The difference between gold and Bitcoin couldn’t be more distinct than in times like these.
In 2017, our inbox was bombarded, basically on a weekly basis, by subscribers, who bought our Bitcoin $490 alert, or our Ethereum $19 publication, our Dash $88 coverage, or our full-blown profile on Litecoin at $43.
Many of you made a killing.
Now, the next step is making sure that, going forward, you realize the rules of the game have changed for good.
The greatest speculative bubble of all time was Kuwait’s Souk Al-Manakh stock bubble in the early 1980s. Kuwaitis would pay for stocks using post-dated checks. Billions of dollars’ worth of unsecured checks caused the stock market to trade for ungodly prices.
Oil fortunes started in the 1970s in Kuwait.
By the summer of 1981, an unofficial over-the-counter stock market was formed called the Souk Al-Manakh. It was a time of indulgence and of buying Rolls-Royce cars, until it imploded.
The Dutch tulip mania was another classic bubble, but unlike the Kuwait stock market bubble, tulip flowers were more than a mania – they reached craze level.
Blockchain technology isn’t a bubble, nor is it in decline, but in the same way that the NASDAQ boom and bust wiped out the majority of projects, which IPO’d in the late 90’s, so will countless cryptocurrencies projects and ICO’s disappear soon.
Investors won’t fund them anymore.
There’s no doubt in my mind that, as a whole, cryptographic projects aren’t going away, nor will blockchain technology.
Cisco, for instance, is developing a blockchain patent right now, which will be used globally, many countries are finally drafting tax laws, including EU-block countries and Asian leading zones, banks are using blockchain technology, from small to big, data storage is beginning to become popular with the technology, Intel is yet another giant, which is working on a patent to reduce energy costs for mining, and Audi wants to track its global distribution using blockchain – this is only the start of adoption.
But, investing in a fast growing sector could be very bad for investors, if the consensus is that the sector is not only on the path of fast growth, but is invincible.
When this happens, prices are marked for perfection and projects can only disappoint.
This is what happened in Q4 of 2017.
It will not happen again, but in terms of industry potential, the surface hasn’t been scratched yet.
Personally, I’m keeping a close eye on regulators.
It’s important to understand how governments intend to push their agenda in 2018. The worst case scenario is that they outlaw Bitcoin or select cryptocurrencies, in general, because they launch a government-owned coin in their place. The best case scenario is few regulations, aimed mostly to protect consumers, letting the free market do the rest.
Right now, to me, is a fantastic opportunity as an investor.
I’m scheduled to attend a number of conferences, as well as meet with several management teams, as now it’s a buyers’ market.
People are scared, which is why you need to be studying this sector immediately.
For blockchain tech to emerge as the efficient upgrade to the Internet of Things, businesses need to adjust and begin shifting their respective business models to the blockchain itself.
Dragonchain (DRGN), for example, is a project our team is looking into right now. It was developed at Disney’s Seattle office in 2015/2016 before being released as open source software in late 2016.
It runs on the Ethereum blockchain, and its function is to offer services that allow businesses to integrate blockchain tech.
Developers can also build and store smart contracts with Dragonchain, using the wide variety of programming languages supported – this use-case is becoming an integral part of the crypto economy.
The Dragonchain Marketplace presents businesses with the ability to access data on other companies and projects.
Data regarding other topics can also be accessed and exchanged using the native digital asset DRGN, which means users can harness vast amounts of information that is verified and from trusted sources.
There is already a wide variety of businesses working with Dragonchain and its crowd-scaled incubator platform, such as Look Lateral – Liquid Art, Seed2You, LifeID and ClevX.
With a platform that offers a decentralized data marketplace, businesses must be able to exchange information securely.
What Portfolio Wealth Global is that the ecosystem has five levels of consensus, and security increases as the verification level for a block increases:
- Business (Approval) Verification
- Enterprise (Validation) Verification
- Network Diversity Verification
- External Partner (Notary) Verification
- Public Checkpoint Verification
Remember, though, the mania phase is gone.
The Bitcoin millionaires have made their early fortunes. Now, it will take real investors and real projects to drive this industry ahead and generate billions for prudent tech experts.
Demographics are favorable, and the need for financial technology in the 21stcentury is certainly there.
Portfolio Wealth Global is now looking into artificial intelligence as well. This sector is truly in its infancy, and we intend to be 3-4 years ahead of the crowd.
It will equal investing in Bitcoin at $50 per coin – Many updates to follow.