A lot of us can remember when the Internet wasn’t omnipresent, when very few of us used it every day.
A time before email, before Google, and social media. A slower, bigger world of paper maps, mailing checks off to pay bills, staying rooted in one spot to make phone calls (and long-distance cost extra).
The Internet, of course, changed everything; we adopted it into our daily lives faster than any other new technology, bar none, in modern history. In 1993, only 1% of global telecommunications were made via the internet. By 2007, in less than a generation, that figure was 97%.
This phenomenon is called “hyper-adoption,” and we’re about to see it happen all over again with cryptocurrency.
Understand this – we’re in the early innings here – it’s still “1993” – and crypto has already generated $3 trillion in new wealth, minting hundreds of thousands of new millionaires.
And, here at the bottom of a steep crypto downturn, we’re being given the chance to take advantage of tremendous upside. It’s not all that different than picking up shares of Amazon.com Inc. (AMZN) for less than a buck, split-adjusted, after the 2000s Dotcom Crash.
The impacts will be profound, and the wealth-creation will be like nothing we’ve ever experienced…
Why Crypto Is Like the Internet in the 1990s
Today, only 3% of the global population owns cryptocurrency, but this likely isn’t your first-time hearing about it. According to a Harris poll conducted last February, 93% of American adults have heard of cryptocurrency, and nearly one-third have traded it.
Again, this isn’t unlike the situation with Amazon. After the Dotcom Crash, its stock price bounced around like an EKG… but its user base went in only one direction – straight up. Back in 1998, the site had just 80,000 users, whereas by 2021, it had more than 175 million.
That growth is reflected in the development of the broader Internet, too.
A Wells Fargo & Co. (WFC) advisory from February 2022 said cryptocurrency today is reaching the same inflection point that the Internet hit in 1996 – the point at which hyper-adoption begins. Between 1996 and 2000, global internet users surged from 77 million to 412 million. By 2010, there were 1.98 billion internet users worldwide, and that number has grown to 4.9 billion today.
We’re at a pivotal moment in the history of cryptocurrency where awareness is high and adoption is accelerating and the next phase of crypto is mass adoption and integration into our lives. I’m not just talking about people investing in crypto, either. Cryptocurrency will transform the economy as we know it with a decentralized currency that exists outside of the control of banks and government.
Businesses and individuals will both use crypto and the blockchain technology associated with it to solve real-world problems and make existing processes cheaper and more efficient. It will be as much of a staple in our everyday lives as the Internet.
Here are just two big-picture examples.
Imagine being able to purchase a home – just you and the seller, with no expensive middlemen. You arrange immediate financing with a crypto bank, and you then register the transaction on your county blockchain, making an end run around the title company.
All of society could benefit, in fact. In the wake of the COVID Crash, Congress passed an immense, $5 trillion stimulus, pumping that money into a tanking economy. For many, that money was a critical “bridge” lifeline, but for others it was unnecessary. Some folks spent their stimulus payments, and some socked it away. And, inevitably, billions were lost to fraud.
However, if the government were able to issue individual non-fungible tokens (NFTs), with specific terms and conditions attached, it could have directed that stimulus with laser-like precision – “$1,000 to be put toward the rent, funding expires at the end of this month,” or “$1,000 to put toward the cost of a car,” for instance.
As the first new asset class since the creation of the bond in 1935, the hyper-adoption of cryptocurrency will be the greatest creator and mover of wealth in the 5,000-year history of money.
To take advantage, we recommend investors start with three specific cryptocurrencies as hyper-adoption unfolds. You’ve probably already heard of these, but its imperative you move now, while prices are low.
Bitcoin was created in 2009 by Satoshi Nakamoto as a response to the widespread distrust of banks that was fueled by the 2008 recession. No one knows the true identity of Nakamoto as they have remained anonymous since Bitcoin’s creation.
This number-one cryptocurrency dominates the digital asset space. Most other cryptocurrencies follow Bitcoin’s price moves. As big-time investors have started looking to invest in crypto, they’ve turned to Bitcoin.
Bitcoin has a limited supply of 21 million tokens, 90% of which have already been mined. Bitcoin’s small supply paired with ever-rising demand will continue driving its price higher.
While later cryptocurrencies added features and capabilities Bitcoin doesn’t have, its first-mover status and position as digital gold has cemented its position as the premier crypto. Even in this downturn, it accounts for more than 50% of crypto’s market cap, a clear signal of its quality.
Co-founded in 2013 and launched in 2015 by Vitalik Buterin, Gavin Wood, Charles Hoskinson, Anthony Di Iorio, and Joseph Lubin, Ethereum was built on the same Proof-of-Work mechanism first pioneered by Bitcoin.
This PoW mechanism uses mining to validate new transactions, add them to the blockchain, and generate new tokens, just like Bitcoin does. However, the Ethereum consortium recognizes the immense environmental impact crypto mining has, so it’s currently running a parallel “test” blockchain using proof-of-stake. This will be known as Ethereum 2.0.
To help address the flaws in its network, Ethereum has introduced a number of exciting upgrades that will make it more sustainable, secure, and scalable. The end goal is for Ethereum to make a full transition to a proof-of-of-stake (PoS) network.
This upgrade means that Ethereum mining will no longer exist, and Ethereum’s price will skyrocket – perhaps even past Bitcoin.
You’ll want to be in a position to take full advantage of this opportunity before that happens.
Created by Charles Hoskinson, the co-founder of Ethereum in 2015, Cardano is the first cryptocurrency founded on peer-reviewed research and developed through evidence-based models. Cardano prides itself on being secure, ethical, and sustainable.
For instance, on April 19, the Cardano team announced it would upgrade Ethiopia’s education system.
Cardano will use its technology to grade students’ work digitally, monitor the school’s performance, and even create a tamper-proof system for recording information. This technology will significantly benefit the country’s 3,500 schools and every student and teacher in them.
If it works, as it should, in Ethiopia, the sky’s the limit for rolling it out on a wider basis, helping out wherever places suffer from traditional under-investment, including right here in the United States.
Cardano uses proof-of-stake to validate transactions, and ensure no money is spent twice.
The beauty of using proof-of-stake is that the ‘block validator’ stakes their own coins for the opportunity to ‘mint’ the new block. This uses significantly less energy than proof-of-work, and the validator will lose the coins they stake if they create a fraudulent block.
This summer, Cardano will undergo a planned “hard fork,” codenamed “Vasil,” that will make its network faster, more efficient, and much less expensive to use. Our Crypto Strategist Nick Black predicts this could send ADA to $1.50 by the end of August, around 275% higher than today’s $0.49 level.