Cryptocurrencies Could Be Worth $200 Trillion One Day

by James Altucher, Daily Reckoning:

I’m not exaggerating when I say cryptocurrencies are the biggest innovation since the internet. We’re on the ground floor of an enormous trend that’s going to change the world.

Cryptocurrencies are currencies with no government in the middle. No bank in the middle. No organizations in the middle keeping track of all your payments, or taking advantage of your spending so they can invade your privacy, and on and on.

Cryptocurrencies solve trillions of dollars’ worth of problems, which is why they will be worth trillions of dollars one day.

Consider the potential:

There is currently $200 trillion in cash, money and precious metals used as currencies in the world. Meanwhile, there’s only $200 billion in cryptocurrencies. Cryptocurrencies are eventually replacing traditional currencies.

So that $200 billion will eventually rise to the level of currencies. And probably sooner than we can imagine.

Fortunes have been made in cryptocurrencies and many more will be made in the future. But just like the Internet boom in the 90s, there will be a lot of scams. Let me say it right now: 95% of cryptocurrencies are scams.

But with the total number of cryptocurrencies now exceeding 1,000, that means at least 50 legitimate cryptos out there right now. That’s a lot more than one or two or three.

My job is to research, study, and use my connections to avoid the scams. I’m dedicated to finding the tiny portion of cryptocurrencies, that remaining 5% that will turn that $200 billion into $200 trillion.

I hate to use big numbers like that. But those numbers are facts.

If, and only if you avoid the scams, you’ll find the cryptocurrencies that actually solve major problems of prior currencies. Also, avoiding the scams lets you closely follow closely the people who are doing the research and have the credibility in this space.

What qualifies me for this role?

Basically, I’ve been here before. I started one of the first Internet companies back in 1995. I created the first websites for AmericanExpress. com, HBO.com, TimeWarner.com, etc etc.

I was there. I did it. I rode the boom. I also rode the bust. So I’ve been here before and know what to avoid and I trust my ability to predict. The next time I was “here” was when Facebook was getting bigger.

Facebook was private at the time and hard to invest in. So I invested in every Facebook ad agency I could find. Then Microsoft offered to buy Facebook for a billion dollars. I went on CNBC and said Facebook was worth at least $100 billion. I also wrote it in The Financial Times. CNBC laughed at me. Nobody took me seriously. The day Facebook went public they had me on again.

It’s first value after it went public: $101 billion. Now it’s worth well over $400 billion.

I was a seed investor in one of those ad agencies I mentioned, Buddy Media, when it was worth just $4 million. It was later sold to salesforce.com for $900 million. I don’t say all this to brag. But when it comes to tech and investing, I trust myself.

Work isn’t work if you are doing what you love. And to me, this isn’t work.

I’m thrilled to be living during this huge shift in the evolution/ revolution of what money really is. The fact is, money evolves. Cryptocurrencies aren’t just investments that can make you rich beyond your dreams, as they’ve already been for some people. We are witnessing the evolution of money.

First there was barter. Then there was gold. Gold first solved many of the problems of barter (reducing thousands of exchange rates to just a few). Then there was paper money/bank money/fiat money. Paper money solved many of the problems of gold (e.g. as a store of wealth that you can travel with, or as a transaction mechanism for large transactions).

Now there are cryptocurrencies. And cryptocurrencies are solving major problems in fiat money (no centralized control, lack of human error, no forgery, privacy, etc etc).

I’ve written about this many times before (maybe you have seen it in my cryptocurrency master class or book or articles). One day it will all seem obvious.

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