Many times in crypto, investors can’t see the forest for the trees.
Take the crypto markets today…
Too many people are focused on bitcoin’s price action… whether we’re in a bear market… and what actions regulators might take.
Where the crypto market goes in the next few weeks and months is anyone’s guess… But long-term, the industry is only going to grow.
Two words: Mass adoption.
You see, despite the negative headlines… investment in the crypto industry continues to grow at a record pace.
According to PitchBook, venture capital firms have poured $17 billion into crypto companies in 2021.
That’s more than double the record $7 billion that went into the industry in 2018… And we’re only halfway through the year.
So if you’re worried that crypto’s brightest days are behind it, today I’ll show you why nothing could be further from the truth…
The Big Picture Is Brighter Than Ever
While the mainstream media is worrying about China’s crackdown on bitcoin… or the energy intensity of bitcoin mining… we’re looking at the big picture…
And it’s brighter than ever.
Case in point: On June 24, a16z announced it raised $2.2 billion for its Crypto Fund III, the most money any crypto fund has ever raised.
Founded in 2009, a16z is a U.S. venture capital firm that also goes by the name Andreessen Horowitz – after its namesakes Marc Andreessen and Ben Horowitz.
Their track record is so stellar… they’re considered super angel investors.
Their investments include a who’s-who of major tech firms… including Skype, Twitter, Facebook, Stripe, Groupon, Coinbase, and Roblox.
According to the firm:
The fund allows [a16z] to find the next generation of visionary crypto founders and invest in the most exciting areas of crypto. We invest in all stages, from early seed-stage projects to fully developed later-stage networks.
And a16z isn’t alone…
Companies like Microstrategy, Tesla, and Square, have invested a combined $4.4 billion into bitcoin since August of 2020.
Continued investments like this are a great sign of the health of the crypto industry. And they show institutional money is still coming into the space…
But it’s not the only evidence of widespread adoption.
Global Adoption Is Increasing
We see crypto adoption on a global scale, too.
On July 1, Germany enacted a new law called the Funds Location Act.
The law allows “spezialfonds,” a favorite investment vehicle for German institutions, to invest in crypto assets for the first time.
Further, it enables fund managers to allocate up to 20% of a spezialfond to crypto assets.
Analysts estimate that as much as $415 billion could flow into crypto assets due to the law. That’s significant for the $1.3 trillion crypto industry.
More importantly, it’s a continuation of a trend we’ve been writing about since 2017… And it’s expanding the ways investors can access crypto.
For example, in May, we wrote about how crypto custody firm NYDIG is partnering with Fidelity National Information Services to enable U.S. banks to offer bitcoin.
And in June, we wrote about how Interactive Brokers will offer cryptocurrency trading on its platform in the coming months.
Mainstream finance bringing crypto to its customers will flood billions of dollars into the space as more investors get involved…
And one particular kind of crypto investment will yield even greater returns.
The Best for Last
A recent JPMorgan report concluded that the Ethereum 2.0 upgrade could spur the adoption of “staking”… and cause staking rewards to balloon to $20 billion in the near term and $40 billion by 2025.
Staking is the action of locking your crypto assets (i.e., your “stake”) to help secure the network. And in exchange, you earn rewards.
At PBRG, we call staking rewards “Tech Royalties.”
Tech Royalties are relatively easy to understand. If you know how a traditional royalty works, then you’ll understand how Tech Royalties work.
Just like musicians receive a royalty payment every time their songs are played, Tech Royalties pay investors as the underlying blockchain project or crypto grows and expands.
You stake your crypto assets to their respective protocol. That helps secure the network by guaranteeing that your staked crypto can validate transactions on the underlying blockchain. In return, you receive more crypto as a reward.
They’re a way for blockchain projects to drive the adoption of their technology by allowing investors to take part and cash in on the project’s success…
In fact, while interest rates reach record lows and many companies cut their dividends, Tech Royalties in our Palm Beach Crypto Income service continue to average a yield of about 10%.
That’s 555% higher than the current yield on the S&P 500.
The JPMorgan report noted:
Not only does staking lower the opportunity cost of holding cryptocurrencies versus other asset classes, but in many cases, cryptocurrencies pay a significant nominal and real yield.
We believe this will be the next big opportunity for crypto. Not only do they generate double-digit income streams… they can also create quadruple-digit returns.
Stop Worrying and Enjoy the Ride
Look, we understand. Watching bitcoin drop 50% or more from its all-time high of $64,000 isn’t fun to sit through.
But as Daily editor Teeka Tiwari says, “volatility is the price we pay for the chance at life-changing gains.”
We’ve witnessed multiple 50% drawbacks in bitcoin – and the broader crypto market – only to see them surge to new all-time highs. So view this current pullback as a springboard to the next move higher.
As I pointed out above, institutional adoption continues at record levels across the world. And that’s why Teeka predicts bitcoin will eventually hit $500,000… and Ethereum $10,000 in the coming years.
So ignore the negative headlines and focus on the big picture…
The smartest money in the world is investing in the crypto ecosystem… Major developed nations like Germany are passing laws to make it easier for investors to participate in this space… And new crypto products are coming online and creating greater income-producing opportunities than traditional finance.
Eventually, the market will catch on again. And crypto will make its next move higher. So sit back and enjoy the ride.
Analyst, Palm Beach Daily
P.S. The billions of dollars flooding into crypto are also driving a $30 trillion blockchain revolution…
One that Teeka believes will be like buying Microsoft in the ‘80s… Amazon in the ‘90s… and bitcoin in 2010.