Let me level with you. I haven’t written about cryptocurrencies in these Hypergrowth Investing issues for quite some time. Frankly, I haven’t found many good opportunities in the crypto markets for a while.
The reality is that we’ve been stuck in a deep crypto bear market. And in that market, all cryptos — even the good ones — have been crushed.
But I’m breaking the trend today and writing to you about cryptocurrencies. Indeed, for the first time in 2022, I’m smelling an opportunity.
This isn’t just any opportunity. It’s an enormous one. It could be equivalent in size and scope to the best investment opportunities of the past 50 years.
And you need to hear about it today.
The Dot-Com Boom and Bust 2.0
What we’re currently seeing in the crypto markets is a rerun of the dot-com boom and bust of 20 years ago.
The parallels are truly uncanny.
In the 1990s, there was an emerging technology called the internet. Some folks thought it would fundamentally reshape the world and rewrite the rules of trillion-dollar economic systems. Others laughed it off as an overhyped, unnecessary tech platform.
In the 2010s, there was an emerging technology called the blockchain. Some folks thought it would fundamentally reshape the world and rewrite the rules of trillion-dollar economic systems. Others laughed it off as an overhyped, unnecessary tech platform.
In the late 1990s, internet stocks started to soar. And the internet “bull camp” grew bigger and louder than ever before. Suddenly, new internet startups were emerging left and right. Many had no business plans or tangible products but were fetching multi-million-dollar valuations because they had “.com” in their name.
In the late 2010s, cryptocurrencies started to soar. And the crypto “bull camp” grew bigger and louder than ever before. Suddenly, new crypto startups were emerging left and right. Many had no business plans or tangible products but were fetching multi-million-dollar valuations because they were built on the blockchain.
At the turn of the decade from the 1990s to the 2000s, internet euphoria peaked. Subsequently, internet stocks crashed 70%-plus, with some high-profile implosions such as the $70 billion wipeout of Enron.
At the turn of the decade from the 2010s to the 2020s, blockchain euphoria peaked. Subsequently, cryptos crashed 70%-plus, with some high-profile implosions such as the $70 billion wipeout of Terra.
We are quite literally reliving the dot-com boom and bust in the crypto markets.
The October 2002 of Crypto
Ostensibly, that sounds spooky. But it’s actually really exciting because it means we stand at the foot of a Mt. Everest-sized opportunity in cryptos.
Let’s extend the dot-com parallel out a few years.
In October 2002, internet stocks bottomed after dropping about 70% off their 2000 highs. Over the next 19 years, as the internet did go on to change the world, they soared about 1,200%.
If this historical parallel holds up, then we’re simply waiting for October 2002 all over again. We’re looking for that generational bottom in cryptos. And as the blockchain redefines the global economy, they’ll go on to soar more than 1,000% over the next decade.
Well, guess what? The crypto universe’s “October 2002” moment could be just around the corner.
Like Buying Amazon for $5?
Internet stocks bottomed in 2002 after a 70% plunge from their all-time highs. By comparison, the whole crypto market is currently about 60% off its all-time highs.
In other words, if the historical parallel between cryptos and stocks holds up, then cryptos are in the ninth inning of this selloff.
A few more bad days, and we could be at rock bottom. Indeed, we could be on the cusp of a 1,000% gain across this whole market over the next decade.
But to capitalize on this opportunity, we have to be careful.
We can’t just go out and buy cryptos. We have to buy the right cryptos. Selectivity is going to matter more than ever.
Let’s revisit the dot-com example.
In the aftermath of the dot-com crash, we saw significant dispersion in the quality of internet investments. That is, over the following decade, some internet stocks were fabulous investments. Some were good investments. Some were decent, and some were awful.
But Oracle (NYSE:ORCL) was simply a good investment, doubling over that same period.
Cisco (Nasdaq:CSCO) was a decent investment, rising 17%. But Microsoft (Nasdaq:MSFT) and Intel (Nasdaq:INTC) were terrible investments. Both stocks actually dropped in the 10-year stretch after the crash!
We suspect the same will be true in the aftermath of the current crypto crash.
Finding the Winners in Crypto
Some will turn into fabulous investments for the next decade, with 1,000%-plus return potential. They’ll be the Amazons and Apples of the Crypto Revolution.
Other cryptos will be good investments. Others will be decent. And the majority will be awful. Frankly, my team and I believe 98% of cryptos in the market today will go to zero (just like 90%-plus of internet startups did ~20 years ago).
Our job is to find the fabulous investments in this wreckage.
That’s a tall order. There are more than 6,000 cryptos in the market these days. And 98% of them will fail. Maybe only five or six cryptos in the market will rattle off 10X or greater returns over the next decade.
But despite the seemingly impossible task of identifying the 0.1% of cryptos that will soar, we’ve developed a quantitative tool to accomplish the impossible.
I’m talking about a multi-factor, programmatic model we’ve developed in-house to grade the quality of individual cryptos quantitatively and objectively. We use the system to sift through the noise in the crypto markets and find the ones positioned to soar.
The Final Word on the Crypto Markets
What we’re observing with crypto is a rerun of the dot-com boom and bust from 20 years ago.
Fortunately, it appears we’re in the final innings of this rerun.
That’s bullish because after the necessary cleansing of the internet market in 2001, companies like Amazon, Google, Microsoft, and Apple rose from the ashes. And over the next 20 years, they fundamentally reshaped our society and economy.
Buying Amazon stock in 2001 will go down as one of the best investment opportunities in the history of capitalism. It was a nearly $4,000 stock not too long ago. In 2001, it was selling for $5 a share.
Make no mistake. We’ll see similar investment opportunities emerge in the crypto space soon.
Within the next 12 to 24 months, some of the opportunities that emerge in the crypto markets will be like buying Amazon stock for $5 in 2001.
But we have to be selective. And to be confidently selective, we need a quantitative tool to help us grade cryptos.
We’ve developed that tool. In fact, to my knowledge, we’re the only public research firm in existence to have developed such a tool.
And next Tuesday night at 7 p.m. Eastern, we’ll unveil it to the public for the first time.
Reserve your seat to that special event. And gain access to our free report, “10 Widely Held Cryptos Knocking on Death’s Door.”
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.