Solving the “Crypto Paradox”
Yesterday, I revealed that I’ve been working on an exciting new project.
Today, I’m going to reveal the nature of that project – and why I think it could have a huge positive impact on your life and wealth going forward.
But first I want you understand why I have dedicated the last few months of my life to this new idea.
It involves something I’ve called…
The Crypto Paradox
Late one night a few months ago, I went down a bit of an internet rabbit hole…
And I stumbled across a strange phenomenon – the Coastline Paradox.
The Coastline Paradox is a mathematical anomaly. First stumbled upon in the early 20th century by Lewis Fry Richardson. The phenomenon has a touch of Doctor Who about it, so I think you’ll find it interesting.
Richardson was attempting to accurately measure the coastline of Great Britain. And what he discovered is mind-bending…
If the coastline is measured in units of 100km, then the length of our coastline is 1,700 miles. Simple.
But if the unit of measurement is 50km, the length of our coastline is 2,100 miles.
So, the measured length of the coastline depends on the method used to measure it.
Take that in for a moment. The length of our coastline is not an objective fact. It is based purely on the decision to measure it in a certain way.
This quirk of fractal dimensions got me thinking about cryptocurrencies.
How can you measure the true worth and impact of cryptos?
Again, it depends on how you decide to measure them…
As a speculative investment, you can only conclude they offer an unprecedented level of return…
8,338% – Stellar
35,010% – NEO
822% – Monero
1,057% – Stratis
76,033% – Nano
464% – Dash
1,630% – Steem
13 April 2017 – 13 April 2018
Remember: Past performance is not an indicator of future results.
Ok, but what about as a form of currency…
Well, by that measure, cryptos lag way behind.
The crypto market is valued at about $345bn at time of writing.
Not bad for a form of currency born around eight years ago – up against a monetary system more than 7,000 years old.
But a long way to go, yet. Until you can spend your crypto in Tesco, at the petrol pump and on websites like Amazon, it’s just a cute blip in the long history of money.
What if we look at cryptos as a store of wealth?
Well, it depends on your timescale.
Over the last five years a £10k investment in gold – everyone’s go-to wealth bunker – would see you sitting on £10,260 right now.
A £10k investment in bitcoin – what many call “digital gold” – over the same period would have landed you a profit of around £550,000.
That’s not fair, I hear you cry! Five years isn’t long enough (note: it’s most definitely “long enough” for those sitting on a half a million profit!).
But gold has held value for millennia. Maybe in a hundred years we can draw a conclusion. Unfortunately I won’t be writing to you then – and I’ll lay money you won’t be reading.
So let’s be reasonable… bitcoin, like all cryptos, is wildly volatile… so it doesn’t give you the “sleep easy” feel of owning a lump of shiny metal.
As a species we attribute an inherent value to gold like nothing else. If you disagree, let me ask you this: in an apocalypse, when you’re trying to barter your way on to the last helicopter out of London – do you think the pilot will want your USB drive or your sack of sovereigns?
What about cryptos as a commodity…?
There can only ever be 21 million bitcoins mined… and we are approaching the 17 millionth fairly soon. Similar circulation limits are placed on many of the most valuable crypto assets.
A supply crunch in bitcoin’s future is a distinct possibility. Especially if it continues to expand its user base and popularity at such an astonishing rate.
That said, there is an advantage that other commodities have over cryptos:
Oil powers your car. Lithium charges your phone. Gas cooks your spaghetti.
The demand for fossil fuels and precious industrial metals can be said to be “real”.
So, you see the problem, the Crypto Paradox. The “worth” of cryptos depends on how you decide to measure them.
But I believe there is a very simple way to avoid the Crypto Paradox:
View cryptos as a technology.
If you do so, then the breakthrough that cryptos have made… the tokenisation of assets and the decentralisation of information, energy and power… means only one thing:
The most significant invention since the internet
Yes, crypto and the blockchain is changing the way we accumulate, store and spend our wealth… but that is just a tiny part of the greatest wave of tech disruption the world has ever seen.
You can compare it to the internet revolution… but the impact could be even greater than that.
We are witnessing the early stages of an entirely new system to exchange information and ownership.
If you’ve read Exponential Investor for any length of time, you’ll know this is something of an obsession of mine. I won’t apologise for it.
Firstly, it’s a useful obsession – cryptocurrencies have changed my financial life.
Secondly, my aim is to help you do the same. More on that in a moment.
What I want you to see is that the crypto rush is about more than rolling £500 into bitcoin or Litecoin on a jolly and crossing your fingers.
This is a tech overhaul akin to the laying down of railroads or fibre optic cables. It is a new type of tech infrastructure on which the future of business, healthcare, finance and entertainment is being built.
And some of the world’s biggest and most influential entities are vying to grab a slice of it. Here is just a glimpse of the daily mad rush of investment into crypto and blockchain tech:
This is just a snapshot of the stampede into crypto and blockchain technology… the trickle before the flood.
Forget crypto assets as speculation… as a commodity… as a bunker for your wealth… and look at the bigger picture. This is a torrent of technological change. And it is happening now.
But just what could this mean for the market?
How big could this get?
A $10 trillion surge
It is impossible to predict with any real hope of accuracy how big the blockchain market could become.
For example, if the securities market – currently valued at around $18.5tn – “upgrades” to run on the blockchain (as many believe it will)… how can you calculate its worth?
How much is the internet worth?
How much are railroads worth?
Or oil pipelines?
We’re talking about technology that underwrites our civilisation. And that is hard to round down to the nearest trillion.
A few respected financial minds have had a crack at doing so, however:
Jesse Powell – founder of giant alt-coin exchange Kraken – believes the crypto market could surge to $1tn this year.
It’s hard to know if any of these predictions will ever be proven correct.
But what’s worth noting is the scale of the numbers being suggested. These kinds of figures give you a major hint at what is just around the corner.
Nothing less than the greatest tech revolution – and financial opportunity – any of us have ever seen.
You can boil it down to two undeniable factors staring you in the face:
- A torrent of technological change and innovation that is transforming everything from energy to healthcare to finance to property ownership. Crypto tech is a completely new information exchange comparable to a new sort of internet. That’s big.
- The potential to make life-changing money is real. Not a dream. Not a far-flung fantasy. It is real. The crypto market is already the fastest rising asset class we’ve ever seen. It has already minted a wave of millionaires. And where it goes from here could be historically spectacular.
Presented with those two facts, you have a straightforward choice to make.
To become a part of it… to learn everything you can about this exciting technology and do everything you can to profit from it.
Or walk away… and just be a passenger as crypto and blockchain technology evolves and changes the world around you.
My hope is that you can see the enormous, exciting potential to be an active participant in what’s happening… to not miss out on the second great tech revolution of your lifetime. One that could prove even bigger and more impactful than the rise of the internet and monstrously rewarding stocks like Google, Netflix, Amazon and Cisco.
If that’s the case…
My new project is for you
It has taken three months to bring my new project to you.
It’s a way for you to gain unrivalled research and insight into what’s happening in crypto and blockchain technology… and have a clear idea of how you could profit from it.
I’m not on the outside looking in, here. I’m right alongside you for the ride. I am a crypto investor and over the last 18 months I have made more money from cryptos than I would ever have thought possible.
It has changed my life and I am confident it can change yours.
My goal is to show you my approach in totality:
My know-everything level of research… my special crypto-asset ranking system… my methods of mitigating the high risks as much as possible… how to draw in crypto income.
I want to show you everything I have learned from this new and thrilling world.
Because – as I will show you tomorrow – my research tells me we could be on the verge of the next phase of extreme growth in the crypto market.
Getting clued-up now could see you catch the most aggressive wave of asset growth in history.
You won’t get left behind. I’m going to show you everything in a way that is easy to digest and easy to understand. I’m going to walk you through all of this in a way I wish someone had shown me 18 months ago.
If I do it right, you could use this insight and experience to invest in cryptos capable of outrageous long-term growth.
I’ve been in financial publishing for seven years. No opportunity has spoken to me like the rise of cryptocurrencies. Not small cap stocks. Not biotech stocks. Not gold miners.
That’s because this isn’t just about the wild financial rewards that are possible… but because of the deep, liberating change the technology brings.
My goal is to marry those two big, compelling ideas together for you: that this world-changing technology is capable of generating life-changing wealth.
Tomorrow, at last, I can bring you in on what I’ve been working on.
If you have liked my work in Exponential Investor so far… I think you’ll love what’s next.
Editor, Exponential Investor