Bitcoin’s Boom Is Just the Beginning
Did you hear the one about the software developer who bought pizza with bitcoin in 2010?
Laszlo Hanyecz bought two pizzas for 10,000 bitcoins a little over a decade ago.
At the time, bitcoin was valued at a fraction of a cent, and it was the first commercial transaction using the world’s largest cryptocurrency.
At today’s price of over $23,000 each, those bitcoins are now worth $231,500,000!
But you didn’t need to start buying bitcoin 10 years ago to see incredible returns.
Bitcoin’s New High Is No Surprise
In the past two years, bitcoin has risen over 600%.
This year alone, it’s tripled.
Bitcoin’s new high is no surprise. I pointed out a specific catalyst in May that would carry the price to $20,000 by year’s end:
On Wednesday, the chief investment officer of Guggenheim Investments, a $270 billion asset manager, told Bloomberg that their fund has been buying bitcoin since it was worth $10,000.
The reporters’ jaws dropped when he added: “Our fundamental work shows that bitcoin should be worth about $400,000.”
But bitcoin is not the best place to invest right now.
This Is Where the Biggest Gains Will Be Made
The rise in bitcoin will trigger another altcoin rally, just as we saw in 2017.
These are smaller, blockchain-based cryptocurrencies that are paving the way for a reinvention of the online world:
- Ethereum is a smart contract platform that powers a decentralized global computer. In 2020, it’s up 414%.
- Chainlink is a cryptocurrency that adds real-world data to blockchains. That one’s up 692% this year.
- And Aave, a cryptocurrency that allows users to borrow and lend without a bank, has risen 216% since early November.
That’s why I believe the biggest gains will be made in the cryptocurrencies that are changing the way we shop, bank and interact online.
Editor, Automatic Fortunes
My career on Wall Street started while I was in college. I spent a summer interning for Merrill Lynch in the middle of the ‘90s bull market. I was fascinated with trading, and as a result, after college, I joined Salomon Brothers in the famed mortgage bond trading department. Later, I spent time at Citigroup working with credit derivatives. Eventually, I needed to walk away from the excess of Wall Street. That’s when I joined Banyan Hill in 2017. Now I help readers get ahead of the market and build their retirements.