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Zeros to Heroes: America 2.0 Stock Market Comeback

Zeros to Heroes: America 2.0 Stock Market Comeback

For the last four or five months, we’ve gotten emails and comments telling us America 2.0 stocks were zeros.

But now, our America 2.0 stocks and cryptos are making huge leaps forward — turning into heroes!

This is why it’s so important to hold Strong Hands through volatility. Paul’s put it like this:

stocks are rising hero paul mampilly tweet

America 2.0 growth stocks are making a comeback. And I believe the crypto market is shaping up to be better than ever!

I’d say it’s time you feel like a hero.

See the full scoop in this week’s IanCast for more on the current crypto market, how America 1.0 investors are reacting to this shift and all things America 2.0 growth stocks:

Paul: We have now officially launched Crypto Flash Trader. Congratulations to you and our team. This is years and years of work and preparation and planning. Thank you to our Strong Hands Nation audience for coming in and supporting us and subscribing to Crypto Flash Trader.

This is going to be an absolutely incredible service. Ian is leading it and I know there is going to be exciting, money-making things coming because the crypto markets continue to give us this gift of low prices.

Ian: Yes. It’s a super exciting time to get started on this. I know a lot of people worked very hard and we are proud to get this out. We are glad to get it to you. Right now I couldn’t think of a better time to launch this service.

Like you said, prices are low but we are starting to see some strength in some really crucial areas of the market, which is a good sign.

Paul: Before we go through a full-fledged crypto discussion, let’s start with the stock market and our stocks. I am wearing this shirt for a reason. I always tell folks during Profits Unlimited updates — for those unaware, Profits Unlimited is our flagship service. It’s a multi-cap investment newsletter.

America 2.0 Stock Market

We track it on an equal-weighted basis. It’s about double the S&P 500 if you followed our methodology of equal weighting and owned every stock since inception.

I tell folks in those updates that when stocks go up people think I’m a hero. For the last five months or so, people have thought I’m a zero. I am in the business of trying to fit the t-shirt to the moment. I felt this is a good time to have the zero hero t-shirt.

Ian: You have to endure dips like this to make money in the market, especially in growth stocks. It’s just part of the game to hold on through times like this.

Paul: I had a discussion this morning while I was doing my early-morning check of stocks. Someone was writing me telling me and pushing me to be selling when stocks are high. The thing is, nobody was asking for anything at that moment other than more stocks to buy.

When prices are high, people want to buy more and more. I told them that’s wrong for us. Our way may be wrong for many people. We tell you what you want to do is manage your volatility through position sizing so you can endure through volatility.

Ian: Right. That’s the key. It’s to not get gung ho about buying everything when you see it all going up at the same time. That’s a signal. When I see things that like and everything is going straight up, it usually means some form of correction is on the way. The one we have seen over the last few months is bigger than normal.

Usually when you have the feeling nothing can go wrong it means a correction is somewhere in the near future.

Paul: I saw this article I want to bring up. I believe it ran in Bloomberg, but we have it from a different source. It talks about investors regretting stocks at the start of the pandemic. It references a survey that was done of 1,000 non-retired Americans, conducted at the end of April.

It found that as many as 30% of people pulled their money out. This research was done by a company called Clever. 60% who took money out of the market now say they regret doing so. The survey found that people who sold stock took out an average of 43% of their stock-market investments since the beginning of the pandemic.

This is what I have observed from all my time in investing, whether you look at regular investors or professional investors. People think professional investors are emotionless or some sort of robotic computers or they perfectly time their way in and out. The thing is, the dips are caused by them.

They are the ones selling at those low moments because you need a lot of volume to cause it, Lows are not caused as a result of people buying, lows are caused by people selling.

Ian: I remember clearly back last April and the end of March when things were tanking, every single investment advisor or hedge fund manager was saying to sell because either things were going to crash farther or there was going to be a double correction.

They had all these shapes for recoveries. We were the only ones who said things were going to go back up and people thought we were crazy. It works both ways. When things are going up in a straight line, everyone wants to buy and are bullish.

But when things fall, especially like they did last year, everybody wants to sell and get out of it. That’s usually a losing strategy.

Paul: Right. Our way is to tell you to take the emotion out of all this. It is very naturally human to want to sell when you see your account value starting to decline. It’s equally human somewhere near the end when you see rising values to want more and more of that.

We say, equal weight stocks. Keep a cash slug in your portfolio that acts as a dampener or a volatility buffer as we call it. The primary reason people sell is fear, rather than anything that’s actually going on at the company.

Ian: That’s what happens. Then that gets out there in the headlines and causes more fear. When you see that ultimate capitulation like we did in mid-May, that’s when the bottom is here. When you see growth stocks going down 7%-10% a day and it just seems crazy and that everything is going to zero, that’s how you know the bottom is officially in.

That’s doesn’t happen in every correction. That is extreme. Now, we’re starting to see things rebound. It’s been good for growth stocks. They’ve looked good the past couple months.

Paul:  We had a couple days when stocks went down and the reasoning has flipped. It was merely two weeks ago when I was being bombarded by questions about inflation, hyper inflation, interest rates skyrocketing. Now I am being bombarded about the opposite.

“The growth is slowing down. Interest rates are slowing down. We need to sell everything.” Bottom line, if you invest by the news you could never invest.

Ian: You’d never want to buy anything and just keep your money in a money market fund getting 0.1% or whatever. I thought that was crazy too. They look at the last week of data and base all kinds of hypotheses on that. This time it’s lower rates, last time it was higher rates.

Paul: I don’t want them to accuse you of being a scam artist like they accuse me. Rates at the banks are 0.01%. For you to say 0.1% would be bad.

One of the indicators you often talk about compares the ARK Innovation ETF, the S&P 500 equal-weighted index, the S&P 500 large-cap index weighted by market capitalization and then we have various ETFs — the financial ETF with the ticker XLF, the materials index with the ticker XLV and the consumer staples index with the ticker XLP.

XLF would have stocks like Wells Fargo and Bank of America. Berkshire Hathaway I believe is in there as well. Materials would be stocks like Freeport McMoran and mining companies. Consumer staples are the things people swear by. They have become the bonds of our time that people own primarily for dividends.

Here’s the performance since May 17, which I believe is approximately the bottom for growth. The ARK Innovation ETF is up 20%. The S&P 50 is about flat. The S&P 500 large cap, primarily due to Apple having a huge rally recently, is up about 4%. The financials ETF is down 5.5%.

The materials ETF is down about 8%. The consumer staples, which is supposed to be Mr. Stability or something that has no volatility is actually down a tiny bit despite being a dividend and people flocking to it with the reopening trade. People say they will never go down because of the dividend.

The truth is, these stocks are propped up by massive amounts of stock buybacks. The ARK Innovation ETF has been rising huge.

Ian: That’s kind of how it goes. When the market might be a little weaker, you will see growth stocks go way down. But then when the market flattens out or goes up a little, the growth stocks way outpace it. It’s just more volatile.

Over time, if you look at a longer-term chart of ARKK versus the S&P, ARKK is just crushing it because when it does rally, it rallies way more and it doesn’t lose nearly as much ground as the bigger indices when it does go down.

XLP is interesting because those stocks got pumped up with growth stocks because everyone was buying tech and household supplies because of all the craziness going on at grocery stores. Clorox is one of those. I saw it was down almost 40% recently from the high.

Those are not stable bonds or whatever people want to call them. They went through a crazy hype cycle, which is unusual.

Paul: A lot of these got involved in something called the reopening trade. People went and bought these stocks because for the first time in a decade they were actually going to show year-over-year growth. The market is always looking forward. It discounted that growth for about six months.

However, after the reopening, nothing has changed. We are still in the same environment we were prior to the pandemic.

Ian: There’s still no growth in these companies. All the growth is in America 2.0 companies. Tech is penetrating every single thing out there at this point. That’s where you want to be if you want to invest in growth and in the future.

Paul: Personally, I believe we are going to see as the second half unfolds and interest rates are back where they are, mortgage rates are under 3% and we’re going back to the same environment that existed pre-pandemic.

If you want real growth that is not driven by stock buybacks, which is representative of top-line sales growth, there’s only one place to get it: our stocks. That’s America 2.0, Fourth Industrial Revolution, growth stocks. That’s what we’re in. If you are in our stocks, just hang in there.

Our time is coming. I know it has been a tough four months. We had a huge year in 2020. In hindsight, yes, the correction was bigger than what we expected. We would have thought after the crash in 2020 a little less selling would occur. However, on the flip side, the upside in 2020 was higher than what we would have imagined as well.

Market Correction Settling

Ian: For sure. The rally that went into the beginning of this year was crazy. We did expect a correction, but the one that happened was really big and we are now finally starting to see things come back.

Paul: I believe the selling is washed out. Now, all the folks who sold are looking to come back in. They are going to be forced to come and buy back the stocks they sold. In the process, the stocks will come up. Hang in there. We are BOP — bullish, optimistic, positive — on our stocks.

We are definitively not bullish on the old stocks. We think the Wells Fargos of the world are going to be destroyed. And the energy companies like Exxon, which have rallied so hard. They have no future.

Ian: Even compared to the price of gasoline, the rallies in the stock are weak. Oil will go up and you see these companies go up sometimes. Most of the time when oil goes up, the oil stocks are way weaker than the price of oil itself. To me, that’s a sign that the buyers in that sector are really gone.

It’s mostly just traders who were getting in on that reopening trade.

Paul: There’s the last few folks that I believe are going to get crushed. They should be careful if they own these stocks for their dividends. They are holding on for dear life and I am genuinely concerned for them. Many of them are counting on dividends, but it acts as a trap for them.

Let’s transition this away from the stock market. You sent me this article that I felt was worth commenting on. This is by someone who is worshipped by people, not on our side of the fence. This is Warren Buffett’s equally famous partner Charlie Munger who said these things about China.

In this article, which has the headline “America can learn from Communist China,” he says he wishes financial regulators were more like those in China. He is quoted as saying,

“Communists did the right thing.”

This is in reference to the handling of Jack Ma who is the founder of Alibaba and so many companies that have been associated with a lot innovation around selling things and financials. Charlie Munger says that China was justified. We don’t know what happened to Jack Ma.

He was essentially not allowed to say anything in the press. Maybe he was incarcerated. No one actually knows. According to Munger, he says

“China called in Jack Ma and told him and told him, ‘You aren’t going to do it.’ They said, ‘To hell with you.’”

Munger noted he thought Ma was looking to wade into banking and do whatever he pleased. He went on to say while he wouldn’t want all the Chinese system in the U.S., “I certainly would like to have the financial part of it in my own country.”

He went on to tell the host on CNBC that,

“While our own wonderful, free-enterprising economy is letting all these crazy people go to this gross excess, the Chinese step in preemptively to stop speculation.”

Finally, he said,

“That turned out to be exactly the right thing to do. They didn’t allow any contact.”

This was with respect to how China dealt with COVID.

“As a totalitarian state, they can essentially do whatever they want to their people. China had the luxury to simply shut the country down for six weeks in response to the COVID-19 pandemic.

That turned out to be exactly the right thing to do. They didn’t allow any contact. When it was all over, they went back to work. They did it exactly right. My hat is off to the Chinese people. I think they will continue to make money. They have learned what works.”

Let’s unpack this. Charlie Munger seems to believe it is right for the government to handcuff people if they look to innovate in a country. If it reckons his interest. What is Berkshire Hathaway in? Insurance is their bread and butter. So the disruption of the financial system from crypto, Bitcoin and fintech threatens their interest.

In his judgment, we should have something like the Chinese government in the United States come and potentially lock up all the innovators because it threatens their interests. What do you think, Ian? Would that work in America?

Ian: I am going to say no on that. That does sound like what he saying, to stunt all innovation, especially in the financial sector where he has a lot of his money. It’s bizarre that he would say this stuff. In the Chinese stock market, the government will step in and tell people not to buy certain things.

They did this a lot with Bitcoin (BTC). They pushed it out of their country as much as they can. People can still buy it, but it’s not nearly as easy. And, as we know, they got rid of the mining. I don’t think that’s going to work out too well for them in the future.

I don’t know, other than for personal interests because that’s what he’s invested in, why anyone would want that in the country they live in.

Paul: I suppose if you have hundreds of billions of dollars invested into existing financial infrastructure and there’s no way to get yourself out of it, if you are powerful in places like China, what do you do? You get the authorities to stop the innovation.

Essentially, maybe in a different time, that would have been allowed here. I suppose you would lobby for various rules and regulations so the fintech companies and crypto would be banned, like the way the Chinese banned crypto miners.

Ian: Thankfully, here it seems to be the opposite. People are definitely more open to BTC and crypto in general. We’ve seen a number of cities across the U.S. put in effort into building mining infrastructure, which is really great.

They’re becoming educated on crypto and the benefits it has. I think it’s great that it’s not what Charlie Munger wants.

Paul: With respect to COVID, I suppose we are wading into politics here because there are definitely people who are sympathetic to this view that we should shut down all of society and be imprisoned in our homes. What do you think?

Ian: I’m going to go with a no on that one too. You have to weight the cost and benefits. From my perspective, it doesn’t make sense to do that on a huge scale.

Paul: I would agree with you and say that I actually even know of people who were delayed various care and, as a result, their cancers have progressed beyond what it might have been if we went through a scenario like Sweden who never went through a lockdown.

There’s also an enormous mental health burden that has been caused by these lockdowns. The suicide rates in the United States, particularly among teenagers, are hitting record highs. Charlie Munger, I guess, has not read these pieces of news. What do you think, Ian?

Ian: I don’t know. It’s bizarre. I’m not sure where he’s coming from.

Paul: He’s been considered an American hero, along with Warren Buffett. They are touted as the epitome of capitalism and they represent part of America. For me, reading that article was a shocker. Not to pick on Charlie Munger and Warren Buffett, but they also called Robinhood a “gambling parlor.”

He said Robinhood is, “a gambling parlor masquerading as a respectable business.” Warren Buffett went on to say he feels the company should be required to sell people low-cost index funds. “Instead,” Warren says, “you will get advice on how to trade options.”

According to Munger, they tell people they aren’t paying commissions when they are simply paying commissions in the trading through the bid and ask prices. He says it’s a “sleazy misrepresented option.” Robinhood, which I have to give them credit for, said to compare American investors to race track bettors is disappointing and elitist.

They said people are tired of the Warren Buffetts and Charlie Mungers of the world acting like they are the only oracles of investing.

Ian: I will side with Robinhood on that one. This is an example of how Charlie Munger would want Chinese financial policy here. They like to step in and say you can’t invest in this because it’s too speculative. People should be able to invest in what they want.

Obviously people should do their research on things like options. It is more risky, but taking that away from people isn’t the right move in my opinion. Robinhood has been known to bring investment resources to people who wouldn’t otherwise have it.

It’s very popular with younger people who didn’t know anything about stocks a few years ago. Now, a lot of them have become very educated. I see it online. People like to give people on social media a hard time because they act like they don’t know what they are talking about.

There’s actually good research from people on things like Reddit and Twitter where I have seen a large number of people using Robinhood. I think overall it’s a huge net benefit in America. In general, it’s a good thing.

Now is the Time to Get Into Crypto

Paul: We side with the American people. We side with Robinhood. We think lots of people having access to Robinhood and learning about stocks — Robinhood gives out a free stock, which immediately gets people to look at the stock, understand the stock market, research it, talk about it with their friends.

They start to save their money to put it into the capitalist system and entrepreneurs that are growing their businesses. They are learning about options, which engages the mind. Apparently, those are all negative things. As a smooth transition into Crypto Flash Trader, Charlie Munger would ban your service.

How dare people trade crypto? How dare you, Ian Dyer, have a service to allow people to buy and sell crypto?

Ian: I’m glad he’s not in charge. That would 100% be the case. I think he and Buffett called BTC “rat poison squared.” I think they still hate it and think it’s going to zero. Even if you do some basic research on it, you will know it’s not going to go away.

Paul: $33,000 left to go to zero. I will not hold my breath on that. Plus, they told you that when it was $4,000. I’m not holding my breath for their predictions.

So we launched Crypto Flash Trader. For those who are unaware, this is our very first crypto trading service. It’s going to be phenomenal. Ian has been trading crypto. How long have you been trading, Ian?

Ian: I started buying in 2016. So the better part of five years.

Paul: Ian has been into it. I have been truthful and told people I thought crypto was in a bubble and I completely changed my mind. Ian is the one responsible for that. Ian had so much conviction on that. I respect Ian’s opinion and his intellect. He’s one of the smartest people I have met in my life.

It’s a privilege to work with you, Ian. I thought, “If this dude is still on this, I must be wrong.” I went and read everything I could. I studied monetary systems through some of the books I bought. I saw what was going on. It’s just a change in the monetary system.

It happens every once in a while, maybe every 200 years. This is an incredible opportunity. I flipped. Tell us about it. We launched the service. If you want to watch Ian’s presentation, click here. It will send you to Ian’s video on Crypto Flash Trader.

Tell folks what they can expect in the coming weeks and then we will talk about what’s going on in the crypto world.

Ian: Like I said, this is a good time to get into crypto. Things are still low and it looks like it’s going to ramp up soon. I think we will see a rebound in the next couple of weeks. This service is a pretty short-term trading service. We want to get in and out of our trades in one to three months.

It’s not like Profits Unlimited or the longer-term services where we hold one to three years. It’s actually a big benefit in crypto. Things move fast. When they do, they can go flat or come back down. There’s a lot of volatility. Our goal with the service is to get in when things are hot and get out in time to miss a lot of that volatility.

Buying and holding crypto is still a great thing to do too. There’s a ton of these companies or projects that are only a couple of years old at this point. This is like getting into the internet in the late 80s or early 90s. Long term, you will be fine if you want to endure the volatility.

This is an alternative to trade through the volatility, capture as much of that upside as possible while missing out on as much of the downside as possible.

Paul: The reason we started a crypto service is because we do own BTC and ETH in Profits Unlimited. We hold through that. For those who don’t know, that’s the crypto term for buy and hold. People have endured through massive volatility in Profits Unlimited.

We put it in around $10,000 and it’s gone to $64,000. Now we’re back to $33,000. We have some massive price targets. Give yours and I’ll give mine.

Ian: For BTC, I had the prediction of $115,000 by August. We have a few weeks left, but that’s not looking too great unfortunately. I do think BTC has a bright year ahead of it. I am still bullish and believe it will hit $350,000 by next June. I think ETH will hit $8,000 by the end of this year.

Paul: My prediction is for BTC to hit $250,000 by the end of June and for ETH to be at $20,000 in the same timeframe. The reasoning is, you can make these predictions as part of the mathematical underpinning in BTC for sure. Then the transparency you have with ETH or any crypto.

You always know what’s in the circulating float versus the loose float. You can tell all these things you could never do with the stock market.

Ian: It’s way more transparent, which is another huge benefit that Charlie Munger probably doesn’t like about crypto. There’s a lot of great information you can see. There’s a service called Glassnode that records all this data. You can see how many addresses are holding certain amounts of BTC.

You can see what miners are buying and selling. You can see when whales are buying and selling. There’s very useful data you can go off of. The amount of BTC on exchanges is another one. In May and June there were a lot of BTC sold on exchanges.

The price was going down and there was a lot of fear from the market. But over the past couple of weeks, BTC has been flowing off the exchanges, miners have stopped selling. I think things are looking good. It looks like people are going into accumulation mode again.

I believe big buyers were in accumulation mode this whole time. I think the time we will stick around this price level is limited at this point.

Paul: You sent me an article that I believe can act as a partial catalyst to this happening. It says Aave Pro to launch in July for institutional access to DeFi markets. In the article it says Aave Pro will allow large corporations and financial clients to access DeFi while being able to comply with regulations.

Aave, which we have talked about a little, alongside Compound, Uniswap, Maker, Curve and Chainlink are referred to as the blue chips of DeFi. Talk about Aave’s role.

Ian: Aave and Compound are the money market platforms for DeFi. You can borrow and lend money on there. For example, USDC is a stable coin pegged to the dollar. A lot of people put their fiat into USDC because they can earn way higher rates in things like Aave than they would in money markets or savings accounts.

These are super useful. Aave announced they are going to launch their pro system and Compound announced they are doing something similar. This is going to be huge for institutions. They are not going to go for 0.01% at the bank if they can get 4% on Compound.

You can do that or put other crypto in there and earn interest on it and you can borrow against it. You can have a margin account setup and borrow against your crypto. It’s very useful. It’s something that regular people don’t have access to in the traditional financial system.

I think these two projects are going to explode.

Paul: From our perspective, when you look at all these projects push out and start to get institutional money, crypto is now starting to attract hundreds of millions or even billions of dollars to come in.

Ian: Exactly. There’s so much money out there. The global financial system is $90 trillion at last look and that’s probably a little old. At this point, it’s probably more than $100 trillion. There’s a lot of money out there. The market for these companies is huge.

Paul: Now crypto is offering two types of return, which creates a lot of movement in. Like you said, you can get 4% returns on Compound. I believe Coinbase announced they too are going to be offering — I forget what they are offering. I think with USDC they are going to be offering a high interest rate.

Ian: Yes, 4%. Same as Compound.

Paul: This is going to draw institutional interest. They are going to say, “Why should I have my money here?” In the regular system you might have negative interest rates at some point in time, versus having it in Compound, Coinbase or Aave Pro. We can see over the next few months, given that bond are going down, people will start to take some of their money and start to push into coins like this.

Ian: Another thing about Aave and Compound, I don’t know if it will apply to institutional, but when you put money in there whether you are buying or lending, you get paid in their governance token. So you get Aave token if you use their platform and then Compound tokens if you use theirs.

That’s an extra incentive. By default, you are an investor in that platform just by using it.

Paul: For folks who are unaware of how the crypto system works, when you own a token, it means you end up holding that. Now, if the price is rising, you might buy more of it. As you participate in the platform itself, you earn the token.

That drives gas fees, which drives demand for ETH. Now you can start to see another big bull market run begin. We have gone on a long time on the IanCast but I want to talk about one thing you brought up to me. It’s a chart about the global impact of BTC on CO2 emissions.

You put up this chart which has all the non-BTC emissions. It is about 37 trillion tons of emissions. Then there’s little BTC, which represents about 0.13% of all of that. This is a piece of FUD a lot of people have been pushing out a long time. Mainstream media seems to be sympathetic to this idea.

They have been trying to use it to get people to not buy into BTC and crypto. The truth is, why is BTC in a special category of its own?

Ian: Another thing is, they like to compare the energy use of BTC to some small country that doesn’t use that much energy and say, “Because it’s a country, BTC is crazy.” A lot of the energy usage from BTC miners is sustainable energy. It’s like they can’t do anything right.

If they go sustainable, they are still using too much energy, even if it’s renewable. It’s a weird piece of FUD that won’t go away. I think people realize that. For all the hate Elon Musk gets, he probably turned some people to this side.

He might have said BTC was bad with carbon emissions, but now it’s getting so much publicity that when you research it you will see articles about how that’s not true. These mining companies are switching too renewables and most of them were heading in that direction anyway.

If anything, this just accelerated all that.

Paul: How much CO2 is driven by the current mining industry? It’s got to be huge. The banking industry? I’ve never seen an estimate of that. It’s a large industry. Not counting all the other destruction of the banking industry.

In the financial crisis, they caused trillions of dollars’ worth of cost and human misery. I suppose none of that counts.

Ian: There was a report on this actually. The banking system uses way more energy than BTC. They have a lot of banking centers and things like that they use. It’s an absolute ton of electricity.

Paul: We will close this out quickly. I want to put up this chart and have you talk about this. I know I’ve put you on the spot about this. Talk about your $25 trillion prediction for crypto. That’s the underpinnings of Crypto Flash Trader. It’s why we feel so confident now to start this service and take advantage of these low prices.

To set you up for that, there is this chart from Visual Capitalist that shows BTC is the fastest asset of any kind to get to $1 trillion. It’s below $1 trillion now, but when it was $1 trillion, it was the fastest to get there. Faster than Microsoft, Apple, Amazon and Google.

You were on the Profits Unlimited weekly update and you talked about this. Reprise some of what you said for the IanCast.

Ian: There’s no time horizon for this. I guess if I had to give one I’d say the next two or three years or do. I do believe that the crypto market total value of all the coins combined could hit $25 trillion. The basis for that is, for BTC I use my $350,000 per coin prediction and if that’s the case, the market cap would be around $7 trillion.

ETH I have a target of $3 trillion for the market cap. Another big part of this is stable coins. USDC is a huge deal because it’s the on ramp from fiat to crypto for a lot of people. Also, that’s going to be the way institutions get it. They are not going to want to transfer a ton of dollars into BTC.

They are going to want to go into stable coins because they are going to want to have some cash earning interest too. Stable coins have blown up this year. I think at the beginning of the year there were $24 billion and now I believe it’s around $150 billion.

That kind of growth for six months is crazy. I think by the time this market is more mature and as institutions do buy in and trust the system, I think the stable coin market is going to be worth $10 trillion. I think a ton of money is going to flow, not even necessarily into crypto coins, but into the crypto system.

It’s a way easier way to make money. It’s a way easier way to transact. $7 trillion for BTC, $3 trillion for ETH, $10 trillion for stable coins and the remaining $5 trillion I think is going to be the rest of the market combined. I think dozens, if not at least 100, projects are going to stay.

It’s not just going to be DeFi powering crypto. I think we are going to see other things emerge that we haven’t thought of yet that’s going to take up market value as well. I think $5 trillion is very doable in the next couple years. We haven’t seen anything yet in terms of institutional adoption.

I think $25 trillion is very doable within two or three years from now.

Paul: I have said that makes sense from a historical perspective for me because the agrarian, commodity-based economy could only generate wealth at a certain rate.

Then the Industrial Revolution comes and is able to generate wealth at a much faster rate. Then we have the computer, digital revolution come and it generated the first trillion-dollar company when it was unthinkable in the industrial world. Now, we are in that post-digital world and in the crypto world.

The wealth is going to be generated much faster, which is why when you said that I thought you were right. That’s going to happen. We are talking about a 20x return. The total value of all crypto today is $1.3 trillion.


Ian Dyer

Ian Dyer

Editor, Rapid Profit Trader

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