Crypto: Single Best Bull Market
Today is the day! The final episode of my ABCs of this bull market.
C = crypto.
OK. If you know me, you know I have a twisted history with crypto.
I was actually a crypto bear in the beginning. (You never hear that, right?!)
But after talking to Ian Dyer and doing more research, I flipped sides!
Since then I’ve been ALL in on crypto.
Everything in the world is going digital. Crypto just makes sense.
Volatile? Yes. But that’s investing.
And there are three stocks that will get you access to the crypto revolution. Check it out:
Crypto: Final Edition of ABCs
This is the final edition of the ABCs of the coming new, big, phenomenal, incredible bull market. In previous episodes, I covered A, which is artificial intelligence (AI). It’s going to be huge. In the last bull cycle we had big data become a big deal, cloud computing become a big deal and we saw a little bit of these AI stocks get their first bump.
These are little, tiny babies still. We covered that in episode one of the ABCs. Episode two we did B: biotech. I told you three generals of biotech that are driven by three amazing technologies: CRSPR, mRNA and molecular diagnostics testing.
We are doing a lot of tests and even more coming to make sure your diagnosis is right. When you get your diagnosis right, the medication is right.
Today, I’m going to cover the last one, C, which is crypto. If you follow me on Twitter [@MampillyGuru] or on YouTube, you know I actually have a bit of a twisted history with respect to crypto. I want to fully confess and ask forgiveness and say I was skeptical at first.
It actually took my friend and colleague, Ian Dyer, to see what he was doing to understand. This ain’t going away. The folks who are investing in this, coding this, they are true believers. They are going to make this happen. I went from being a bear and calling Bitcoin (BTC) — did I call it a scam?
Sorry, maybe I did. I don’t think I did. I think I said it was a bubble. Truthfully, at least the timing was right. I was within a couple weeks of the $20,000 BTC high in 2017. Then I got religion and changed my mind. I know, people say, “You flip-flopped. You’re a flim-flam artist. You’re not consistent.”
I plead guilty. When I see new facts and understand new things, I will change my mind. So I turned and changed myself and said to buy BTC. We got close to the bottom. Somewhere near $3,500, I said BTC was at a low and to buy in. Since then, I have been all-in on crypto.
My initial premise was really as simple as this: Everything in the world is going digital. It makes complete sense, especially when I researched it. Money always follows the technology that dominates its period. We eventually got to machinery making money.
The printing press. That’s when paper money became the most popular. In the early industrial age when we first figured out mining, that was the gold standard. Today, what do we have? We have the digital standards. We have chips and computers and digital code.
Of course money is going to go that way. It’s so clear. The reasons for it you can now begin to see. I was sending some money just the other day to my mother who is all the way in India. I went to the app and had to connect my bank account to it.
That took 24 hours because there is so much fraud that they wait 24 hours to make sure it’s OK. There are some test transactions that have to be done. Then you are OK. Then you put the money in. They have to make sure the money is there by testing your account.
There were some problems there because banks don’t like these apps going in there and feeling this stuff out. Finally, they took the money. Then they kept it for two or three days. Then they finally sent it on its way. It was finally received. It took three or four days for the whole thing.
Then, quite recently, I transferred a little BTC from one of my mining accounts to one of my wallets and it happened like this [snaps fingers]. It was a few minutes, which is truthfully a little bit long. It can happen anywhere from 20 seconds to a few minutes.
Some people will say, “Paul, it took me 30 minutes.” Well that happens from time to time. Still, 30 minutes versus four days plus all the hassle and junk that goes along. Here it’s just two wallets. The money is here and it’s going here. Is this transaction true? Is this holding real?
It’s all verified on the blockchain and BOOM. There’s a revolution coming. It’s going to be laughable that all these people today are giving up on crypto, blockchain, BTC and saying it’s a fad. These folks are wrong — 100% wrong. Yes, I know Warren Buffett is one of them.
Listen, the world moves forward. Is there anything you can think of from 10 years ago that was better than today? If you are being fair, it’s almost nothing. It’s in human nature to try to improve things and try to use better technology and innovation to make things better.
Invest in the Crypto Revolution
The way of making money better is crypto. Three ways you can get access to the crypto revolution, which is about what in the end? It’s about speed. I told you four days versus four minutes. In other words, money moving rapidly around the world to whoever you want with some amount of freedom.
There is the cost. To send the amount of money I wanted to send to my mother, they took $15 for it. You know how much my transaction in BTC cost? 11 cents. These live in different planets.
The third one is in many ways the most important one: access. While lots of folks watching this may find it unthinkable that there are people today who lack bank accounts and use payday lenders to cash their paychecks, this is quite prevalent.
However, go and grab a phone and use CashApp, Venmo or any of these apps, it works in a way like a bank account. These apps are going to wipe out banks. The banks cannot compete. They are slow. They are expensive. They are inaccessible.
If you want to open a bank account they say, “Can we see this? Can we see that?” It’s intimidating. You have to walk into this thing and put yourself up there for judgment with these people. A lot of people don’t want to do that. On the other hand, this [holds up phone] makes no judgments.
Anybody can get a CashApp account. You can connect your paycheck so it goes directly in there. You can buy BTC. You can buy stock. You can do whatever you want. These three things make it something where the difference between what it is today — a static bank account — versus this dynamic, easy-to-use, cheap, convenient way of using money.
It’s going to win and it’s going to win in a big way. The banks aren’t going to have anything left. Like most revolutions it’s going to be like a hockey stick up. Slowly and then suddenly. So how can you take advantage of this? What are the stocks?
I have told folks about Coinbase. For now it’s a concentrated bet on crypto. It’s a mix of a lot of different things. Crypto is folks saving money through BTC, making a bet on the financial system that Ethereum (ETH) is going to become the currency of the guts of finance.
A lot of people don’t know about this stuff, but there’s almost like an entire plumbing and network of pipes that moves money around. ETH is setting up to take share in that and replace that. Then there’s ownership of companies and organizations. Ownership in general is moving to crypto.
Coinbase is a bet that the entire financial system is moving to crypto. Coinbase trades the largest cryptocurrencies. In the way I look at it, they are a mix of the New York Stock Exchange, which has some of the largest companies in the U.S., the biggest banks and also an asset management company.
It’s a mix of all these things together that you get when you buy into Coinbase. All these things, whether it be banking, investment banking, asset management, it’s all going to eventually go into crypto. Coinbase is the one that’s positioned to benefit the most from it in a pure crypto way.
The other way I would bet on this revolution is through Robinhood. This is a stock that has been completely crushed. I know people will say, “Paul, Robinhood? Most people trade stocks through it.” Yes, but the fastest growing business for Robinhood is crypto.
They are going to open up the investment options for crypto to a lot of people who, today, are a little left out. Robinhood with its easy-to-use interface, you don’t need a minimum to open an account, the fact that they have created baby steps where you learn how to trade, buy and sell in the stock market.
That ease of access, that cheapness, that convenience, yes, Robinhood is going to be a beneficiary of the crypto movement. So that’s number two.
The third one is BTC itself. There is no other cryptocurrency that has greater mindshare and market share globally. You can go around the world and the vast majority of people have heard of BTC. A few people have heard of ETH, but almost everybody knows BTC.
Increasingly, especially now with a lot of turmoil happening. Google Sri Lanka and you will see this is a country that’s bankrupt and run out of money. One of the reasons for it is because of what’s going on in this country. Interest rates have run up over here and they have run out of money.
I don’t think countries like Sri Lanka want that kind of effect. People say BTC is crazy volatile. On the one hand, at the very least the demand and supply movements are all programmed and algorithmic. They are not dependent on the whims of some group of people who have none of your interests at heart.
At least you know in advance with BTC there is a Halving, it happens every four years and the supply goes down. You can count on that. Despite all its volatility, BTC is still liquid. You can sell hundreds of millions or billions of dollars and there are people willing to buy and willing to sell.
The cheapest way to buy BTC today is to take a little risk. I want to be straight up and say I’m talking about risk. This channel is opinion and not advice. If you make money or you lose money, it’s on you.
The cheapest way to buy BTC is through the Grayscale Bitcoin Trust. This is a publically traded stock that owns a lot of BTC. It’s trading at a 30% discount to the value of BTC. Why is that? Because it’s a publically traded stock that depends on demand and supply.
It depends on what somebody is willing to buy and sell. Why are people willing to buy and sell Grayscale Bitcoin Trust — GBTC is the ticker symbol — for 30% below the BTC price? Because there is no way to adjust for it or arbitrage for it and say it’s worth 30% less so you can go and collect the BTC and hand in your GBTC.
That’s not possible. GBTC is applying to be an ETF. If that’s approved — and I think it’s a good bet at some point in time — that discount is going to collapse or be bridged. Now you will be owning BTC at whatever it is today minus the 30% discount. So 30% of $20,000. It’s like buying BTC at $14,000.
You do take the risk though that maybe it doesn’t happen. Hey, that’s the reality of money and finance. You take a risk. If you are right, you get a reward. That’s in the nature of all kinds of investing.
This is the final chapter of the ABCs of the coming mega bull market for our stocks. It’s very close. We see the end of the bear market and see the beginning of the new bull market. A few things need to settle out and make clear that the buyers are back. Once they are back, now you will start to see a race to come in and buy into these ABCs.
Editor, Profits Unlimited