Prepare for gains in the crypto boom of 2023

[Editor’s note: “Prepare for Gains in the Crypto Boom of 2023” was previously published in April 2021. It has since been updated to include the most relevant information available.]

OK, given the market climate lately, you probably think I’m a crypto bear…

Far from.

I am a big believer in innovation. And crypto – blockchain in particular – represent some of the most promising innovations of our time.

Just like the internet before it, the blockchain will fundamentally reshape the world.

This will not happen overnight. But in the long term, I am extremely bullish on crypto.

That said, we are in the midst of a months-long crypto crash.

This is likely to persist for a few more months. And to bring the Internet comparison to its natural conclusion, it will end the same way as the dot-com crash of 2000… with a few market winners rising from the ashes and rising by hundreds or thousands of percent.

Here is the story.

DeFi is the future

I love cryptos. More generally, I love the beneficial disintermediation enabled across all industries by blockchain technology.

I won’t bore you with the details of this issue. But the big picture, with its centralized and immutable ledger, blockchain is arguably the most disruptive technology since the internet.

This thoughtfully constructed ledger enables inherently untrustworthy individuals and entities to collectively create trustworthy systems, without the need for any central authority – hence the term “disintermediation”.

Blockchain removes the middleman from legacy systems and replaces them with a ledger.

Now…why would we do that?

Because middlemen are often unnecessary profiteers.

Furthermore, they are sometimes exposed to corruption (see: the financial crisis of ’08).

By removing and replacing them with an automated and indestructible technology (that doesn’t need a paycheck), we can make today’s systems and processes more reliable, faster and cheaper.

The applications here are theoretically endless.

And an important use case is crypto. These digital currencies are creating a new era of decentralized finance (DeFi) which does not involve large banks as profit-taking intermediaries.

And DeFi is the future.

The biggest opportunity in crypto right now

However, DeFi is not where I see the most upside in the blockchain/cryptocurrency megatrend.

After all, DeFi is meant to disintermediate banks, which Goldman Sachs (GS), JPMorgan (JPM), and Wells Fargo (WFC). These are multi-hundred billion dollar companies, and the potential for disruption there is huge.

But there are other cryptos that I feel very strongly can provide massive long-term returns.

And right now there is a much bigger opportunity in disintermediating technology like titans Alphabet (GOOG, GOOGLE) and Amazon (AMZN) — multi-trillion dollar companies.

That’s why I love the idea of ​​”dApps”, or decentralized applications.

DApps are software applications built on the blockchain. This could be any application – a video media application like YouTube, a driver-rider app like Uber (UBER), a music streaming app that Spotify (SPOT).

The central link is that these apps are coded on the blockchain. And therefore there is no central authority that “runs” and makes money from the app, either via subscription sales or digital advertisements. By removing the central authority, dApps create a new generation of truly free software applications.

These dApps often have underlying cryptocurrencies. These cryptos are used as a form of in-app currency in dApps or as an incentive token for app developers and blockchain participants.

The increasing value of these cryptos represents the economic value of the dApp. For example, instead of developers making money from digital ad sales, they make money by owning the dApp’s crypto, which rises in value as more people use the dApp.

I am convinced that dApps will disrupt everything. And the future of YouTube, Uber and Spotify will all be dApps.

Who will survive the crypto bubble?

That means it’s time to go out and buy a bunch of dApp-linked crypto… right?

Not so fast.

Cryptocurrencies are where Internet startups were about 22 years ago: in the depths of a major crash.

Just think… back in 2000, that Nasdaq had 5,000 technology companies in the index … by 2003, about 1,000 of them had filed for bankruptcy, while most of the rest had been acquired at a fraction of their peak valuations.

Sure, the internet ended up being the future. And out of the dot-com crash emerged trillion dollar internet titans like Amazon and Alphabet. But the point here is that all the “rewards” on the internet were taken by a handful of companies. In fact, in 1999 most Internet startups lost their investors’ shirts.

You will see the same rodeo play out with cryptocurrencies.

Cryptos are the future. But all the “rewards” in that future will be reaped by a few strong cryptos. Ninety percent of the coins out there today will be worthless in a few years.

And yet out of the ruins a few powerful symbols will emerge and fundamentally change the world. And they will turn early investors into “Crypto Millionaires.”

The last word

The key to getting rich in the crypto market is therefore to buy the right cryptocurrencies – the most technologically advanced cryptocurrencies with the most value-adding applications.

Which ones make the cut?

The tokens we’re most excited about are the ones that add real value — cryptos that use the blockchain to solve real-world problems, like the energy crisis.

Find out the cryptos that represent the future.

As of the date of publication, Luke Lango did not hold (either directly or indirectly) any positions in the securities mentioned in this article.