Crypto Grows Up
Amanda Heckman|September 11, 2021
Like a child learning to walk, crypto got some bumps and bruises this week.
But it also took a huge leap forward.
In a huge milestone for the market, El Salvador began using Bitcoin as legal tender.
It’s a story worth watching – and you can be sure many governments will be – but it opened with a few hiccups.
Chivo, the virtual wallet and payment app that will enable crypto transactions in the country, wasn’t available on various internet platforms at first, so many folks couldn’t sign up to start using it.
And on the same day, Bitcoin tanked 13% before recovering a bit. Seems some antsy sellers pulled the trigger and took some profits as El Salvador went live… or maybe, as the internet conspiracists like to push, a large, government-backed entity sent a message by pushing prices lower.
But El Salvador’s president took the drop as a buying opportunity and quickly snatched up 150 more coins, worth a total of $7 million.
As we’ve said often, crypto’s adoption has only just begun. As crypto becomes more and more entrenched in our financial systems and daily lives, the volatility will subside.
A Vast Improvement
We also celebrated the big news that a little-known bank is going to allow customers to purchase crypto directly in their FDIC-insured checking accounts.
All year, we’ve been telling our readers to watch for a major shift in the way digital money is traded and owned. Historically, it’s been an odd practice. Some coins are traded here… others can only be had there. You might need a digital wallet… or maybe not.
We’ve said a big change will come. It must.
And whoever leads the charge will get rich.
That day is here.
Vast Bank, in a partnership with Coinbase and SAP, is opening the crypto market to an entirely new crowd. We’re talking about, as Andy wrote, “the huge crowd of folks who are interested in crypto but aren’t so sure about the technological hoops.”
The fact that the bank received regulatory approval is huge. We can expect more banks to follow suit… and quickly. And the partnership shows just how much the market is maturing.
Going After the Bad Guys
And for more proof that crypto is growing up… Mastercard agreed to buy blockchain analytics startup CipherTrace.
The company develops tools that help businesses and law enforcement track down illicit digital currency transactions.
One of crypto’s major selling points is its decentralized nature (a triumph for liberty lovers)… but that comes with unfavorable side effects like enabling hard-to-trace criminal activity. But companies like CipherTrace are attacking that problem head-on.
The purchase makes it clear Mastercard is taking the crypto market seriously – and recognizes that crypto is becoming a bigger part of everyday transactions.
The headwinds crypto faces are not unlike those Netflix faced in its early days… when the skeptics were out in full force, saying the DVD-mailing business model would never work. But Netflix grew, adapted and developed into the powerhouse it is today thanks to its industry-disrupting innovation… We’re now seeing the same thing happen with crypto.
Like proud parents, we’re cheering on crypto’s growth and milestones. Despite the bumps and bruises, it’s going to grow up into something quite powerful.
And as the market matures, it’s clear Bitcoin is only part of the story… the first generation. We’ve got our eye on what’s coming next. And Andy’s found three cryptos that he expects to revolutionize industries ranging from banking and finance to real estate and Big Tech.
For his latest research on the cryptos that could be even bigger than Bitcoin, click here.
Amanda Heckman|Editorial Director
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.