I’ve lost a LOT in the crypto market downturn. So when I say it’s been hard on investors, I really know. Nonetheless, this could be a brilliant time to invest in the market, Bitcoin and Ethereum, in particular. Tune in to learn about the whale who has entered the crypto party and why the Merge and ESG (environmental, social and government investing) crowd is more likely to join as well.
My book, “Building Indestructible Wealth: The Six Figure Earners Guide to a Multimillion Dollar Portfolio,” just launched. Get your print and audiobook copies and a few other timely insights into what to invest in right now at this link: https://bit.ly/3xjGFQ7
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TWO Major Announcements Say: It’s Time To Buy More Bitcoin AND Ethereum
I am so excited about this episode. I put a lot of pressure on my editor, Jess, because she’s leaving for a trip but I didn’t want to go to record this until I was very confident in my research and in what I have to share with you. Here we are. I’m releasing to you guys some important updates about the crypto market that are exciting and bullish. It’s going to help you create some wealth.
Before we dive into that, we are heading out to Mexico in a couple of days for a quick four-day trip with my wife and little teenage kids to torment us and disrupt our vacation. This is all about Jack and Kara having fun together in Cabo with a lot of our good friends in our direct sales business. We do earn two trips. That’s why we are going on trips is that we not only take a family vacation. We also get to earn vacations per year. What an incredible opportunity. I’m so glad that I had the foresight several years ago to say yes, sign the bottom line, to have a bunch of people make fun of me, and yet now here we are. We are living a great life in the top 1%.
I took a ton of hard work, but there’s nothing in life that is going to reward you more than taking a chance on yourself, saying yes to yourself, and then go into work believing in your dreams and in your future. Am I excited that it’s in the middle of August when I honestly would be fine and very happy on my new private golf course? Shanking balls, throwing clubs, cussing out, having my wife tell me she’s never going to play with me again or being in Cabo same temperatures as here. All you can drink. All you can eat. That’s fun too. We are going to go. We are going to have a great time and we’ll probably be posting some pictures on our story. Make sure you follow us on Instagram so you can catch all the latest and greatest trips and the escapades from Jack and Kara.
Putting This Crypto Winter To Context
With that, let’s get into the goods because I’m quite sure that you guys are wanting to know what’s happening and why is it time to buy more Bitcoin and more Ethereum when it’s absolutely been a total bloodbath. Let’s back up a little bit. The crypto winter in 2018. It was a very painful time for crypto investors. Although I made a relatively small investment into Bitcoin. I watched a drop nearly 80% in a very short time span, and it stayed there for a long time, a couple of years.
It was so discouraging. I literally did not log into my Coinbase account for nearly three years, and that’s the best way to invest. Sit it and forget it, and don’t stare at it. My mom always told me, “A watched pot never boils.” Contemplate that wisdom from Mary Jane Gibson. I never sold and looking back, I should have bought more, but I wasn’t as knowledgeable in the space. I hadn’t done my research as much as I have now.
At least I didn’t panic sell one of the greatest assets in human history. That’s because I believed in the research that I had done and that research showed me crypto was still in its early stages of adoption. Adoptions, how many people are using it. As long as I got the adoption story right, I knew Bitcoin and the overall crypto market would eventually go back and rally to new highs, and that’s exactly what happened. I didn’t know it was going to happen that the rate that it did. From its crypto winter debts, Bitcoin skyrocketed 2000% to an all-time high of nearly $70,000 in November, 2021. As Bitcoin goes, so goes the rest of the market including the altcoins and the overall crypto market rose from around $100 million to more than $3 trillion.The best way to invest is to just sit and forget it. And don’t stare at it, because a watched pot never boils. Click To Tweet
I have told you this many times as well, the journey to mass adoption, where everybody on the planet or 90% of people is probably more realistic. It’s a marathon. It’s not a sprint and I have repeatedly said, this is a very volatile asset class, and with 100% certainty, we know there will be more big drops before we reached the finish line.
Volatility continues to negatively affect the financial markets and digital assets like crypto have been hit especially hard. The industry is also reeling from the collapse of several token projects and hedge funds, and much of the industry is still waiting for another shoe to drop. I know this is a painful time for digital asset investors. I have personally seen my own investments in this space sink from, their all-time high to where they are at now, nearly $500,000 down as the broader crypto market decline.
You’ve heard that right. My crypto has dropped almost $500,000 in few months. I’m not concerned at all. In fact, more upset about my recent golf lack of good solid performance. Although, I did win $600 and hustled my buddy Scott who challenged me on my new course. I digress. When crypto crashed nearly 70% from its November, 2021 highs, I was more emotionally prepared to deal with this long-drawn-out bottoming process because I have been through it before now.
Not to that magnitude of loss by any stretch, but I have been through it before and having the patience to work through it. I have been very cautious, expecting this bear market to drag out and possibly break to lower lows. I haven’t told you much about buying over the last few months because I wasn’t too sure.
Why This Crypto Winter Will Be A Short One
However, two catalysts have changed my mind. These are extremely bullish developments that will force this crypto winter to not last nearly as long as the previous one. This is going to be a short winter based on what you are about to know. We have a $10 trillion Titan coming into Bitcoin. Unlike the last crypto winter, when nearly every institutional player walked away from Bitcoin as a dropdown 85%. The biggest institutional player in the game set it’s entering the space. They are called BlackRock, the world’s largest asset manager with over $10 trillion under management. That’s larger than the GDP, the Gross Domestic Product of most countries in the world. They announced a partnership with the crypto exchange Coinbase. Coinbase stock just cranked. I’m glad I bought some of that when it bottomed out a few months ago. Let that settle in for a moment.
BlackRock says its institutional clients. Institutional money. Those are big clients with millions of dollars. They want access to the space so badly that it’s teamed up with Coinbase to provide them an access point to crypto assets.
According to Bloomberg, it’s a big financial publication. BlackRock said the focus of the partnership with Coinbase, which is the biggest “US crypto trading platform” will initially be on Bitcoin. “Our institutional clients are increasingly interested in gaining exposure to digital asset markets, and they are focused on how to efficiently manage the operational life cycle of these assets.” That’s from the global head of strategic partnerships at BlackRock. It’s impossible to overstate how bullish this is. Despite all the volatility we have seen in crypto, the biggest institutional investor in the world. The company that has more assets than a lot of countries produce in terms of their total economy in a year, publicly announced it has joined the party. The crypto party is on.
Bitcoin is down 66%. Ethereum is down 65%. The whole space is down 64%. Three Arrows Capital, Celsius, and Voyager have blown up. I have some assets on Celsius that are locked up and I have no idea if I’m ever going to get them back. They are going through bankruptcy proceedings right now. I may or may not get the funds that are in that account. Even an investigation into Coinbase by the SEC Security and Exchange Committee is underway and yet BlackRock is still joining the party. I cannot overstate how bullish this is. BlackRock would never risk its credibility if it was not 100% convinced that Bitcoin and crypto assets were here to stay, and it would never align with a partner Coinbase if a thought his partner would get shut down by the SEC.
Let me be clear. This does not mean the volatility is over. What it does mean as a new buyer has entered the room and a buyer with pockets so deep, it can swallow this space up ten times over. With a buyer like that, yes, we may still drop another 50%, but I can virtually guarantee we wouldn’t say down there for very long. That’s why I’m getting ready to double down again.
Here’s the question. How bullish has this news made me? Not nearly as bullish as the second catalyst. This is where it gets even more exciting. We are fast approaching an event known as the Merge and it will be the most important near-term catalyst for the entire cryptocurrency market. That will be more important and bigger than BlackRock coming into the market which I can’t even believe I’m saying.
What is the Merge? If you haven’t heard about this, this is when Ethereum the world’s second-largest blockchain behind Bitcoin will switch from proof of work to proof of stake. Stay with me here because I’m making this simple because my brain also cannot wrap around complex tech jargon. This means new blocks will no longer be formed by computers that compute very difficult math problems before others. Those are miners.
Miners are going to be no longer essentially welcome in the Ethereum ecosystem. In other words, this means miners like me will no longer be rewarded for mining Ethereum. I have been mining Ethereum with my business partner, Adam for months now and we have successfully mined over 20 ETH. It’s not a huge operation by any stretch. That’s a tiny operation but it’s profitable. When this merge happens, we are going to be forced to mine other coins that are proof of work.The journey to mass adoption is a marathon. It’s not a sprint. Click To Tweet
Although, we are getting displaced. I couldn’t be more excited because this will send the value of my Ethereum to new all-time highs. Instead, new blocks will be formed by validators who stake their tokens to the network. Essentially, the validation is going to happen on the Ethereum network with actual Ethereum currency versus the computers that are running and trying to solve these problems on a minute-by-minute basis.
This is another way of saying users put up capital upfront as insurance against malicious actors. This is proof of stake. A benefit is that the energy used to secure the network drops by more than 99%. Think about the timing that we are in right now. Climate change and reducing carbon-based electricity. These are daily talking points. This is huge. It also means that big fund managers with the desire to invest into Environmental, Social, and Governance assets which are called ESG.
If you haven’t heard of that before, you want to know the term ESG because this is becoming bigger and attracting more and more attention. These big players will now find Ethereum very attractive because it’s now ESG approved. Global ESG assets are predicted to grow from $35 trillion to over $53 trillion. Not quite a double, but a huge increase by 2025.
When a big fund is focusing on blockchain exposure, Ethereum will end up on the top of the list due to its migration to proof of stake and its liquidity. Ethereum is the second largest crypto, and soon it’s going to cut that carbon footprint by 99% and also produce at least a 5% yield on stake token. People will be able to make 5% cashflow yield on their Ethereum tokens that they are holding while they are waiting for the token to appreciate.
This is going to be even more attractive to the big institutional players. It’s going to make it one of the most sought-after ESG-related assets when it switches from the proof of work to proof of stake. That alone will make ETH a must own for any long-term digital asset portfolio, but there’s another transformation. This network upgrade is enabling that the markets are discounting right now. In other words, when I say the markets are discounting, they are not factoring this into their current price valuations. ETH is being essentially undervalued by those that are going into the market to purchase it. This shift is precisely what I predict will create an extremely attractive by an opportunity for investors in coming months.
Before we get to what the market is missing when it comes to the merge, I want to give you a roadmap of what’s happening with the timing of the Merge. Ethereum developers are notorious for delaying their releases. On the surface, this is very frustrating for investors who want to see their dates met and targets met. For developers, it’s more about making sure that they dot the Is and cross the Ts.
We should not be at all discouraged if we see delays in the coming weeks and months. This is relatively normal. The ETH 2.0 upgrade was supposed to happen years ago, but it’s an extremely complex change. I have no idea what they are doing. I couldn’t explain it to you, but it is a very important that they are careful to get it 100% right. One little error in the code could cause a complete collapse of the entire Ethereum ecosystem. They absolutely have to test to make sure it’s perfect.
The date that’s penciled in for the week of September 19th, 2022 for the Merge is right around the corner. We want to be ahead of the game. We know these milestones are coming up, so we want to be adding ETH to our portfolios right now. Ethereum is supply and demand is about to change big time. This is where we are going to see the most potential in terms of price action in the few months to come.
On Scarcity And ETH Deflation
Ethereum will become a deflationary asset. What does that mean? I’m going to tell you guys a story. When I was around ten years old, I was heavy into baseball cards. That’s all I did and I wanted to become a professional major league baseball player. That was always my dream. My parents dragged me across the country on multiple road trips, forced me into historical museums for entire days and made my sister Emily and I tour one historical home after another.
At one point, we were so fed up. We got smart. We banded together. We sat down on the front steps. We boycotted, protested, and we said, “We are not going into another historical home.” We said that with resilience and slight twins of fear. My dad, when he got angry, he was scary. We didn’t want that but we wanted to stop the madness.
On that trip, we got to stop at Cooperstown, New York, which was the one highlight of that trip and the home of the Major League Baseball Hall of Fame. The only thing I can remember is laying my eyes on the famous Honus Wagner 1909 T206 card. In that year 1988, it was valued at probably under $1 million. Several hundred thousand. It was incredible for one baseball card, but now, it’s sold for $7.25 million for one single baseball card. Why? Simple because it’s the rarest card on the market.
They are believed to be less than 50 in circulation and less than ten in great condition. It’s not because Honus Wagner is that famous of a player, who is Honus Wagner? He certainly doesn’t carry the same weight as a Babe Ruth, Ty Cobb, or a Mickey Mantle or any of our modern-day sluggers. It’s simply an extremely scarce asset, and that scarcity is what’s creating the value.Ethereum is a must-own for any portfolio. The Merge is going to create the perfect opportunity for investors to gain exposure to this industry-leading token. Click To Tweet
Back to ETH. Millions of newly minted ETH enter the market each year. While the amount in terms of percent has gone down over the years, it’s still pretty significant. It sits at around 4%. That’s the annual inflation rate of ETH. That means that at the supply of 119 million tokens, that percentage represents nearly five million Ethereum tokens that are created and issued a new ETH over the course of a year. What we want to focus on here is what happens after the merge.
Several factors come into play, each one with a deflationary effect. To put it another way, each ETH token will become scarcer. Anytime a valuable asset becomes scarcer, it inevitably becomes even more valuable. Think what the government is doing right now. They are printing trillions of dollars out of thin air. This increases the money supply which decreases the value of your dollars. We are all experiencing the pain of fast rising prices with everything that we buy.
Imagine for a moment, if the US government and you’ll have to imagine this. They will never do this that they destroyed a percentage of the total money supply each year. Each dollar would become more valuable with each passing year, but this is exactly what will happen with the Ethereum. This will never happen with our dollar. They don’t want that to happen. I don’t think that would be a positive thing for our economy for multiple reasons, especially with how it would affect imports and exports. That’s a totally different subject. I’m not going to get off into the weeds there, but here are two factors that are going to make the Ethereum deflation event happen.
The first is the number of rewards blockchain validators will receive. Stay with me here. I’m going to keep this simple to give you a high-level view. Right now, the annual rate of new tokens entering circulation comes about $4.85 million. After the Merge, this rate will decrease to range between 180,000 to 1.8 million ETH. That’s a humongous drop. If I try to explain why it’s going to decrease, I feel that you like myself have a good chance of getting a deer in the headlights glossy look, I’m accused all the time of staring off into space when someone talks too much or gets into complicated jargon.
I apologize for that if you’ve experienced it before. You’ve got to stay brief and to the point when you talk to me. That’s my attention span. Understand that this will reduce the amount of new supply of Ethereum tokens issued monthly. The second factor contributing to the downer pressure on new supplies and upgrade that took place not too long ago called EIP-1559. This upgrade takes a portion of the fees paid by users to miners and burns it. This is exactly why we used to be mining one Ethereum per month, and now we are getting roughly two. In two months, we are getting one Ethereum.
This hurt us as miners, but I’m not concerned because it decreases the supply, which increases the value of the ETH that I own. In other words, this means that as the network activity rises, as more people are utilizing Ethereum, more Ethereum gets burned. If we look at May of 2022, the network burned of 200,000 ETH. If we scale that up to one year, that comes to 1.8 million ETH or an inflation rate of negative 1.5%.
This is extremely significant. This is a major supply shock. These two factors will spark this shock in 2023, and this applies shock isn’t receiving as much attention as it should. That’s because most news coverage focuses on whether or not the merge might be delayed. Whatever potential delays may arise, we can ignore the headline news. We need to focus on the bigger picture when it comes to Ethereum 2.0. Not only will supply be shocked, but demand will spike through the roof when the big guys start buying it up in droves.
You don’t need to be an economist. You don’t need to even be technically smart. You don’t need to understand crypto at all. You need to know when supply goes down by quite a bit and demand goes up by quite a bit. You have intense upward price pressure. Long-term, Ethereum is a must-own, I believe, for any portfolio. The Merge is going to create the perfect opportunity for investors to gain exposure to this industry-leading token.
Good Times Ahead
I don’t normally do price predictions. I don’t remember having issued any since I launched my platform, but these conditions are so ripe. I believe in 2023, ETH will hit at least $10,000 per coin. A bit of a disclaimer, and to pad and protect myself with my prediction, 2024, it is a 99.99%, not 199.99% likelihood. Let me be clear.
In the short term, I don’t know that we are out of the woods yet. There are still so many uncertainties guessing what the Fed is going to do with interest rates, the global food supply shortage. The global supply chain shortage in general. The Russian-Ukraine war, which doesn’t seem to want to end any time soon. Highest inflation of 40 years are still very big concerns, but we can now see a way out through the trees when before we were clouded in murkiness. In fact, I wasn’t so sure that this downturn, this winter in crypto wouldn’t last a good solid two years, but now I don’t think that that’s the case at all.
In terms of speaking about mining, I have a very exciting announcement to our mining rig operation should be fully operational. We will have spots and slots available for you to join us in mining Bitcoin. This is a way for you to get into Bitcoin more economically than if you were to go buy it on the public market. As of the current price right now, it’s not a huge savings, but as Bitcoin continues to grow and to continue as these bullish conditions start to increase the price, you are going to be able to dollar cost average your way into Bitcoin over a multi-year period.
Think about this. When Bitcoin is up $100,000 to $200,000 per coin in 1, 2, or 3 years. I don’t know. It’s going to happen. You are going to be able to mine Bitcoin for under $20,000 per coin. That will be your cost that you are going to experience with the cost of the power and the cost of the machines. You are going to be able to be buying Bitcoin a few years from now, essentially at a much lower than market price. That’s the beauty of mining.
Hit me up. Send me an email. Hit me up on Instagram. If you are interested in potentially buying some machines and taking these very coveted and valued slots. I don’t think that they will last that long. There’s a lot of investor interest and a lot of people want to be able to do this. They don’t have the technical expertise, the mining rigs, or all of the things that need to be set up in order to do this.
This took me a year in order to get to this point. That is obviously very difficult for most investors to be able to do on their own, to be able to set up a mining operation. You can plug directly into mind for a fraction of the price of what it would normally take you if you are going to do it anywhere else. Here we go. This is extremely exciting. All of these conditions are ripe. I am going back into the market and I am buying more Bitcoin and Ethereum. When I hang up from this show, I’m going into Coinbase and I’m going to pop some money in and purchase both. Here we go.