SPECIAL REPORT

TRADIN G RESEARC H

HOW CRYPTO
BECOMES
THE FIRST
$100 TRILLION
MARKET

TRADING
 SPECIAL REPORT HOW CRYPTO BECOMES THE FIRST $100 TRILLION MARKET
How Crypto Becomes The First
$100 Trillion Market
Let’s do the math.
Right now, the market cap of the entire crypto
space is about $200 billion. In fact, as I men-
tioned before, that’s about where the Nasdaq
was in 1974.
The Nasdaq, and the entire tech sector, today?
Many, many times that.
And the crypto market is growing about 2x faster
than tech market. That crypto market cap should
be multiples of tech stocks because it’s global
and produces more value.
That’s why I say that crypto getting to $100 trillion
isn’t a question of “if,” it’s question of “when.” It’s
#1: New and Emerging Markets
Emerging markets are always interesting to
watch.
For example, many parts of the world never had
access to wired telephones. The infrastructure
was too expensive or complex to deploy. So
they went straight to mobile phones once those
became available.
They skipped an entire technology cycle and
caught up with the rest of the world anyway.
The same thing is happening in finance right
now. Most people in the world don’t have access
to banks for various reasons, so now they’re
skipping over the banking cycle and going right
to cryptocurrencies.
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the next $100 trillion market, that’s all there is to it.
How is it going to get there?
The market has already grown pretty quickly,
from the creation of Bitcoin in 2008 to where we
are today, with hundreds of different crypto
tokens and a whole world of different exchanges
and investment platforms. The fact that everyday
people, and not just tech enthusiasts, even know
what cryptocurrencies are and consider them a
viable investment asset is a major shift.
But we’re not done yet. Organic growth and
mass adoption got us this far. The push to $100
trillion and beyond is going to come down to six
driving factors.
They have cell phones, they have internet access,
but they don’t have access to traditional banking
services.
So they’re going straight to crypto.
The market cap of retail finance in the world’s
emerging markets is currently worth more than
$12 trillion, and that’s all piling directly into cryp-
tocurrencies at a rapid clip.
And it’s not just a lack of banking services that’s
driving this.
The problem with fiat money is that it loses value
every day. Inflation eats away at our purchasing
power over time, usually at a rate of a few per-
centage points a year.
 SPECIAL REPORT HOW CRYPTO BECOMES THE FIRST $100 TRILLION MARKET

In the developed world that’s bad enough, but in
some emerging markets the problem is truly dire.
Take Venezuela for example. It’s government and
economy are spiraling downhill and they’re seeing
more than 500% inflation right now.
Every day, the country’s money is worth less and
less. The need exponentially more cash to go
and buy goods and the store.
It’s happening in Zimbabwe too, where inflation
is currently running at a staggering 1,200%.
Crypto offers an escape from this inflation and
an alternative for their failing fiat currencies.

#2: Institutional Investors

The good news is that the SEC is already work-

The institutional money has so far been sitting
on the sidelines, making 35% a year in traditional
assets while the rest of us are making thousands
of percentage points in cryptocurrencies.
It’s not like they don’t want to get into crypto.
They do. They’ve just been limited by law to this
point.
ing on changing those laws, allowing for the
securitization of cryptocurrencies, and we’re go-
ing to see crypto custodian accounts popping
up as soon as that happens. That’s going to
finally open the door to participa-
tion by the major institutional
investors.

Institutions are not allowed to own assets direct- And they aren’t going to
ly. They can’t own gold. They can’t own shares of hold back.
stock. They have to use custodian accounts for
Once they have free
everything, and there simply aren’t and custodi-
reign, the rush into
an accounts for cryptocurrencies yet.
crypto by institution is
They’d love to get in, though. going to be hard and
fast, pouring trillions
Bitcoin and other cryptocurrencies are uncor-
into the market almost
related assets, meaning they don’t behave in
overnight.
lockstep with the traditional stock market. Wall
Street loves that. Uncorrelated assets are where There is roughly $70 trillion alone in
they make the big money. They’re always looking just the pension fund and institutional markets,
for uncorrelated assets to invest in. and even if all of the doesn’t move into crypto,
we could easily see $10 trillion to $20 trillion in
But until the Securities and Exchange Commis-
new market cap just as a result of this segment.
sion (SEC) changes its rules around cryptocur-
rencies, they’re out of luck.

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 SPECIAL REPORT HOW CRYPTO BECOMES THE FIRST $100 TRILLION MARKET

#3: New Asset Classes

Alongside these institutional investors, the SEC
is expected to open the doors to new cryp-
to-backed investment products on the retail side
as well. These are for individual investors like you
and me, and the group as a whole is sitting on
trillions more of investable assets that will
contribute to the crypto market’s push toward
$100 trillion.
No more will cryptocurrency novices have to
study all of the different coins, choose an ex-
change, learn about hardware and software
wallets, etc. Right now it can be frustrating to buy
cryptoassets, there’s no question about it. But
with ETFs and other securitized options it will be
as easy as allocating a portion of you portfolio to
crypto and going on with the rest of your life.

It’s going to be a mass scale adoption, driven by This will bring the general public into the market
securitization. for the first time and, considering the fact that
ETFs currently account for 20% of stock market
Exchange traded funds (ETFs) have transformed
wealth, could add at least $10 trillion to the mar-
the way that many people invest. Now, instead of
ket cap of the crypto market in very short order.
having to buy physical gold and store it in a safe,
you can simply buy shares of a gold ETF via your There are at least six crypto-backed ETFs under
investment account and hold onto those “paper review right now, and as soon as the SEC starts
gold” shares as long as you want to. approving them a massive amount of investment
capital if going to find its way into this asset
There are disadvantages to this, of course, but the
class.
fact is ETFs and similar products have made
investing much easier and brought trillions of
new dollars into the market as a result. For
millions of people, these funds are simply how
they invest.

This is an example of securitization in action, and

it’s coming to crypto very soon.

The market for ETFs is massive, and once the

SEC approves crypto-backed ETFs it’s going to
be like the “easy button” was pressed for crypto
investment.

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 SPECIAL REPORT HOW CRYPTO BECOMES THE FIRST $100 TRILLION MARKET
#4: Digital Gold
The world has been looking for an alternative to
gold as a store of value for millennia.
Right now, there is about $7 trillion worth of gold
in the world. Problem is, actual gold usage doesn’t
even come close to supporting that $7 trillion. It’s
used in jewelry, electronics, manufacturing, and
more, but that ‘s only worth a few trillion.
The rest of gold’s “value” is based on its reputa-
tion among investors as a safe haven and store
of value.
And crypto is just like gold in this regard. It isn’t
impacted by fiat inflation, it can serve as a store
of value, and it can even be a safe haven in times
of economic uncertainty.
It’s digital gold.
Yes, gold has been around for a long, long time
and is widely accepted for it what it is. You can
go anywhere in the world and redeem gold for
value, and you probably always will be able to.
But cryptocurrencies are going to become the
new standard for gold over time, especially as a
hedge against inflation. Especially in developing
#5: Offshore Alternatives
As of 2018, there is some $30 trillion of wealth
stored in offshore banks accounts.
The reason? Wealthy individuals don’t want their
home governments to know about their holdings
in order to avoid potential seizure and certain tax-
ation. So they store them in foreign banks, where
their governments cannot access them.
As a result, trillions in value of the world’s assets
are being stored away in accounts, remaining
on the sidelines.
5
markets (which are increasingly adopting cryp-
to, remember?) where fiat currencies have long
been uncertain and inflation a way of life.
If you live in Venezuela and are facing 1,200%
inflation, moving your money to digital gold like
crypto doesn’t seem like such a stretch. In fact,
it’s a great hedge against that inflation.
And don’t kid yourself: the vast majority of the
world is facing this situation. Not everyone has
the luxury of a solid and reliable local currency
like the Dollar or the Euro. In many parts of the
world, individuals can’t even access securitized
gold products such as ETFs and mutual funds.
Cryptocurrency is going to be their gold.
This is going to bring trillions into the crypto
markets over time, growing the market expo-
nentially while providing much of the world with
a much needed service and benefit as a safe,
inflation protected store of value.
Considering the fact that right now there is
about $93 trillion worth of value stored in fiat
currencies around the world, the impact could
be enormous.
Cryptocurrencies like Bitcoin and Ethereum
offer a novel solution to this problem.
Most importantly, as so-called bearer assets,
cryptocurrencies cannot be seized by the gov-
ernment. They are safe. (Taxation is a different
matter, but the details around how different
countries treat crypto holdings for tax purposes
are still being worked out. For now, though, it’s a
safe bet that capital gains taxes will apply when-
ever we cash out our crypto holdings.)
 SPECIAL REPORT HOW CRYPTO BECOMES THE FIRST $100 TRILLION MARKET

Remember, cryptocurrencies are:
X Transparent
X Permissionless
X Self-sovereign
X Portable
X And fungible, meaning all units are inter-
changeable
And that’s just the start of it.
Privacy coins such as Monero, Zcash, Grin, Tari
and Mobilecoin could be very useful to the
world’s elite, offering extra layers of protection
for their assets that even offshore banks can’t
provide. Privacy coins like these were specifi-
cally designed to protect the identities of their
holders, both in terms of who they are both
offline and online and how much they have in
their holdings. This while still offering the same
benefits of the blockchain digital ledger.
As high-net-worth investors come to un-
derstand these advantages, it’s safe to bet
that they will move at least a portion of their
offshore assets over to cryptocurrencies,
including both privacy coins as well as more
traditional coins such as Bitcoin.
How much? No one knows for sure, in part be-
cause no one really knows how much is in the
shadow offshore banking system. But over the
long term, it’s expected to number into the
trillions as more and more of the world’s elite
come on board.

#6: Tokenizing the World

There’s one thing that all of the world’s assets today – Eventually, all $700 trillion of the world’s assets will
real estate, stocks, bonds, fiat currencies, etc – cannot be tokenized on blockchains, securing all the assets
do, and that is guarantee ownership. The systems in the world in a secure, traceable, permissionless
underlying all of these different types of assets are way. Some of these chains will be for fiat
old, slow and dependent on outdated technology. currencies, and some of them will
allow central banks to create
It’s all about paper and pen, proprietary
money. But make no mis-
databas-es, and third parties verifying
take: eventually all
everything.
of the world’s
To buy a house you need to go through the pro- wealth will be
cess of gathering the money to pay for it, trans- tokenized.
fer it to a third party (whether it’s a mortgage
When that
company, an escrow company, or some other
happens,
intermediary), wait a few weeks, sign and file a
the value of
stack of paperwork, and then wait for the title of
blockchain
the property to be delivered to you.
technology and
The blockchain, which is the digital backbone the related cryptocurre-
underlying the entire cryptocurrency system, will nies will only increase.
solve all of this by giving asset owners each a
private key to control all of their holdings, with
all transactions available to the public.

And it’s coming.

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 SPECIAL REPORT HOW CRYPTO BECOMES THE FIRST $100 TRILLION MARKET
Profiting From the Crypto Cycle
In all tech cycles, it’s possible to spot the same
patterns of innovation and adoption, and this
show us a clear path to investing in them.
As a cycle goes through its four phases of devel-
opment, it’s important to find the “trends within
the trends.” That is, finding the narratives and
innovations that are driving certain areas of the
market faster and higher than others.
Let’s look at at the Internet tech cycle that we
deconstructed in the “How Understanding Tech
Cycles Can Make You Rich.” You will notice that
what investors were focused on changed over
the course of the 15-year adoption cycle.
What do I mean? Here’s a brief overview of
where most investment was focused and what
companies did well as the Internet grew up:
1990 - 1995
X Tech: Routers, switches, hardware
X Companies: Intel, Cisco, etc
1995 - 1998
X Tech: Browsers, ISPs
X Companies: Netscape, AOL, etc
1998 - 2003
X Tech: Search engines, platforms
X Companies: Google, Amazon, etc
2003 - 2008
X Tech: eCommerce, SAAS
X Companies: Zappos, Amazon, Salesforce, etc
The coming $100 trillion crypto technology cycle
will play out the same way.
Where the money was made in crypto from
7
2010-2015 was very different than it was from
2016-2018. And it will be different again going
forward.
Because, to profit off this cycle you have to con-
tinually be noticing small changes in the market
and anticipating these moves so you can get in
early.
Of course, this takes years of experience to do
well, as well as keeping up on fundamentals like
policy, regulations, innovation, etc. But my hope
is that this will at least open your mind so you
can start to think about the bigger picture.
With that in mind, here are the crypto sectors
that I expect will deliver the best returns in 2019
as well as some coins from each sector.
NOTE: I am not recommending you buy any of
these coins, but rather just giving you framework
to help you make decisions on your own. All of
these coins could be good, but knowing when to
buy and what price to pay can be just as import-
ant as know what to buy.
Best Performing Sectors for 2019
Currency Coins
These are cryptocurrencies that have been
designed to function like money and to take the
place of traditional fiat payment methods. They
have their own blockchains and each coin is
meant to be used as an alternative to currency.
I don’t expect this sector as a whole to outper-
form the other sectors except for Bitcoin, which
has become the “reserve currency” for the cryp-
tocurrency world. Although designed as a peer-
to-peer currency, Bitcoin is now growing into a
true store of value and platform for second- and
third-layer chains. It is also the asset that will see
the greatest adoption as institutions move in fast
and hard in 2019.
 SPECIAL REPORT HOW CRYPTO BECOMES THE FIRST $100 TRILLION MARKET

Here are the currency coins I’m watching: their crypto holdings, well, private. So we expect
growth in this area, and below are some of the
XX Bitcoin (BTC)
coins that fit this category:
XX Litecoin (LTC)
XX Dash (DASH) XX Zcash (ZEC)
XX Ripple (XRP) XX Verge (XVG)
XX Dogecoin (DOGE) XX Monero (XMR)
XX Bytecoin (BCN)
Protocols / Platforms XX Bitcoin Private (BTCP)
XX Navcoin (NAV)
Protocols are sets of rules that guide interac-
tions between communicating entities. Like
Dex Coins
email, where all of the different email provid-
ers – like Gmail, Hotmail, Outlook, etc – use the The entire blockchain revolution is about de-
same “SMTP” protocol, they are standards that centralization, removing the reliance on central-
others can use to build upon. Protocol coins ized and trusted third parties and instead using
allow investors to effectively own the underlying technology to conduct business and facilitate
technology that powers the interoperable crypto transactions directly.
network. They offer a standardized platform and
A third party, centralized administrator leads to
way for other decentralized applications (dApps)
what we call “counterparty risk,” which is the risk
to run.
that that trusted party could steal, seize, manipu-
Some protocol and platforms are: late, or otherwise interfere with your investment.

XX Ethereum (ETH) Today, the majority of exchanges from one

XX Cardano (ADA) crypto coin to another requires the use of a third
XX EOS (EOS) party central administrator -- “the exchange”
XX High Performance Blockchain (HPB) -- which is exactly what crypto was supposed
XX Credits (CS) to get us away from. A Dex is a decentralized
exchange, and its one of the most important and
Privacy Coins growing sectors of the crypto market.

Bitcoin and other crypto assets are on public For cryptocurrency to be used as it was originally
blockchains, allowing anyone to see how many intended, we HAVE to have decentralized ex-
coins you have, and where you choose to send changes. As such, we expect this sector to grow
them. rapidly into 2019 and beyond. Here are just a
few to look at:
Of course, this isn’t optimal for privacy, so a num-
ber of privacy-focused coins have been created XX Bitshares (BTS)
to protect certain functions like balances and XX Airswap (AST)
transaction histories as the market increases XX Waves (WAVES)
adoption. XX Stellar DEX (XLM)
XX Binance Dex (BNB)
As regulations, clampdowns and even seizures
continue to happen across the globe, more and
more people will want privacy coins to keep

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 SPECIAL REPORT HOW CRYPTO BECOMES THE FIRST $100 TRILLION MARKET

Interoperability Securities

With thousands of separate blockchains out
there, all siloed on their own and written in their
own programming languages, achieving adop-
tion and scale will be difficult.
We believe the way this market will grow
involves many blockchains working together in
perfect synergy to complete a single transaction.
However, imagine how daunting it would be as
a programmer to figure out a way to custom-
ize your code to work with thousands of other
blockchains. It would be horrible. It would be
so much better if you could just connect to one
chain -- an “interoperability” chain -- that makes it
so that each chain only has to connect one time
and the interoperability layer handles the rest.
This is already happening and it will be a mas-
sive step in bringing the space together, similar
to how the standardized internet browser helped
websites become popular. Some interoperability
chains include:
X ARK (ARK)
X BlockNet (BLOCK)
X ICON (ICX)
X Wanchain (WAN)
X AION (AION)
One of the fastest growing sectors for 2019 and
beyond will be security tokens.
We did not list any specific tokens here because,
as of this time, there are no true security tokens
on the market or exchanges able to trade them.
But, even so, we expect this sector to grow very
rapidly in 2019 and we have our eyes on it.
I hope this guide opens your eyes to see that not
all crypto assets are the same. They are doing
different things and are in different categories.
That’s why it’s important to learn as much as you
can so you can be sure to be in the most profit-
able sectors as the crypto tech cycle progresses
over the next several years.
Just keep your eye on the market and remember
that what you buy is only part of it. When you
buy is just as important.
Above are the sectors I am focusing in for 2019
and I recommend for you as well. But, as always,
be ready to pivot and move when the markets
change.
It’s your money. You worked hard for it and you
have to make sure you multiply it and also pro-
tect it. So it’s worth your time and effort to learn,
study, and understand this as you enter the cryp-
to investing world.

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