November 22, 2021
Stansberry Research’s crypto guru Eric Wade held a special presentation last week with some big news for the investing industry. If you missed Eric’s update, you can watch the replay for free right here.
In short, Eric is sky-high bullish on the future of cryptos…
He thinks bitcoin (now trading at around $58,000) will hit $1 million by the end of the decade, and he also thinks that it’s just a matter of time before Ethereum (now at roughly $4,100) moves toward $10,000.
But, as Eric explained in last week’s event, the projected growth of these two “blue chip” cryptos will pale in comparison to an opportunity with far greater upside.
And Eric has built a new model portfolio with six coins – each with the potential, he says, to jump at least 1,000%.
In the presentation, Eric also gave away the name of a small coin that he believes could move up 10-fold. The last time Eric revealed a pick like this was back in 2019, when he recommended Enigma (ENG) ‒ since rebranded as Secret (SCRT) ‒ for just $0.56. It has jumped as high as $10.59 ‒ an incredible gain of about 3,000%…
That would’ve been enough to turn $500 into more than $15,000 in a little more than two years. Incredible… Again, you can access Eric’s special event for free right here.
Today, I’m going to delve into a specific sector of cryptos… the fascinating and exploding world of NFTs – “non-fungible tokens,” or crypto collectibles.
How NFTs Are Going to Evolve and Change the World
Someday soon – even if you’re not reading this from your tri-deck yacht in the Caribbean, and you don’t win the lottery or rob a bank tomorrow – you may be able to buy the painting below.
This is “Woman in a Red-Orange Beret”, a 1938 work by Pablo Picasso that was recently sold in a Sotheby’s auction for $40.5 million.
Or rather… you might be able to buy part of this masterpiece. As in, say, 1/5,000th of it… with the actual painting kept somewhere safe, with you as the secure blockchain-certified owner of your little slice.
Whether as a speculation or an investment or bragging right – your Twitter profile picture, iPhone home screen, or forehead tattoo – there would be a market for your asset, and transferability would be as easy as buying bitcoin.
Or if Picasso isn’t your thing, maybe you could buy a piece of a 1962 Ferrari 250 GTO (worth $48 million)… or a little bit of a trophy penthouse on 432 Park Ave. in New York City (listed in July for $169 million).
This kind of fractionalized ownership is similar in some ways to buying shares in a public company. When you buy shares of McDonald’s (MCD), you own a little piece of the company. If the share price rises – or if the valuation of your slice of “Woman in a Red-Orange Beret” rises because someone buys a similar painting for a higher price, and/or because demand for little pieces of it rises – your little slice is worth more.
What’s different, though, is that the technology underpinning the expensive painting/fancy sports car/nice apartment fractionalized ownership notion is applicable to a vast range of use cases. The ability to “tokenize” real-world assets – easily and securely – will change how we talk about assets, how we invest, how we diversify, and how we interact with money.
These Are NFTs
For now, though, civilization-tilting technology is how you buy a non-fungible token (“NFT”)… like, say, “Desperate ApeWife #4269” (latest price being 0.23 Ethereum ‒ around $960), or a plot of virtual real estate in Decentraland (Parcel -55,49 has an offer for the equivalent of about $5,000).
NFTs are crypto collectibles of pixelated artwork, music clips, videos, or virtual assets in virtual cities, and they are worth something between nothing (using traditional measure of art or value) and a lot…
In the third quarter of 2021, sales of NFTs clocked in at $10.7 billion, which was more than four times the total sales volume in the first half of 2021. Earlier this year, auction house Christie’s sold an NFT by digital artist Beeple for $69.3 million.
It was by far the highest price ever paid for artwork that exists only digitally. Christie’s reported that it was the third-highest auction price in history for a piece of artwork created by a living artist.
What justifies the price of an “original” piece of digital artwork rests in its proven and secure originality… its “nonfungibility.”
Something that’s “fungible” – the F in NFT – is interchangeable and not unique. For example, a $100 bill that I hold in my hand is no different from one that you might hold in your hand. They’re equivalent assets, and worth the same in the market.
But if I snatched a $100 bill from your fingers, you’d have no way of proving that it’s yours… Ownership is a function of whose pocket it’s in.
With bitcoin, though, ownership is registered on the blockchain ‒ a big digital ledger that’s operated by a network rather than any centralized entity. Your unique address – that only you know – determines your ownership. No one can take that, or your bitcoin, away from you.
Ownership of NFTs is similarly recorded on the blockchain. And that means that each NFT – each digital object, whether it’s a few bars of music or a virtual taxi in a virtual universe or something like “Women and Weapons #3478“ – is unique in a way that’s impossible to fake or replicate… And its ownership is indisputable.
How Technology Finds Its Way
Using NFT technology to buy and sell silly pictures is kind of like using a pimped-out 2021 Maserati MC20 with platinum wheel trim and crocodile leather seats to drive through a school zone to pick up some aspirin at the local CVS… It’s total overkill, and not deriving value from an extraordinary asset.
That’s because it can take a while for any technology to find its ultimate, highest-use function.
When I spoke with him recently, Eric of Crypto Capital made an apt comparison…
Digital cameras went from clunky and low-resolution to small and powerful. They can be embedded virtually everywhere – and their utility has expanded far beyond taking a selfie in front of the Eiffel Tower. We “sign in” to our phones with facial recognition… We look at a restaurant menu with our camera by reading a QR code… We even present evidence in court based on passive “dash cams” for insurance claims.
(I wrote about Eric – his crypto context, his colorful background, and his “imperfect” marksmanship skills – in July 2020.)
Consider that the Global Positioning System (“GPS”) started life as a military precision instrument – before it became a byword for finding your way anywhere.
Also, let’s not forget about the Internet, which in its toddler days was a way for government researchers to share information. Touted as the “information superhighway,” over time it has become an integral part of how we communicate, do business, learn, and consume content.
Click here to read the conclusion to Kim’s NFT story, in which he shares how NFT technology is going to revolutionize the globe, and the best way to invest in this up-and-coming opportunity.
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Executive Editor, American Consequences
With Editorial Staff
November 22, 2021