This Could Be Your Second Chance
Wednesday, 19 February 2020
By Bernd Struben
- Why bubbles are good
‘This could be your second chance at crypto greatness.’
Secret Crypto Network’s Sam Volkering
Last week I ran across this headline from Bloomberg, ‘Zombie Crypto Coins Beat Bitcoin During This Year’s Resurgence’.
With an affinity for both zombies and cryptocurrencies, I couldn’t help but click through to the article. Which informed me that:
‘The bursting of the crypto bubble was supposed to be the end for thousands of coins that sprung up in the wake of Bitcoin’s staggering success.
‘But guess what digital tokens are outperforming the original as it surges more than 40% to $10,000 this year — coins like Einsteinium and Kick that were written off long ago. Those coins, along with dozens more that are rallying, have more than doubled since December.’
I’d heard of Einsteinium. It’s a good catchy name. But I admit I never heard of Kick. And might not ever again.
Since the above article was penned on 11 February, Kick is down 73.8%.
Einsteinium has fared better. It’s up 5.4%.
Our resident crypto expert, Sam Volkering, tells me some thousand or more alt coins — or crap coins, as he calls them — have disappeared never to return. But there are still 5,000–6,000 coins in virtual circulation.
A lot of them, Sam says, aren’t worth anything.
‘They’re often little more than a technology experiment. There are only a few hundred with some sort of real longevity. These aren’t something that’s just going to disappear.
‘People often don’t understand the way the technology works in a peer to peer network. You can’t just stop these things…you can’t just kill them off.’
Indeed, as you can see in the below graph, you can’t just kill them off.
Source: CoinMarketCap / Bloomberg
What you’ll also notice in the graph is the steady rise in the total cryptocurrency market cap since the beginning of January.
Though Sam urges us to look beyond the day-to-day price charts:
‘It’s not just about the price of bitcoin. It’s far more nuanced and complex.
‘This crypto revolution, at its very heart, is a technology revolution. It challenges our very concept of long-standing ideas like money, assets, ownership, networks, and transactions and interactions with each other.’
The technology revolution in question is blockchain. Not only does blockchain enable cryptos. The technology is increasingly being used to track and verify all manner of transactions and supply chains.
That technology is only going to grow in importance. As, according to Sam, are the world’s leading cryptocurrencies.
In fact, Sam believes we’re about to enter a new ‘super cycle’ in cryptos. Here’s an excerpt from last week’s Secret Crypto Network:
‘If we are about to enter a new crypto wave, a super cycle that’s three years after the start of the last one, we think you should be looking out for the “Next Ethereum”.
‘By that we don’t necessarily mean the crypto that’s going to knock Ethereum off its perch.
‘In fact, we think in the next super cycle Ethereum will also continue to deliver massive opportunity for holders.
‘But we are looking for the ones that will come from further back. Ethereum today still carries a “market cap” of US$25 billion. So it’s starting from a higher rung.
‘We believe that is the one that could march right up to Ethereum and potentially surpass its value. Not only that, but we believe it holds the potential to replicate the kinds of surges we saw from ETH during its bull run of 2017.’
Apologies for blacking out the name of the token. That’s for subscribers to Sam’s Secret Crypto Network only. But if he’s right about this particular crypto, and it indeed rivals ether’s 2017 performance, you’ll be hearing plenty about it in the months to come.
As a refresher, in the 12 months from 10 January 2017 through 10 January 2018, ether soared from US$10.70 to US$1,405.45. Or a gain of 13,035%.
And then it tanked.
If you’d bought in right at the top of ether’s meteoric rise and sold right at the bottom of its collapse you would have lost 93%. And ether wasn’t alone. Bitcoin lost 83% from its late 2017 peak to its early 2019 trough. And litecoin tanked 94%.
Understandably, a lot of burned crypto investors have been hesitant to dip their toes back into the virtual water.
But the crypto sphere is showing a renewed surge of energy in 2020.
More, after the markets…
Overnight, the Dow Jones Industrial Average closed down 165.89 points, or 0.56%.
The S&P 500 closed down 9.87 points, or 0.29%.
The tech heavy NASDAQ bucked the losing trend. Investors shrugged off Apple’s admission the coronavirus’s impact in China means won’t meet its March quarter revenue guidance. The NASDAQ closed up a slender 0.02%.
In Europe the Euro Stoxx 50 index closed down 16.73 points, or 0.43%. Meanwhile, the FTSE 100 lost 0.68%, and Germany’s DAX closed down 102.70 points, or 0.75%.
In Asian markets Japan’s Nikkei 225 is up 196.46 points, or 0.85%. China’s CSI 300 is up 0.52%.
The S&P/ASX 200 is up 19.90 points, or 0.28%.
West Texas Intermediate crude oil is US$52.08 per barrel. Brent crude is US$57.75 per barrel.
Turning to gold, the yellow metal is trading for US$1,600.91 (AU$2,391.56) per troy ounce. Silver is US$18.17 (AU$27.14) per troy ounce.
And bitcoin’s gained 5.3% since this time yesterday. One bitcoin is worth US$10,194.78.
The Aussie dollar is worth 66.94 US cents.
Why bubbles are good
Returning to the renewed surge in crypto prices…
Focusing on the big two, bitcoin is up 42% since 1 January. Ether is up 119%.
Which underscores why Sam believes investors should look ahead, not behind. In Sam’s view, 2017’s bubble was one we needed to have.
‘Bubbles are a good thing. They weed out the speculators and allow the market to re-set. This is what has happened to the crypto market.
‘Today the speculators are less prominent. Instead the market is being driven by big business. The crypto market has evolved.’
Now if you’re reading this and hoping for 13,000% gains, I may have to burst that bubble straight off.
While anything is possible, Sam doesn’t expect a repeat of the 2017 bubble blowing mania. ‘The crazy crypto windfall days are over,’ he says.
But that doesn’t mean there aren’t some potentially outsized gains up for grabs in this still risky market. ‘To be on the right side of this next move up, you need to separate the madness of the crypto bubble and what’s happening today.’
To help all of our paid subscribers get on the right side of this next move up, Publisher James Woodburn got Sam in front of a camera for a sit-down interview.
The interview was just released at lunchtime today.
I had a sneak preview this morning. And no matter your opinion on cryptos, I believe it’s well worth your time.
Not only does Sam offer a wealth of insights into the near future outlook for crypto markets, he shares two potentially lucrative crypto opportunities that are on his radar.
In fact, in Sam’s words, ‘One of the cryptocurrencies I mention in this video has the potential to unseat the world’s biggest crypto and become the one true “crypto king”.’
You can access that video interview — at no charge — by clicking here.
That’s all for today. Be sure to tune back in tomorrow!