“It’s early days in crypto. When I arrived in crypto in 2013, I thought I be might too late…I realise now that I’m probably among the top 1-2% to actually buy this stuff.
But this market is only getting started. Wall Street is coming. The City of London is coming.
I believe we are at a pivotal point with crypto where we have another chance to build once in a lifetime wealth in a short space of time. Crypto is not just another technology. It will infect any transferable form of value like shares, commodities, currencies and create whole new types of assets in our lifetime.
If you are starting now, you are arriving at a time when this market is going to scale up in a big way…”
That was the message from a seasoned crypto trader named Michael Mac that I spoke to this week.
I went to visit to Michael at his home in Stoke Newington to pick his brain on what’s happening with crypto.
It’s been an exciting few weeks in crypto.
As a member of Michael’s Crypto Traders’ Academy, I’ve been following his trades closely.
I’ve had a few dips – building up a position in a coin I’ve followed for the last few years.
And some of the old excitement about cryptocurrencies is starting to rise to the surface.
Michael was very bullish…
“Look there are a lot of variables…but all the signs are that the bull is back and the bottom is in.
I’m confident we will at least challenge new highs for Bitcoin above $20,000 and we’ll likely see $100k in the coming years.”
“If we see another year as 2017, I won’t have to work again”
I have a lot of time Michael. He called the top of the market in 2017 very nicely and I’ve followed him into a few trades into the last few years that have done well.
You’d have to enjoy the quality of his research as well – he sometimes rifles through a long list of indicators, signals and patterns during his regular trading webinars.
Michael is an engineer by training.
He’s worked on huge energy projects – monitoring winds farm projects for Vestas across Europe and offshore.
Ten minutes into arriving at house we get into an involved conversation about the thousands of technical components in a functioning wind turbine and all the things that can go wrong.
He has an obvious delight for the technical details and a knack for breaking them down into something digestible.
So why did he give it up?
“Well crypto has changed my life. I’m literally a millionare off the back of this, having started with a very modest investment.
These days I’m a full time trader.
For the first year, I thought I was a genius because the number went up. For a while I even thought that Bitcoin would replace the Dollar.
I lost a bit in the crash…
And so I decided to really dig into this market so I wouldn’t be caught out again.
I had always traded but for the next few months, I spent most weekends and free time obsessively learning everything I could about trading/investing cryptocurrencies.
And I’ve invested through four bubbles since then.
To be honest, if we have another year like 2017, I won’t have to work again.”
Although something tells me Michael is unlikely to retire after making his money in crypto.
He’d be too restless.
Michael has lived and worked in eight countries around world: from Denmark to Dubai and India.
The house is covered with pictures of places he’s visited with his fiancé.
There is a picture of the two of them above his desk. They are doing a little jig in the middle of a desert at night, dressed in top hats and tails.
It’s only a few weeks till they get married. He seems relaxed about the preparations.
So will we see another year like 2017?
The question prompts a twenty-minute dive into his charts.
“We are trading bubbles here. The most recognisable pattern is that coins can rise massive amounts that crash 75-80%.
Take a look at this summary table.
As you can see you can wait ages for a big spike. The market goes along for months with…people get exhausted and they drop out.
Then you get these sudden moments where Bitcoin and Ethereum can rocket over a few months, with the rest of the market following suit.
The average of the 44 previous crypto cycles I reviewed was 6,000% from the very end of the bear phase to the peak of the bull phase which is massive and these patterns have repeated many times!
We saw this with Ethereum in both end 2017 (bull market) and end
2018 (bear market).
There are plenty of reasons for this but the main reasons are:
- The global nature of crypto
- A substantial portion of unskilled retail investors
- The intense speculative nature of crypto at this stage of the technology life cycle as there are a lack of current legitimate use cases at scale which means the potential of a coin is huge but could also be zero too.
My personal low-end target is that I expect the peak of the next major bull phase to at least reach previous highs and likely surpass these highs substantially.”
That’s hard to argue with.
Crypto is the world’s fastest growing asset class but is still a drop in the ocean of the world’s wealth.
To put the overall market size of crypto in context, the total market size of all of crypto today is approx. $130 billion OR $0.13 trillion.
Just to put that in context…
The global size of the Gold market is $7.7 trillion.
Stock Market = $73 trillion
Money market, bank, checking Accounts = $127 trillion
In other words, all of crypto is currently worth approx. 1 thousandth of 1% or 0.001% of global wealth.
My own experience with cryptocurrencies
Still my own experience is that it’s sometimes a frustrating market to invest in.
There are long periods where nothing happens.
I sat on the sidelines over the last year or so, waiting for this brutal bear market to play out.
I have about 5% of my funds in crypto at the moment, which is not insignificant.
And I’ll probably build up to 10% of 15% over the next year, if the market plays out as Michael is saying.
I’m convinced that cryptocurrencies will be here in some shape or other in ten years time.
The evidence of the four bubbles so far is that there is a raw demand for something like Bitcoin.
Every time there has been trouble in economically fragile countries such as Venezuela, Argentina or Japan…there has been a wave of money moving into cryptocurrencies.
That’s the most impressive thing as far as I can see.
Leaving aside the elegance of the design of Bitcoin for a moment…
The most impressive thing about this asset is that it in the space of three or four years, it found users in almost every country in the world.
Yes…some of those early adopters were criminals.
Many were evading tax.
But since then, millions of people got access to Bitcoin and started hoarding it and educating themselves about this financial asset, despite not being financial or investment professionals themselves.
There is raw demand for a global digital currency.
That suggests to me that there is an enormous opportunity for this stuff to scale.
“A Machine for Decentralised Finance”
“Actually, I think of this as an entirely new financial system,” says Michael.
“A platform like Ethereum, for example, is a machine for decentralised finance.
Anyone with an idea for fintech solution can set up a website, and develop an application on Ethereum for everyone to use.
The most interesting developments are stablecoins – which solve the problem of volatility by pegging cryptocurrencies to traditional currencies such as the Dollar.
That gives them the benefits of stable currency, matched with the global access and technical benefits you get with blockchain…cheaper foreign exchange, low fees, digital wallets on your phone instead of a bank account, privacy.
We are also seeing tokenisation of assets and equities. So if you are in Africa or Asia, you’ll seen be able to buy shares in blue chips stocks such as Apple or Google.
This is the start of comprehensive financial services for huge populations who have never had access to them.
A whole generation will grow up using these platforms to invest, save and build for their family’s futures.”
How should you invest?
Well Michael has been preparing members of the Crypto Traders’ Academy for a major new cycle in crypto…
On the basis of his advice, I’ve resolved to build a position over the next few months.
If you are interested in finding out more…it’s well worth taking a free trial of the Crypto Academy.
Especially since the market is moving so quickly as Big Money comes in.
I’ve just done the revamped Kickstart Course for the Academy and invested in two coins that I hadn’t bought before.
I’ll sit on those for a year or two. Michael assures me that the fundamentals on these projects are very sound (in fact he owns them himself).
And there is the potential for massive gains – up to 6,000% if we see a repeat of 2017.
I’m looking forward to following his trades as he publishes them over the weeks and months ahead.
In fact there’s going to be a relaunch of the Crypto Traders’ Academy in a few weeks and Michael has agreed to pass on details to Monkey Darts subscribers before then.
I’ll send you more information on how to sign up and what it costs in the next few days.