The worst investment decision of Niall Ferguson’s life was ignoring his teenage son’s advice to buy bitcoin back in 2014.
He’s a smart man … a noted economic historian and author of The Ascent of Money. He admits he was “very wrong” about cryptocurrencies and blockchain technology.
“If I had listened to my son,” he wrote, “I would have increased the dollar value of my investment by a factor of 45 — or, if you prefer, I‘d have made a return on the investment of 4,436%.
I get it. I also first discussed bitcoin’s explosive potential on Fox News on July 1, 2014, and a lot of folks were skeptical.
At the time, I noted “Bitcoin is there for the taking … I’ve become a believer.” It had the potential to become a viable global currency and act as a store of value.
My own view on bitcoin and cryptocurrencies has evolved over the last six years … I’m more bullish than ever!
More models and analysts are also increasingly bullish …
One of the reports I wrote for my Ultimate Crypto members is called “Bitcoin $100,000: Digital Gold of the Future.” Interestingly, Niall Ferguson also sees bitcoin as an “option to digital gold.”
I absolutely believe bitcoin could reach $100,000 — a gain of more than 10X from current prices. It could happen pretty quickly, too … by the end of 2021.
Jaws still drop when I say bitcoin is on track to hit that price. Some folks probably even think I’m crazy.
But history and our research show a very high probability of a huge rally in the coming months. And another prominent model just jumped on board.
One of the main reasons has to do with the basic economic concept of supply and demand. Even though you hear about bitcoin all the time, you may not know one of its strengths is its scarcity.
That scarcity was baked into bitcoin’s founding code by its mysterious creator, Satoshi Nakamoto. It’s a big reason why I compare it to digital gold. Only 21 million bitcoins will ever be created, and 18.5 million have already been mined.
Less and less supply will come onto the market over time. In fact, it’s expected that the remaining 2.5 million coins won’t be completely mined for another 120 years. Smart investors need to sit up and take notice.
Demand for bitcoin should stay steady and even increase while the new supply shrinks. This is the perfect recipe for a “supply shock,” which we’ve seen before when prices soared in the 12 to 18 months following the first two halvenings.
After the first halvening in November 2012, bitcoin’s price rose 2,135%. The second halvening in 2016 saw bitcoin shoot up 3,122% in 18 months …
All indications are it will happen again now after the third halvening.
We see further evidence of the potential behind bitcoin’s built-in scarcity through a metric called stock-to-flow.
Made popular in the crypto industry by an analyst known as PlanB (I guess PlanA was taken?) stock-to-flow is basically the ratio of current bitcoin supply to the flow of new coins. Bitcoin’s stock-to-flow ratio is now 50, meaning it would take 50 years at the current production rate to get the current supply, or stock.
Per PlanB’s recently released chart below, bitcoin’s historic price has historically tracked its stock-to-flow ratio. It’s doing that right now. As you can see, the white line (stock-to-flow) is close to the price, represented by the dots.
If the pattern holds through the year, we would see the price meet the stock-to-flow line again at … drum roll please … $100,000! Seems to me I’ve heard that somewhere before.
As exciting as bitcoin’s 10X potential looks, a lesser-known alternative called altcoins (alternatives to bitcoin) have even bigger upside potential.
In fact, select altcoins blew bitcoin’s performance out of the water after the previous two halvenings.
After the first one, investors in Primecoin saw their investment soar 3,708% from July to November 2013.
After the second halvening, an altcoin called Verge shot up an unbelievable 1,362,400%! In just one year, that would have turned $5,000 into a mind-blowing $68 million.
A similar situation is setting up today, but more investors are now aware and starting to take notice. Altcoins like the ones I’ve handpicked for my Ultimate Crypto service are outperforming bitcoin and easily beating the stock market.
This is not a rising tide that lifts all boats, so choosing the best positioned altcoins is critical. To help us identify the strongest altcoins, my research team and I created the “MAG System.” Our comprehensive system researches and analyzes 10 critical attributes of every altcoin (similar to how we’d analyze the fundamentals of a stock), scores them on each, and then produces an overall ranking.
I can tell you from looking at the system day in and day out that there is no better time to be invested in altcoins. It’s still early enough to take advantage of the halvening and capture the big gains, but that window won’t stay open for long.
Matthew McCall left Wall Street to actually help investors — by getting them into the world’s biggest, most revolutionary trends BEFORE anyone else. The power of being “first” gave Matt’s readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities.