Big Spenders Mean Big Profits
Amanda Heckman|August 20, 2022
Bitcoin investors got spooked by a ghost this week… the ghost of rising interest rates.
After weeks of optimistic chatter about how the steep rate hikes were over… higher asset prices are again adding to inflationary pressures (remember inflation?). Investors are now weighing the odds of a 75-basis-point hike next month.
That sent Bitcoin down at the end of the week.
While the crypto naysayers will point to the drop in the market’s poster child as proof that a recovery isn’t in the cards… we’re more interested in what’s happening behind the headlines.
That’s where the real action is taking place. It’s telling us what’s really going on in the crypto market.
And it’s showing us something crypto investors should be excited about.
It’s All About the Blockchain
Despite the “crypto winter” – or because of it – big banks and tech companies have doubled down on blockchain.
From September 2021 to June 2022, 40 major companies invested about $6 billion in blockchain startups.
The biggest spender was Alphabet, with $1.5 billion in blockchain investments. Other billion-dollar spenders included BlackRock, which invested $1.2 billion, and Morgan Stanley, which invested $1.1 billion.
Samsung dropped $979 million into its 13 investments. Goldman Sachs, BNY Mellon and PayPal threw in nearly $700 million each.
But here’s everything you need to know about the future of the crypto market…
In all, 61 banks have now invested at least once in the crypto and blockchain space.
They are investing in a variety of areas… from blockchain development platforms and marketplaces to market intelligence services and decentralized applications.
A major portion of these investments are going toward custodial solutions, asset management and trading. (After all, many banks have reported that their customers want to be able to invest in crypto.)
But these moves are about more than just offering ways to invest in crypto…
These investments also show the banking sector’s commitment to developing decentralized finance (DeFi) platforms… that is, banking on the blockchain.
To put it as simply as possible, DeFi banking is cheaper, faster and more secure than traditional banking.
Banks know that if they don’t adapt to what blockchain has already made possible, they’ll quickly get left behind.
All this money being invested in blockchain technology and crypto calls to mind a prediction Andy made way back in early 2021…
What we’re seeing from these giant investors is much bigger than crypto or the notion of digital money.
It’s a full-on revolution…
Given the evidence in front of us, it’s quite difficult to envision a financial market that does not evolve to include crypto in a big way.
The revolution is fully underway… regardless of the current price of Bitcoin.
Blockchain technology has disrupted more than just the banking sector. It’s created an entirely new asset class… and an entirely new market. This is an opportunity that could be 10X bigger than crypto… if not more. Even better, you can get in for less than $5. Get all the details here.
Amanda Heckman
Amanda Heckman is the editorial director of Manward Press. With unrivaled meticulousness, she has spent the past dozen or so years – give or take a few sabbaticals – sharpening Andy’s already razorlike wit. A classically trained musician and a skilled writer in her own right, Amanda takes an artistic approach to the complex world of investing. Her skill has led her to work with numerous bestselling authors, award-winning financial gurus and – lucky for us – the fine folks at Manward Press.
