Every comparison between crypto and the stock market is wrong.
It’s got nothing to do with what any individual so-called “expert” says, not even me.
That’s because crypto is nothing like we’ve ever seen before, and I don’t mean that in the way every startup founder means it when they are panhandling for VC money.
I mean it in the way that crypto combines two factors in the financial world that have never been brought together before.
First, it’s a new asset class. Those are incredibly rare – so rare that we haven’t seen a new one since bonds in the 1600s. That’s before we had steam engines. That’s before America was its own country.
A new asset class emerging into a world that’s had an industrial revolution, and globalization, and the internet? Totally unprecedented.
Though we can’t predict exactly where things we go, there are a few things I know for sure.
Market Patterns Are Emerging
What separates cryptocurrency from other asset classes is accessibility.
Everyone in the world can own crypto and can use digital currency.
And while many people own stocks and bonds, what they do besides accrue value doesn’t really matter at all to anybody but a very small group of people.
Cryptocurrency is a financial equalizer, and has already been a source of incredible wealth creation.
But the biggest gains are likely still to come. The crypto markets are incredibly young, and with that comes volatility.
Most cryptos are trash cryptos and will crash because they’re useless, but quality assets like Bitcoin (BTC) are something entirely different, and they’re already following a pattern.
It starts with a rally, gains massive value, and then recedes back to a level that is still much larger than it was before the rally. That’s what happened in 2017 when BTC went from a $1,000 to a $10,000 asset in less than one year.
After bouncing between $10,000 and $20,000 between 2017 and 2020, Bitcoin rallied again, but this time…it peaked at $60,000.
Is this pattern going to stay with us going forward? It’s impossible to say. But if it does, we’re at the bottom of a valley that comes right before a peak bigger than this market’s ever seen before.
Here’s one more thing I know for sure:
The global economy is inching towards $100 trillion in value. Crypto is about $1 trillion. The biggest factor for where crypto goes in the future is going to be adoption.
Cryptocurrency going mainstream isn’t a question of “if,” but “when,” and once that happens, early investors (and yes, that can still be you) will see unprecedented gains. (Here’s why.)
And finally, I can’t see the future, but I know don’t need to in order to make money. Because I eat, sleep, and breathe digital assets – I can already see which cryptocurrencies are the most likely to succeed, and I can show you how, too.
Want to learn more? Watch this.
Chief Crypto Strategist, American Institute for Crypto Investors