched at one time.
Question: Why do you believe the cryptos underpinning the New Crypto Internet will hand investors the biggest gains going forward?
Teeka: I can’t guarantee anything. Nobody can.
When I recommended bitcoin at $428, I couldn’t guarantee that it was going to go to as high as $68,000. And when I recommended Ethereum at $9, I couldn’t guarantee that it would go to almost $5,000.
What I could do was apply a research methodology that showed how these assets would go much higher in price.
And the same thing is true today. If I’m right about Web 3.0, blockchain and crypto will be built into the internet itself. That tells me another giant leap in prices lies ahead.
According to research I’ve seen, crypto will go from 300 million users to 5 billion users thanks to Web 3.0. That’s how you create massive, gigantic wealth. You get in on an adoption curve like this early on… and profit as a new technology goes mainstream.
You can look at the early days of the internet… TV… radio… the telephone… the telegraph… even the early days of electrification.
Once you take a fringe technology – and even electricity was fringe once – and scale it to billions of people, the gains for investors can be life-changing.
And that’s what’s happening right now with crypto, blockchain, and Web 3.0. And it dwarfs the legal fight in Washington over how you classify crypto and regulate it.
Chris here again – If you want to hear more from Teeka about how Web 3.0 will bring crypto wholly mainstream – and how you can position yourself to profit – you can still catch the replay of his event.
Just go here to access it.