Chris’ note: As we’ve been showing you, to make a fortune without a fortune to invest, you need to invest in powerful trends early on. And one of the most powerful trends we’re following in 2020 is the buildout of the crypto economy.
World-renowned crypto investor Teeka Tiwari has been keeping a close eye on developments for his readers. And as he reveals below, two sparks will ignite an epic rally in bitcoin and other cryptos in 2020.
But before we talk crypto, an urgent reminder…
Tomorrow, at 8 p.m. ET, Teeka will hold what could be the biggest live event of his 30-year career. He found a pre-IPO deal so lucrative… he says it could turn $250 into an entire nest egg on the day it goes public.
He’s calling tomorrow night’s event Freedom 2020. It’s going to be huge. So if you want to radically grow your net worth this year, grab a remaining spot, for free, here.
On November 29, 2019, the world changed, and no one noticed…
A cadaverous group of crumpled-suited career bureaucrats came together and did something unexpected. The event was so underreported… it’s doubtful even one in 1 million people is aware of it.
Of those who do know about it, maybe 5% of them grasp how important it is. In the U.S., that comes down to about 15 people in the entire country who get what this historic agreement means.
These lucky few will use that information to make tens of billions of dollars – starting now.
So today, I want to share with you what that information is… and why it will spark a huge crypto rally in 2020.
There are two drivers aligning perfectly right now. These will propel crypto prices to new highs:
The first is a drop in new supply caused by the bitcoin halving event. (The halving cuts the new, incoming bitcoin supply in half. This happens roughly every four years until all 21 million bitcoins that will ever exist are in circulation.)
The second is a surge in brand-new, massive demand for bitcoin and crypto assets. This demand will come from new crypto financial products created by Wall Street.
These will be gateways for investor cash to surge into crypto assets. This is what happened with exchange-traded funds (ETFs). They were gateways for cash to flood into stocks, precious metals, and other commodities.
Since the first U.S. ETF launched in 1993, $6 trillion has flooded into ETFs.
And ETFs have been a home run for fee-hungry Wall Street. I estimate financial firms have made $26 billion in fees from them. I expect they’ll use the same playbook to get their clients into crypto, too.
The fee income is just too tempting for them to ignore. (I peg crypto fees as an $8.3 billion moneymaker for Wall Street every year.) Wall Street financial products drove stocks, oil, and gold to new all-time highs. They’ll do the same with crypto.
The value of all traded crypto assets is about $200 billion. It won’t take much adoption by regular investors to push it past $1 trillion.
Bank of America released a report last month that calculated that ETF assets will grow to $50 trillion over the next 10 years. If that’s true, then Wall Street could rake in as much as $21 billion a year in fees on crypto products.
And the fuse for this catalyst has just been lit…
For this widespread adoption, governments and regulators must allow financial institutions to buy, hold, sell, and create securitized crypto products.
And I have exciting news for you: Last November, Europe’s largest economic power rewrote its laws to allow banks to do just that starting last week.
The German parliament passed something called the Fourth European Union Anti-Money Laundering Directive. It clears the way for German banks to create crypto products, offer crypto trading, and take custody of crypto assets on behalf of their clients.
Friends, when I started writing about crypto in 2016, I prophesied the day would come when we’d see a legal framework to integrate crypto assets into the traditional financial system.
To say those prophecies were met with scorn would be an understatement. Ridicule, mockery, and blunt rudeness were the nicer things I faced when I spoke about the broad acceptance of crypto assets.
But here we are at the start of 2020. And German banking giant Deutsche Bank has released a report heralding the death of cash… and the rise of cryptographic money like bitcoin.
In a report last month, a Deutsche Bank analyst called the fiat (or paper) money system fragile. Jim Reid is the bank’s head of global fundamental credit strategy and thematic research. He expects cryptographic money to overtake fiat by 2030.
Reid went on to repeat exactly what I have been saying since 2016 (emphasis added):
[Although] critics bemoan cryptocurrencies [being] constrained by regulatory hurdles, [I] believe the incentives of governments and card providers are such that digital currencies are inevitable.
German banks, brokers, and hedge funds control about $3 trillion in assets.
Let’s assume crypto becomes widely viewed as an alternative asset like gold. We could see as much as $150 billion flow into crypto – just from Germany.
And if the rest of Europe follows suit, even with just 1% of its financial assets, we could see another $230 billion allocated to crypto assets.
And where Germany goes, the rest of Europe will follow.
It’s already starting to happen…
Just two weeks after the German parliament passed the landmark law, $1 trillion Dutch banking giant ING Group said it would allow customers to store their crypto assets with it.
The pieces are starting to fall into place in the U.S. as well…
Fidelity Investments is the fourth-largest U.S. money manager and broker. In November, New York passed legislation that allows it to offer crypto trading and custody services to its clients in the state.
The state’s Department of Financial Services said Fidelity could launch a digital currency trading platform “on which institutional investors and individuals can securely store, purchase, sell, and transfer bitcoin” for New York residents.
Fidelity has 30 million individual clients and more than 20,000 business clients. But this is just the tip of the iceberg.
There are 500 million stock investors worldwide. Wall Street will be licking its chops to charge fees on a slew of new crypto products it can sell to this pool of new investors.
Even the notoriously strict Securities and Exchange Commission (SEC), the main U.S. stock market regulator, is starting to soften its stance.
On December 2, it shocked everyone when it approved a bitcoin fund from Stone Ridge Asset Management, a New York-based investment firm with $15 billion under management.
The first-of-its-kind fund targets deep-pocketed institutions that want long-term exposure to bitcoin. The fund will mimic the price of bitcoin by investing in bitcoin futures trading on the Chicago Board Options Exchange (CBOE).
The fund is small – at just $25 million. But it marks the start of what could be a tidal wave of institutional cash coming into bitcoin.
What’s so exciting about this news – and what you need to focus on – is it paves the way for the SEC to approve a similar fund that settles in actual bitcoin.
This means actual bitcoin will be pulled from the market and stored with and traded and exchanged between counterparties. For bitcoin holders, the new demand will benefit us by shrinking an already dwindling supply ahead of the halving.
It’s not rocket science. When demand shoots up and supply plunges, prices gallop higher.
Germany is the world’s fourth-largest economy.
It now allows banks store crypto. Germany is the largest economy in the EU… and its de facto leader. So expect the other 27 EU countries to follow suit. That’s a trillion-dollar market.
In the U.S., we’re starting to see the regulatory environment for crypto soften. That will allow Wall Street to bring crypto products to 500 million investors.
And I haven’t even mentioned the fast-growing Asian market, where crypto adoption is already high in places like China.
All of this demand is set against the backdrop of the halving, which will cut in half new bitcoin supply.
Sure, there’ll be volatility along the way. But I want you to look past that and stay firmly fixed on what matters in the long term.
Dwindling supply and growing demand will cause massive prices in all crypto coins… not just bitcoin.
Let the Game Come to You!
Editor, Palm Beach Confidential
P.S. Crypto won’t be the only big investment I’ll be following this year…
Tomorrow, January 8, at 8 p.m. ET, I’ll reveal my No. 1 wealth-building opportunity of 2020. It’s a chance for you to get in on a pre-IPO deal with a billionaire, before it lists on the Nasdaq. Already, this company is drawing so much interest from heavy hitters.
I’m calling this event Freedom 2020… because this one opportunity has the potential to help you reach financial freedom this year.
If you attend this event, you’ll have the chance to secure your stake in this pre-IPO deal for as little as $250. And when it does go public, you will have the chance to fund your entire nest egg that day.
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