While I remain bullish on precious metals and believe that prices are headed much higher, it has been my cryptocurrency investments that have generated the most excitement (and profits) lately.
Precious metals and cryptocurrencies are complementary assets that share many philosophical/political similarities, so I think investors should consider owning both. Let’s put the ‘gold vs. bitcoin’ arguments to rest. I have gold, silver bitcoin and a few of the more promising cryptocurrencies in my portfolio and the returns have been outstanding.
What type of profit potential exists in Bitcoin and other cryptocurrencies?
Here is a visual representation of what Bitcoin could buy you over the past few years and what it might be able to buy you in the year 2020. The Lamborghini was not placed there for shock value or a joke. The price of Bitcoin was around $5 in 2012 and is $1,200 today. It has gone up 240X in four years, so if it were to go up another 240X over the next four years, you certainly could purchase a Lamborghini Huracan or just about any other car on the market with your initial $1,000 investment.
Past performance is no guarantee of future results. Your starting investment will need to be closer to $3,000 if you want the Lamborghini Aventador.
But seriously, Bitcoin is up over 50% from the low in January to $1,200 today. It was selling for just $400 at this time last year, so investors have seen a 3X return on their money in just 12 months. I first wrote a bullish case on Bitcoin for subscribers back in 2013, when it was selling for around $100 and not yet garnering major headlines as it does today. Bitcoin now has a market capitalization of nearly $20 billion.
While most of the attention is on Bitcoin, 2017 is probably the year of the altcoin, which just stands for alternative (to Bitcoin) digital currencies/coins. There are so many now that it is hard to keep track of them all, but they are ranked by market capitalization, here. I have listed the Top 12 cryptocurencies below.
The #2 coin with a market cap of $4.2 billion is Ethereum. It is up over 5X (400%) since the start of 2017, from under $10 to over $50 per coin. Ethereum’s founder, Vitalik Buterin, introduced smart contracts into the world of cryptocurrency and there are dozens of budding projects being built on top of the Ethereum platform.
Ethereum’s technology has huge potential to disrupt multiple high-value industries, so I remain extremely bullish. In fact, I now hold more Ethereum than Bitcoin in my cryptocurrency portfolio.
But it is not only Bitcoin and Ethereum that have been generating massive gains for investors. Dash started the year around $10, shot up to $115 and is currently trading at $75 per coin. A return in excess of 600% in less than 4 months isn’t too bad!
A Dash competitor/fork, PIVX, more than tripled in the past few weeks from 50 cents to $1.90, before settling back at $1.50 currently. It was trading around 70 cents on Sunday, when I mentioned buying PIVX in the April editor of our newsletter, The Contrarian Report. It has more than doubled in the 5 days since then and I suspect this current dip could be an excellent buying opportunity for long term investors.
I have just finished updating our Guide to Investing in Bitcoin & Cryptocurrencies for premium members. The 8-page guide includes valuable information for how investors can get started profiting with cryptocurrencies.
Our Cryptocurrency Investment Guide covers:
- Introduction to Cryptocurrencies
- My Bullish Case for Cryptocurrencies
- How to Buy Bitcoin and Altcoins
- Which Exchanges to Use
- How to Safely Store Your Cryptocurrency Investments
- How to Earn ‘Interest” by Staking or Running Masternodes
- How to Protect Your Privacy and Remain Anonymous
But if you want the short version:
- Set up an account at coinbase.com and connect to your bank account. Use this link and we both get $10 in free bitcoin. You can then transfer cash to Coinbase and buy Bitcoin or Ethereum. It can take a while to get verified, increase your buy limits and actually receive the bitcoins, but this is the lowest cost method in my experience. If you want bitcoins faster, check out our guide for more options.
- Transfer some bitcoins from Coinbase to another exchange such as Poloniex or Bittrex. You can then purchase Dash, PIVX, Stratis and several other altcoins on those exchanges.
- If you have a large amount, move some or all of your coins off the exchanges to minimize third party risk. You need a little tech know-how, but they are safer if held in a wallet on your computer or ideally a hardware wallet. Back up and encrypt your wallet file. Password-protect your computer. More details can be found in the guide.
Ready to Start Profiting With Cryptocurrencies?
I share my exact cryptocurrency portfolio with subscribers and provide weekly and monthly updates on the markets. I stay on top of all cryptocurrency news, research dozens of initial coin offering (ICOs) each month and present opportunities to subscribers as they arise. We’ve made a fortune in cryptocurrencies over the past year and several subscribers have shared stories, including early retirement, as a result of buying into cryptocurrencies early. It gives me great satisfaction to have played a role in helping them achieve these goals.
The good news is that I believe we are still in the early innings of the cryptocurrency revolution. Less than 1% of the population understands blockchain technology or owns any cryptocurrency. But that will change as more people catch wind of the types of returns that we have been generating by investing in these digital currencies.
If you are new to investing in cryptocurrencies, please make sure that you educate yourself about the risks before getting started and practice sending/receiving small amounts before you invest anything significant. It certainly takes a bit more time and patience than purchasing stocks in your brokerage account, but I have found that the returns are well worth the effort.
I am sincerely excited about the potential of blockchain technology and the investment returns cryptocurrencies have been generating. It is truly revolutionary technology that I expect will impact several multi-billion dollar industries in the same way that Netflix impacted Blockbuster or Uber impacted the taxi business. It is truly a once-in-a-generation wealth-making opportunity for those that invest early.
We are probably the only investment newsletter covering both precious metals and cryptocurrencies with this amount of detail. They are both superior to bank-issued fiat fractional reserve paper notes and they both continue to increase in value, while the dollar loses purchasing power.
Whether you decide to invest on your own or subscribe to our premium membership, I wish you the utmost success in achieving your investment objectives. If you have any questions, please feel free to email me.