Hello John,
Cryptocurrencies have offered the best investment returns of any asset class over the past decade! We first alerted subscribers to the potential of Bitcoin when it was $100 and the price rallied to $20,000 within a few years. Ethereum rallied from $5 to roughly $1,500 in just a few years, for a 300x return on your investment. The cryptocurrency sector has since corrected and we believe this represents an excellent buying opportunity.
We typically hold around 10 different cryptocurrencies in the model portfolio and believe that many of the smaller altcoins have the potential for leveraged returns versus the gains in Bitcoin. But investors have to be very discerning and make sure they are picking companies with a clear business model and revenue stream.
While the gains thus far have been incredible, I believe we are still in the early innings of the cryptocurrency revolution. Blockchain technology is going to disrupt many multi-billion dollar industries and change the business landscape in the world. This will mean fewer middlemen, more decentralized systems, greater efficiency, higher trust and lower-end costs for consumers.
Bitcoin and some of the other top cryptocurrencies are offering a better form of money than central bank fiat notes. These digital currencies are complementary assets to precious metals and even superior to gold and silver in some ways. They represent free-market money and a leveling of the playing field. With a little luck, cryptocurrencies will replace the need for big banks in everyday life.
Is Bitcoin in a bubble? Yes, it sure seems that way when looking at the charts. But Bitcoin is not really a bubble, so much as THE PIN!
It has the potential to pop the other massive bubbles in stocks, bonds, housing, and fiat currency. Bitcoin's market cap is still a fraction of the total gold market cap, a tiny fraction of the equity or bond markets and completely dwarfed by the staggering amount of fiat money or derivatives in the world today. Thus, I believe that massive upside still remains.
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Cheers,
Jason Hamlin Founder - Nicoya Research |