The following content is sponsored by the Palm Beach Letter.
Why do some experts see cryptocurrency as this decade’s must-have investment? What exactly is crypto and how can average investors navigate the crypto market’s volatility? To get answers, Breitbart News Editor-in-Chief Alex Marlow spoke with crypto investment expert Teeka Tiwari, whose PickoftheDecade.com presentation and Palm Beach Letter provides investors with a clear explanation of the crypto market and how they can maximize their benefits from this new asset class.
Tiwari said that investors can get value from crypto without having to go “all in” on risky positions.
“When I make investments in crypto, I’ll invest one dollar to make back $100 or $1,000,” he explained. “When you can make that much of a return, you don’t need to make a big investment. So, for instance, back in 2016, I recommended a coin that went from 13 cents to $200. So that turns every $1,000 into about $1.5 million.”
Tiwari’s Palm Beach Letter helps investors navigate the crypto volatility by taking small positions. “I say, look, if you’re a smaller player, put $200 to $400 into an idea. If you’re a bigger player, put $500 to $1,000. The key is you want to make sure that you don’t put your current lifestyle at risk in the pursuit of a better lifestyle. And with crypto, you don’t have to.”
Tiwari’s PickoftheDecade.com presentation provides an introduction into the crypto market and the revolutionary blockchain technology that powers it. Asked by Marlow to provide a “Crypto 101” explanation for people who are new to this terminology, Tiwari started by describing how the blockchain and Bitcoin, the most popular cryptocurrency, works.
“In the traditional world, when we want to exchange value, you and I have to go to a bank to go send a wire if I want to send you money,” he said. “Bitcoin was the first time where you could send money to another person or send value to another person without having to rely on an intermediary.”
Bitcoin does this by using the blockchain technology, which Tiwari described as a “computer code that can verify transactions in a way that is not hackable.” The blockchain functions as a sort of transparent ledger that allows users to confirm exactly how much Bitcoin or other cryptocurrency each person owns because each transaction is verified by thousands of independent computers in the network.
Tiwari calls this blockchain innovation “a multi-trillion-dollar idea” that “has never, ever existed before” and will revolutionize financing by decentralizing it and making it more transparent.
“So, if you’re a crypto investor, what exactly is it that you’re investing in?” Marlow asked.
Tiwari explained that there are two components to the value of cryptocurrencies like Bitcoin: the actual currency itself and the blockchain network that powers these currencies.
“There is the network itself and then there is the store of value on the network. There will only ever be 21 million Bitcoins ever created,” he said. “So, this creates scarcity. That’s why people view Bitcoin as the modern version of gold. That’s why they call it gold 2.0 or digital gold.”
But Bitcoin is not the only player in the crypto market. The other major currency is Ethereum.
“If we can consider Bitcoin to be gold 2.0, Ethereum is akin to Microsoft in the 1990s,” Tiwari explained. “The most valuable software development program in the 1990s was Microsoft and the Microsoft operating platform. You saw hundreds of thousands of developers build software applications on Microsoft, which were then launched on personal computers. The Ethereum network is a blockchain development platform. So other developers go into this platform, and they build blockchain-based applications, and then launch them on Ethereum.”
“Right now, the biggest use of Ethereum has been in something called decentralized finance,” he said. “These are self-sustaining programs that handle things like insurance contracts, lending, borrowing, and these markets have now grown to around $80 to $100 billion of value that have started to aggregate around those markets. These aren’t small little ideas put together by kids in a garage anymore. They’re growing into major lending and collateral based decentralized markets.”
Determining which currency has value can be challenging to the average investor, but Tiwari has a proven track record in picking winners, as subscribers to his Palm Beach Letter have learned. “I’ve picked the top coin and crypto every year since 2016, even when the market was collapsing in 2018 and 2019. And the reason is, is that I’ve developed a methodology for how to value coins,” he said.
Marlow asked how investors can guard against the risk and volatility in this new market.
“Cryptocurrency is the riskiest, most volatile asset in the world. Period. End of discussion. But it would be a mistake to let that stand in the way from you participating in the market,” Tiwari said.
He compared the current crypto volatility to the same swings seen in the past with risky game-changing stocks like Apple, Amazon, and Microsoft.
“Yes, these ideas have risk, but because the upside is so massive, you don’t have to take a large position in them in order to move the needle on your entire financial life. So that’s why I say, tame the risk by using the small position size. If we pull the camera back and go forward five or ten years, it will be the biggest investment mistake of your life if you don’t own some Bitcoin and if you don’t own some Ethereum,” Tiwari warned.
“These two projects, in my opinion, are projected to become worth many multiples of trillions of dollars – the same way Microsoft has become massive, the same way Apple has become massive, the same way Amazon has become massive,” he said. “I remember how Microsoft used to trade in the ‘80s. It would drop 40 percent at a clip. I remember how Amazon would trade in the early ‘00s. I remember how Apple traded in the mid to late ‘90s. These stocks would make you want to jump out of a window. So, the key to surviving that volatility is go small, and then just completely forget about them, and they will change your life.”
Tiwari also sees Bitcoin as serving an important function at a time when rising inflation has diluted the value of traditional currencies.
“I see Bitcoin as an escape hatch as a store of value. Our money, our American dollars are getting diluted at a rate that we have never seen before,” he said. “We have seen more money printed over the last couple of years than in the last 200 years. So, we as people need a way to protect our wealth. Bitcoin is clearly filling that gap as a form of value that cannot be diluted by any type of third-party actor. So, I think that’s the primary use case for Bitcoin – as a way for you and I to hedge against the dilution of our dollars, to hedge against the rapacious state that is just hellbent on diluting our value.”
Bitcoin also holds great political value for everyone who believes in freedom and the rights of the individual, Tiwari explained.
“Our money has always been governed by a king or queen, a prince, a baron, and more recently governments,” he said. “Why should our money be owned by somebody else? Why can’t we own our own value? Why does the government have to be like a king of old that says, ‘No, we have sovereignty over your wealth?’ If you believe, as I do, that your wealth is literally your life force made concrete in the world, then why should somebody else have complete control over my life force? Why should somebody else be able to take my work and dilute it? I think, if you value freedom, if you value self-sovereignty, then you must own a little bit of Bitcoin because it’s the only form of value that no government can take away from you and no government can dilute.”
To learn more about the blockchain innovation and how to get started in crypto investing, watch Tiwari’s PickoftheDecade.com.
Sign up to receive a full 12-month subscription to Teeka Tiwari’s Palm Beach Letter HERE. Check out his presentation on Bitcoin and blockchain and how you can benefit from this new asset class. There are no guarantees in life, but Teeka believes this could be the single best place to grow your money in the next 10 years. Do your own homework and watch his presentation now at PickoftheDecade.com.
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