PREDICTIONS FOR THE NEWYEAR
ago. That’s growth of 2,650%. We expect that number to multiply by 10 times that in 2021. Blockchain-powered projects are a magnet for capital. That’s because they are so new and growing so rapidly, that many DeFi applications pay holders incredible yields on their funds. It’s not uncommon to find double-digit yields simply for lending out stablecoins (crypto tokens that are pegged to the price of another asset... most commonly the U.S. dollar). Got $10,000? Convert it to 10,000 USDC tokens (1 USDC token should always be worth $1). And as I type this... you could be earning 20% or more on it with DeFi lending platforms like Cream Finance. You read that right... 20% or more... paid out on tokens backed by the U.S. dollar. We’re seeing a new crop of companies make earning these yields easier, too. So on the one hand, you have about $18 trillion in negative- yielding debt today. On the other hand, you have smart money earning double-digit yields getting easier and easier. It’s unsustainable... And DeFi will be part of the solution. Rent- seeking middlemen will still exist for many years into the future, but this year, the world will finally grasp what’s coming. At some point in 2021, I expect you’ll hear the word DeFi almost daily on CNBC. But as billions of dollars continue to make their way to blockchain-powered investments... the smart money will stop marveling at the technology and start calling it by its real names: income... yield... finance.
BRYAN BEACH STANSBERRY VENTURE VALUE
I can assure you I won’t be buying bitcoin in 2021... And no, I’m not about to give you a tulip- bulb lecture or articulate all the reasons bitcoin believers are crazy. I actually understand the bitcoin story fairly well. Some of it rings true to me... And, yes, I admit to having some good old-fashioned “fear of missing out” (“FOMO”). So what’s my hang-up? The truth is I’m terrified of the whole crypto concept. Secret passcodes written on slips of paper, electronic wallets, unregulated exchanges that seem to be hacked every six months or so... You may have heard about James Howells, the Welshman who mined 7,500 worthless bitcoin back in 2013, then threw his computer away. Today it’s worth nearly $300 million. He’s offering his hometown of Newport $70 million to let him dig up the town dump to look for it. Then there’s Stefan Thomas, the San Francisco programmer who owns 7,002 bitcoin but forgot his password. He’s made eight guesses... and is down to his last two. In Thomas’s case, there’s no “click here to have us e-mail you a link to change your password”... If he misses his last two chances, his $220 million of
98
January 2021
Made with FlippingBook - Online catalogs