Crypto Tipping Point: The 100X Factor

  Dear fellow investor, I know the market’s been on a wild ride lately. But I want you to take a step back from checking your portfolio for a moment and think about the next decade. Not the next week, or month, or year. The next decade. And just imagine the potential for 100X growth in the next decade… and what that could mean for your portfolio. Because, while cryptocurrencies have of course already made a huge splash… Some estimates now believe that crypto could deliver additional 100-fold growth from here. To US$250 trillion. Which, just to give you a sense, is…

51x bigger than ecommerce

18x bigger than 5G

And even 10x bigger than all of tech… combined

This is simply the largest market opportunity we’ve ever discussed here at The Motley Fool. Now, all the way back in 2017 I made a bold prediction. That the crypto market would become a trillion-dollar-plus industry. Take a look… …and while that prediction was certainly bold at the time, it did come true. In fact, last year the crypto market peaked at US$3 trillion! But here’s the thing. Simply put, I now believe that the crypto market could shortly grow to far exceed even my wildest expectations. And it all comes back to the EIP-4488 upgrade that I’m now expecting as soon as March 12. But more on that critical date in a moment. First, I have some good news…

Did you know only 2.5% of people on Earth have invested in crypto’s fastest-growing breakthroughs?

I know it feels like everyone knows about crypto at this point. Headlines are blaring about NFTs… And celebrities are jumping on the Bitcoin bandwagon… Yet only 2.5% of people on Earth have dipped their toe into the fastest-growing crypto “breakthroughs” that are not yet “mainstream” … but could become so in the coming year. All thanks to EIP-4488. I believe it could launch crypto into the mainstream at an unprecedented pace… and send up to 3,000 affected cryptocurrencies and other digital assets soaring. I’ll explain…

Why EIP-4488 Could Be Crypto’s “100X Factor”

You see, not all cryptos are created equal. Just look at these sector returns from 2021…

Returns ranged from a notable 58%… to a staggering 7,986% in one specific corner of the crypto market. That one sector is what I consider to be crypto’s “breakthrough product” that could bring crypto to the masses beyond what even Bitcoin may be capable of. Now, here’s the problem. Ethereum, which is the second largest crypto after Bitcoin, powers as much as 80% of this sector. And with this sector reportedly recording over US$12 billion in sales last year, a staggering +17,864% year-on-year growth… Demand has just been absolutely astronomical. BUT… as a result, there’s also been consistent network congestion. Which can seriously drive up transaction costs. You can see it here:

Transaction fees could be anywhere between US$20… US$30… up to as much as US$62 at its peak in November of last year. And that’s why I think the EIP-4488 code update is so crucial. This little-known upgrade is designed to drastically reduce transaction fees on Ethereum and the THOUSANDS of second layer “applications” built on top of it. Right now, high transaction costs are simply pricing a lot of people out. But with EIP-4488 on the horizon, that could all be about to change! Crypto’s EIP-4488 “Tipping Point” could be the biggest EVER… We’ve seen this in the past. Where a technology was on a very specific trajectory… and then something changed to rapidly accelerate its adoption. Changing the trajectory of adoption… And these “Tipping Points” have historically minted some investors an absolute fortune. Take solar power, a US$184 billion industry. Solar’s “Tipping Point” happened when it became “the cheapest electricity in history” and its cost dropped below that of gas, coal, and nuclear…

Chart refers to USD.

The trajectory changed, and solar capacity rapidly increased…

Solar is now set to account for nearly HALF of new US electric generating capacity in 2022! And of course… Well-placed solar stocks have made a fortune since the “tipping point.” Take Ameresco — it’s up 638% since the beginning of 2016.

Chart refers to USD.

This just points to the value we see when investors:

1. Correctly call the “tipping point” and get in early
2. Find the best opportunities to benefit

The same pattern also played out with maybe the biggest tech disruption we’ve witnessed so far… The internet. It’s hard to believe now, but back in December 2000, The Daily Mail wrote that people were… Of course, cable operators invested heavily to upgrade their capacity… and the price per megabit per second of broadband service declined by 98%. The tipping point? It happened in 2016 when unlimited plans became more widely available — and once again, you can see the steep increase in the chart:

Chart refers to U.S. markets.

The average household’s internet data usage took off! By 2020 it had jumped about 38-fold compared to ten years earlier. Of course, the internet is now valued at US$2.1 trillion — a lot bigger than the solar industry… So it’s no surprise that the gains potential for those handful of well-placed stocks was a lot bigger, too. Which brings me to Netflix. A long-time Fool recommendation, and of course heavily reliant on people having cheap access to fast unlimited internet. And well, since the beginning of 2012 Netflix has gained a startling 3,728%.

That’s enough to turn a $20,000 investment into $765,000. I think it’s very clear WHY this matters. In these historical examples, every time the costs dropped, the floodgates opened… and growth exploded. And for investors looking to potentially profit, it’s all about:

1. Correctly calling the “tipping point” and getting in early
2. Finding the best opportunities to benefit

And as we saw, the BIGGER the industry… the BIGGER the gains potential. Well, now we have evidence pointing that this same “tipping point” formula could be about to hit in the crypto space — with the anticipated EIP-4488 upgrade, which is designed to dramatically lower transaction costs. Except… Crypto’s EIP-4488 “Tipping Point” could dwarf everything we’ve seen so far! How MUCH opportunity could be unlocked after our predicted March 12 crypto tipping point? We’re talking about a US$250 trillion total estimated opportunity in crypto.

Chart refers to USD.

That’s…. well…. that’s just on a whole different level from anything we’ve talked about. Which is why I believe it could be absolutely crucial for members who do not have any exposure in the crypto market, to position their portfolios before March 12. But WHY March 12? It’s all about EIP-4488. You can see it right here…

EIP-4488 was posted on November 24, 2021 by Vitalik Buterin. He’s the inventor of Ethereum and, frankly, may go down as one of the greatest minds in technology history with impacts equaling a Jobs or a Musk… He essentially saw the limitations of Bitcoin — that it was “just” Internet money. And he created Ethereum, which took the cryptocurrency space in a radical new direction. It allowed millions of programmers across the world to begin building apps… on top of Ethereum. Including other cryptocurrencies, decentralized finance applications, and what I believe is crypto’s “breakthrough” product that can benefit the most from this upgrade. Frankly, thanks to Buterin’s innovation, crypto has become more than what even the greatest visionaries could have imagined mere years before. And now he’s proposed EIP-4488 as a solution to the transaction fee issue. In fact, the developers assessed that EIP-4488 could reduce transaction fees 5-fold. And you know what happened historically when fees got cheaper… Demand skyrocketed! It’s a CLASSIC “tipping point” opportunity, which I believe promises to set Ethereum and the thousands of digital assets built on top of it onto a whole new trajectory… …And potentially open up frankly staggering opportunities for investors who get in before our predicted “tipping point” on March 12. Now, looking at previous major updates on the Ethereum blockchain, and how long it took to implement them, it’s been about 93 days. And the last major update happened on December 9… which leaves only a short time until we reach that critical date. But as I mentioned, it could be sooner than that. Because EIP-4488 is such a critical update. Especially for the ONE sector I believe could see the biggest impact from EIP-4488 — and which I now consider to be crypto’s “breakthrough” product.

Crypto’s “breakthrough” product with +7,986% average returns last year might not be what you think it is…

Chris Dixon, who’s a general partner at the venture capital firm Andreessen Horowitz, called it… Another high-profile Silicon Valley investor, Naval Ravikant, says it could lead to… And billionaire investor Mark Cuban said it was… And get this… last year alone this sector of the crypto market outperformed the U.S. S&P 500 by a factor of 296X! Despite the volatility, the U.S. S&P 500 saw a remarkable total return of 26.9%. Bitcoin ended the year up +58% — more than DOUBLE the S&P but nowhere close to crypto’s breakthrough product. (In fact, Bitcoin was the third-worst performer among the top 20 cryptos by market cap.) Now, the overall crypto market far outperformed Bitcoin and was up a whopping >+2,524% return. However…

Chart refers to U.S. S&P 500.

It was crypto’s “breakthrough” product — NFTs — that saw staggering +7,986% average returns! I believe NFTs could be one of the most powerful — and potentially most profitable — concepts to emerge from crypto technology for forward-thinking investors! Now you may have seen some of the headlines blaring about NFTs… Or read stories of people paying outrageous sums of money for digital art. But here’s the thing. From where I’m sitting, the media is entirely focused on what I consider to be the excesses of the NFT space — and completely missing the REAL story. Because NFTs, or non-fungible tokens, as digital art is just the tip of the iceberg… The real breakthrough is that NFTs are essentially a way to buy a digital good that’s one of a kind and can be re-sold thanks to crypto technology. And not only that. They also make it possible to easily own and trade pieces of goods in the real world like…

Real estate

Insurance policies

Licensing rights

Event tickets

Digital AND physical goods

We’re even seeing the US$50 trillion supply chain and logistics industry make a huge bet on the utility of NFTs to track shipments across the globe!

And now that the EIP-4488 “Tipping Point” could be just weeks away, this could be just the beginning…

As an investor, I can’t help but get excited. Simply because the incredible NFT demand we’re seeing now is driving just mind-boggling returns in some of these underlying crypto assets… Take Solana — this crypto can process 10,000x more transactions than Bitcoin per second… Thanks to its success in the NFT space, it’s now a top 10 crypto with a US$29 billion market cap. Now, I watched Solana’s value shoot up +350% in a couple of months following an NFT launch last year. Even more impressive… through all of 2021, Solana gained +11,281%.

Chart refers to USD.

Another example, and you may have heard of it, is Decentraland. It’s a virtual world in which most everything is an NFT — from its virtual plots of land to the art on the walls in the virtual galleries. And if you think it’s not real because it’s “virtual,” well… Brands like Samsung… Coca Cola… Adidas and Nike… …have all partnered with NFT-driven projects like Decentraland. And for investors who saw the potential in the underlying crypto asset called MANA that resulted in a +4,013%. gain just last year.

Chart refers to USD.

And Decentraland isn’t even the fastest growing digital world that’s taken off. That would be… Axie Infinity. The fastest-growing video game on Earth. It’s an NFT-centric game, with a cryptocurrency that trades under AXS. If you’d invested even just $1,000 at the beginning of last year…

Chart refers to USD.

…you’d have turned it into a staggering $158,000 by December 31! Now, before I reveal our complete EIP-4488 investing strategy designed to position investors before this “revolution” takes off… There’s ONE more thing only crypto insiders know. Only crypto insiders know THIS Historically, after “code upgrades” like EIP-4488 the crypto market spiked. You can see it for yourself when you look at the most recent Bitcoin update…

It last happened on May 11, 2020 when Bitcoin was sitting at US$9,688. But after the update… the price soared to over US$46,000 in just a few months! We saw the same pattern with a previous update, which happened on July 9 in 2016….

The price shot up from US$635 in July… to US$10,542 by November 2017. And we saw it with the first Bitcoin update which happened on November 28 in 2012, too — shortly after the update, the Bitcoin price took off.

It then retracted… but still ended significantly higher than before the update. In fact, it jumped from less than US$13 before the update to over US$567 after the update. That’s a 43X return… that would have turned every $20,000 into $860,000! Do you see the pattern?

When Bitcoin updated its code in 2012… 2016… and 2020… each time the price skyrocketed by a huge multiple! But this time, it’s not just Bitcoin that could be impacted. In fact, the EIP-4488 update could send thousands of cryptos built on Ethereum soaring! And unlock what experts predict could be a 100-fold total crypto market growth from here. Which is why I am SO excited to introduce you to our full EIP-4488 investing solution today…

Now open for a short window:

A service purely dedicated to recommendations in digital assets like cryptocurrencies, NFTs, and more…

In early 2021 The Motley Fool LLC publicly announced a US$5 million investment into Bitcoin. That investment was, more than anything, a statement… A declaration that we were watching the crypto space, building up our capabilities, and that we’re going to give all of our members the same quality of research as we’ve built in stocks. Behind the scenes, we’ve been working with outside experts, building a team of internal analysts and advisors. And today we’re excited to invite new members to Digital Explorers. Right off the bat, any members bold enough to join Digital Explorers are going to notice it’s different than any other Motley Fool service offered today. That’s because it’s a solution entirely focused on the crypto space. Now, The Motley Fool is not abandoning stocks… Far from it. But this Digital Explorers is exclusively dedicated to digital assets like cryptocurrencies and won’t feature stock recommendations.

And Digital Explorers is built to be one of the most dynamic portfolios in Motley Fool history!

First off, our U.S. team has committed to investing US$1 million of The Motley Fool LLC’s own money into Digital Explorers in a real-money portfolio that provides allocation guidance to our members. And of course, as our team announces each new investment, we’ll do so in a way that allows members to act before us. Now, the crypto space is incredibly fast-moving. New opportunities can rise in what feels like the blink of an eye. So, I’m confident this is going to be one of the most dynamic portfolios in Motley Fool history. We plan to make multiple allocation decisions and investments… Every single month. We’ll invest in cryptocurrencies, we could invest in NFTs, we could even in assets that provide yield… But here’s what’s important: members will have a trusted source like The Motley Fool to give them guidance and instruction throughout their entire membership. We’re investing only in what we believe are the highest-quality assets. After all, in the past five years you could have traded a ton chasing returns, but as we’ve seen, simply holding game-changers like Bitcoin and Ethereum was enough to turn investments of $10,000 into nearly $1 million. The point being, if investors like you can invest in the most high-quality projects, it’s our belief they’ll be in a great position to potentially grow wealth for the long run. Of course, with something like crypto the upside has historically been incredible, but make no mistake: It’s a volatile space! So we’ll show members how to diversify and not make just a single bet, but instead build a diversified portfolio. One that’s allocated across foundational cryptos, growth markets like NFTs, De-Fi (or decentralized finance), and Web3 cryptos that we believe could all stand to gain massively from the expected EIP-4488 upgrade. Here’s what’s waiting for members inside Digital Explorers the moment they join… Starting with 19 official recommendations along with 12 “watchlist” assets. Among them are cryptos including…

The fastest growing web browser, which is actually a crypto asset, that’s growing faster than Google Chrome! In fact, in 2021, it doubled its users — for the fifth year in a row! — with no signs of slowing down.

An early-stage crypto that’s a top contender to become the crypto of the metaverse that’s currently sitting at just a US$1.5 billion market cap… yet tech giant Microsoft is already partnering with this crypto to monetize in-game NFTs… so our belief is a valuation in the tens of billions may not be out of its reach!

And an Ethereum-based token that soared 807% last year by disrupting the sports-fan industry… and just announced exciting new deals with major sports franchises in the U.S. and across the globe

Of course, that’s just a small preview… And since we’re investing Motley Fool capital into these assets, you’ll know our interests are aligned, and of course, we’ll always invest only after we’ve given members a chance to do so first.

And Digital Explorers is targeting an ambitious goal: 10X returns in 6 years!

Now, I should note that this return target is higher than most of our stock services, but we expect it to come with more volatility. The crypto space doesn’t move consistently “up and to the right.” It’s a space that — while returns have been historically outstanding — features periods of extreme volatility in both gains and losses. Which is why it was so important for The Motley Fool to launch Digital Explorers as a portfolio that could be opportunistic. One that gives members guidance on our top recommendations when volatility spikes. The portfolio is being led by Bernd Schmid. Bernd is a CFA charterholder and has a master’s degree from the Hamburg University of Technology and an MBA from the Northern Institute of Technology Management. Bernd made his first investment in Bitcoin in 2013 and has been working with the Fool since 2014, serving as the lead advisor for Stock Advisor Germany. Bernd’s technical at heart (before joining the Fool he was a scientist in the fields of aerospace and photonic crystals), has experienced the ups and downs the crypto space has to offer, and is deeply passionate about the future of the space. In addition to Bernd, we have a growing research team and roster of outside experts that are part of our continued commitment to outstanding research and breadth of coverage across the crypto space! And we’ve built a library of “how to” guides and reports to make sure members of all experience levels can invest confidently in this emerging space! We understand that the crypto space is significantly different from stocks. Many members are simply too intimidated to get started. Which is why we’ve put an incredible amount of effort creating exclusive reports to get anyone interested in the crypto space started. These include:

How to Setup a Digital Wallet

Cryptocurrency 101: A Beginner’s Guide

7 Things to Consider When Adding Digital Assets to Your Portfolio

How and Where to Buy Cryptos

And more!

In addition, every recommendation in Digital Explorers comes with research reports written by our team so members can clearly understand their opportunities and risks. Because the fact is, in a new and emerging space like crypto it’s simply hard to find trusted sources… Hard to find research… Hard to find a strategic way to build a diversified portfolio… Well, our goal is nothing short of making Digital Explorers the most comprehensive one-stop shop for investors who are serious about making the most of this space at a time that we believe could be absolutely pivotal.

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