[Editor’s note: “Prepare for Gains in the Crypto Boom of 2023” was previously published in April 2021. It has since been updated to include the most relevant information available.]
Well, given the market climate lately, you might think that I’m a fan of cryptocurrencies…
far from it.
I am a firm believer in innovation. and encryption – blockchain In particular – they represent some of the most promising innovations of our time.
Just like the internet before it, the blockchain will fundamentally reshape the world.
This will not happen overnight. But in the long run, I am very optimistic about cryptocurrencies.
Having said that, we are in the midst of a months-long crypto meltdown.
This will likely continue for several more months. And to bring the Internet comparison to its natural conclusion, it will end in the same way that the collapse of the Internet in 2000 did… Few market winners rise from the rubble and shave hundreds or thousands of percent.
Here’s the story.
DeFi is the future
I love cryptocurrencies. More broadly, I love the unhelpful intermediation that is made possible across all industries by blockchain technology.
I will not take into account the details of this issue. But the big picture, with its central and immutable ledger, blockchain is arguably the most disruptive technology since the internet.
A carefully designed ledger enables innately untrustworthy individuals and entities to collectively create trustworthy systems, without the need for any central authority – hence the term “laissez-faire”.
Blockchain technology removes the middleman from legacy systems and replaces them with mass ledgers.
Now… why do we do that?
Because brokers are often not necessary to make profits.
Moreover, they are sometimes prone to corruption (see: 2008 financial crisis).
By removing them and replacing them with automated and incorruptible technology (no salary required), we can make today’s systems and processes more reliable, faster, and cheaper.
The applications here are theoretically endless.
The main use case is cryptocurrency. These digital currencies are creating a new era of Decentralized Finance (DeFi) This does not include major banks as intermediaries to take profits.
And DeFi is the future.
Biggest opportunity in coding now
However, DeFi is not where I see the most bullish side of the blockchain/cryptocurrency mega trend.
After all, DeFi is aimed at non-intermediate banks, such as Goldman Sachs (p), JP Morgan (JPM), And the Wells Fargo (WFC). These are hundreds of billions of dollars worth of companies, and the opportunity for disruption is huge there.
But there are other digital currencies that I feel very strongly can generate huge returns in the long run.
That’s why I like the idea of ”dApps” or decentralized applications.
The central link is that these applications are encrypted on the blockchain. Thus, there is no central authority that “runs” and makes money from the app, either via subscription sales or digital advertising. By removing that central authority, dApps are creating a new generation of truly free software applications.
Often times, these dApps contain base cryptocurrencies. This cryptocurrency is used as a form of in-app currency in dApps or as a motivational token for app developers and blockchain participants.
The estimated value of these cryptocurrencies represents the economic value of the dApp. For example, instead of developers making money from digital ad sales, they make money by owning dApp crypto, which rises in value as more people use dApp.
I firmly believe that dApps will disrupt everything. Future YouTube, Uber, and Spotify will all be dApps.
Who survives the crypto bubble?
This means it’s time to go out and buy a bunch of dApp-related cryptocurrencies…right?
Not so fast.
Cryptocurrency is where online startups have been for nearly 22 years: in the depths of a major meltdown.
Just keep in mind… in 2000, it was Nasdaq It had 5,000 tech companies in the index… By 2003, about 1,000 of them had filed for bankruptcy, while most of the rest were acquired at a fraction of their peak valuations.
Certainly, the internet has ended up turning into the future. From the collapse of the Internet emerged trillion-dollar Internet giants such as Amazon and Alphabet. But the point here is that all the “bonuses” on the Internet have been taken over by a handful of companies. In fact, most of the online startups in 1999 lost their investor shirts.
You will see the same rodeo play with cryptocurrency.
Cryptocurrencies are the future. But all the “bonuses” in that future will stumble upon a few powerful cryptocurrencies. Ninety percent of the coins in existence today will be worthless in a few years.
However, among the ruins, some powerful symbols will appear and fundamentally change the world. They will turn early investors into “crypto millionaires”.
The last word
So the key to making it rich in the cryptocurrency market is to buy the right cryptocurrency – the most technologically advanced cryptocurrency with the most value-added applications.
Which one makes the cut?
The tokens we are excited about are the ones that add value in the real world — cryptocurrencies that use the blockchain to solve real-world problems, such as the energy crisis.
At the date of publication, Luke Lango did not (directly or indirectly) hold any positions in the securities mentioned in this article.
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