In 2003, one of Apple’s most important products was the iPod. But only people with an Apple computer could easily use it.
So the addressable market was only about 2% of computer users.
However, I knew the company was working on a version of the iPod that would be compatible with personal computers (PCs). And PC users made up the other 98% of the market at the time.
So for me, the decision to buy Apple was easy…
I went out, bought an iPod, and confirmed it was an amazing device. I recognized the iPod as the most transformational music device since the Sony Walkman of the 1980s.
It was a no-brainer that PC users would fall in love with iPods – just as Apple users had. Except, this time, Apple could sell iPods to a market of hundreds of millions of PC users, instead of the tiny market of fewer than 5 million Mac users.
And that’s exactly what happened.
By 2004, Apple’s stock had doubled… And the company was well on its way to becoming the tech juggernaut we all know today. Since the lows of 2003, shares have gone from a split-adjusted 91 cents to around $360 – an astronomical gain of 39,460%.
Now, it didn’t happen overnight. But my clients made a bundle.
So here’s the investment lesson from Apple…
Crypto Adoption Is About to Explode
Looking back, what’s gotten me through the ups and downs of the crypto space is focusing on the big macro drivers.
If you can get the big macro driver right… the day-to-day volatility doesn’t matter.
Here’s what I mean by that…
Shortly after I bought Apple for my clients in 2003, cofounder Steve Jobs dumped millions of shares. The stock collapsed and my clients were screaming at me.
I reexamined my underlying reason for owning Apple. It was simple. I was betting a hot product in a small market would be an even hotter product when introduced to a bigger market.
At the time, the PC market was literally 53 times bigger than Apple’s market. To me, it made sense once PC buyers could own an iPod, they would… and Apple’s earnings would explode (they did).
Now, 17 years later, I’m making the same bet in crypto.
Just like Apple in 2003, bitcoin operates in a relatively small pond of about 35 million users. That’s tiny, when you compare it to a global investor base of 500 million stock buyers.
Think about it logically…
Regardless of what bitcoin’s price is doing today, does it make sense that if you expand the pool of buyers by almost 15x, you will see much more demand for bitcoin?
Unlike the iPod – which Apple could make more of – you can’t make more bitcoin in response to soaring demand. The supply is inelastic. No other investment I know of offers that sort of inelasticity.
For instance, when gold prices shoot up… new mines spring into operation and flood the world in new gold. When stock prices shoot up (think Tesla), management teams issue billions of dollars in new shares, which dilute the existing shareholders.
You can’t do that with bitcoin. There will only ever be 21 million bitcoins. More than 18 million of those have been mined already. And it’s estimated 5 million bitcoins (or more) have been irretrievably lost.
If we work off that estimate of 13 million bitcoins in existence – and split that equally among the world’s investors – it would only be 0.026 bitcoin each. That’s about $240 worth of bitcoin.
Are you beginning to see how rapid the price appreciation in bitcoin will be once the world’s stock investors are able to buy bitcoin as easily as they can Apple stock?
Bitcoin Is Going Mainstream
Let me be clear…
This isn’t just me asking you to believe in my investment thesis… This is happening right now, under our very noses…
Just last week, reports surfaced that PayPal and its Venmo subsidiary plan to roll out direct sales of crypto to its 325 million users.
One source told website CoinDesk that PayPal could offer crypto buying and selling “in the next three months, maybe sooner.”
Let me show you how huge this news is…
Since payment company Square started offering bitcoin trading in 2019, it’s generated about $516 million in revenue.
The biggest users of payment platforms like PayPal and Venmo are millennials.
And I believe they’ll see the same profit opportunity as Square did. So it’s a no-brainer they’ll offer crypto to their millennial customers.
Friends, this is an entirely new market for crypto that I didn’t account for in the past.
Nearly 35% of U.S. labor force participants are millennials, making them the largest generation in the country, according to a Pew Research Center analysis of U.S. Census Bureau data.
Millennials have grown up with digital assets their whole lives. So bitcoin makes a lot of sense to them.
According to a survey by Bitcoinist, almost half of U.S. millennials (ages 24–39) trust crypto exchanges more than stock exchanges. And studies show millennials prefer to own bitcoin over gold.
So we’re seeing an entirely new – and previously unaccounted for – market open to crypto…
Forget Volatility and Focus on the Future
The millennial tailwind is just one piece of the bitcoin narrative.
As I’ve said before, I also believe we’ll have a major brokerage firm make bitcoin available to millions of its customers.
Long story short, the macro theme is intact and getting stronger.
I suggest you stop looking at the daily price of bitcoin… and instead, focus on the big macro drivers that’ll deliver value to us.
Crypto adoption will increase exponentially over the coming years – just like the iPod eventually did in the early 2000s.
As crypto adoption grows, we’ll see breathtaking price appreciation across the entire crypto market.
Let the Game Come to You!
Editor, Palm Beach Daily
P.S. As I mentioned, we’re seeing an entirely new market open up to crypto. And as adoption grows, so will your chance at life-changing gains…
But there’s an even bigger idea I believe will be the top-performing investment idea of the decade.
In fact, I’m so convinced of this idea’s potential, I firmly believe it’ll be the single-best place to grow your money in the next 10 years.
It’s the underlying technology powering cryptos. And it’ll disrupt numerous industries – from healthcare to national security. You can get the inside scoop right here…