OK, you probably think Im a crypto bear, and that this is the start of a long-winded rant against all-things altcoins
Far from it.
Im a big believer in innovation, and cryptocurrencies blockchain in particular represent some of the most promising innovations of our times.
Just like the internet before it, the blockchain will fundamentally reshape the world.
This wont happen overnight, but long-term, I am very, very bullish on cryptocurrencies.
That said, were in the midst of an unsubstantiated cryptocurrency bubble.
This bubble likely will persist for another few months. And, to bring the internet comparison to its natural conclusion, it will end the same way the dot-com bubble of 2000 ended with an enormous cryptocurrency crash.
Heres the story
I love cryptos. More broadly, I love the beneficial disintermediation that is made possible across all industries by blockchain technology.
I wont bore you with the details in this issue. But, in the big picture, blockchain is arguably the most disruptive technology since the internet, with the core of this disruption being blockchains centralized and immutable ledger.
This thoughtfully constructed ledger enables innately untrustworthy individuals and entities to collectively create trustworthy systems, without the need for any central authority hence the term disintermediation.
Blockchain enables humans to remove the middleman from legacy systems and replace them with a collective ledger.
Now why would we do that?
Because middlemen are often unnecessary profit-takers.
Further, theyre sometimes subject to corruption (see: the financial crisis of 08).
By removing and replacing them with an automated and incorruptible technology (which doesnt need a paycheck), we can make todays systems and processes more trustworthy, faster, and cheaper.
The applications here are theoretically infinite.
One application of blockchain technology that Wall Street is currently drooling over is the creation of blockchain-enabled currencies or cryptocurrencies to create a new era of decentralized finance (DeFi) that doesnt involve big banks as profit-taking intermediaries.
And DeFi is the future.
DeFi, however, is not where I see the most upside in the blockchain/cryptocurrency megatrend.
After all, DeFi is intended to disintermediate banks, like Goldman Sachs, JPMorgan, and Wells Fargo. Those are multi-hundred-billion-dollar companies. The disruption opportunity is huge.
But there are other cryptos I feel very strongly could deliver massive long-term returns. Ive shared details on one of my favorites through the Daily 10X Stock Report, where I write about a new megatrend-backed opportunity each and every day. Click here to get all the info on how to join, and start learning about where I see the most opportunity in this rarely talked about crypto opportunity and beyond.
And, right now, theres a much, much bigger opportunity in disintermediating technology titans, like Alphabet and Amazon, who are trillion-dollar companies.
Which is why I love the idea of dApps, or decentralized applications.
DApps are software applications built on the blockchain. This can be any application. A video media application, like YouTube. A driver-rider app, like Uber. A music stream app, like Spotify.
The central link is that these apps are coded on the blockchain and therefore, there is no central authority that runs the app and makes money from the app, either via subscription sales or digital ads. By removing that central authority, dApps create a new generation of truly free software applications.
Often times, these dApps have underlying cryptocurrencies which are used as a form of in-app currency in the dApps, or incentive token for the app developers and blockchain participants.
The appreciating value for these cryptos represents the economic value of the dApp, i.e. instead of the app makers making money from digital ad sales, they make money by owning the dApps cryptocurrency, which rises in value as more folks use the dApp.
I firmly believe that dApps will disrupt everything. The future YouTube will be a dApp. The future Uber will be a dApp. The future Spotify will be a dApp.
Most, if not all, apps in the future will be dApps.
That means its time to go out and buy a bunch of dApp-linked cryptocurrencies right?
Not so fast.
Cryptocurrencies are where internet startups were about 22 years ago: In a big bubble, that will pop, leaving most inflated cryptos today with zero value.
Just consider back in 2000, the Nasdaq had 5,000 technology companies in the index by 2003, around 1,000 of them had filed for bankruptcy, while most of the rest had been acquired at a fraction of their peak valuations.
Sure, the internet did end up turning into the future, and out of the dot-com bubble emerged trillion-dollar internet titans like Amazon and Alphabet. But the point here is that all the rewards of the internet were hogged by a handful of companies, and that most internet startups in 1999 lost investors their shirts.
Youll see the same rodeo play out with cryptos.
Cryptos are the future. But all the rewards of that future will be hogged by a few strong cryptos. Ninety percent of the coins out there today will be worthless in a few years and yet all of them are being valued for world domination.
Dont believe me? Just look at Dogecoin. It was created in 2013 as a joke. Now, it has a market cap of $40 billion. Thats unsustainable.
The crypto market today is filled with reckless speculation. Not once in the history of capitalism has unchecked speculation proven to be sustainable. A crash is coming. Most cryptocurrencies will plunge in value.
And yet out of the rubble a few super strong cryptocurrencies will emerge that will fundamentally change the world over the next two decades and turn early investors into Crypto Millionaires.
The key to striking it rich in the crypto market, then, is to buy the right cryptocurrencies the most technologically-advanced cryptocurrencies with the most value-additive applications.
Which ones make the cut?
Lucky for you, I just started highlighting some of the highest-quality yet still under-the-radar cryptocurrencies in the market in my Daily 10X Stock Report, which gives readers a potential 10X stock pick (or, in this case, crypto pick) every single day the market is open.
I believe the cryptos my team and I are highlighting over there represent the best in this industry has to offer the cryptos that will weather the coming cryptocurrency crash and emerge from it ready to soar 10X, 100X, or 1,000X over the next two decades.
Those cryptos represent the future.
To gain access to them, click here.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
By uncovering early investments in hypergrowth industries, Luke Lango puts you on the ground-floor of world-changing megatrends. Its how his Daily 10X Report has averaged up to a ridiculous 100% return across all recommendations since launching last May. Click here to see how he does it.
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The Coming Cryptocurrency Crash (And the One Crypto You Should Buy) - InvestorPlace
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