We haven’t seen much in the way of brand-new cryptocurrency newsletters in the past few months… which is probably understandable, since so many of the hot ideas that the early opportunistic newsletters had us salivating over in December and January lost 90% or more of their value when the air suddenly floofed out of the crypto-token bubble.
So I was a little curious to see what the enthusiasts are touting now — there remain just about 2,000 different coins tracked by CoinMarketCap.com (I remember being bewildered when it went over 100 maybe a year ago), and there are quite a few biggish ones (as of this moment, you have to go down to number 17 on the list before you find one that has a smaller “market cap” than a billion dollars, and all the top 100 have nominal values of at least $50 million each.
Whether those numbers mean anything real or not in the end I can’t tell you, but it at least means that people are ascribing value to a lot of different altcoins — whether it’s because they like the technology, want to somehow buy a piece of “the future,” have particular insight into one coin over another, or just like trading and betting these semi-anonymous tokens that they don’t really know anything about, I don’t know. I suspect it’s mostly “maybe I’ll get lucky” speculation and momentum-chasing trading, since there’s always a market that appeals to that kind of behavior (many of those crypto-chasers moved on to the marijuana stocks, but not all of them), but it’s equally true that there are a lot of true believers in blockchain who think this is like renting out your garage to Steve Jobs and Steve Wozniak. So who knows.
And Doug Casey, who has long adored speculation, particularly in mining stocks, is launching a new cryptocurrency/blockchain newsletter helmed by a guy named Marco Wutzer — it’s called Disruptive Profits ($1,595 up front, no refunds, autorenews after two years at $2,000/yr), and the real headline tease is that he’ll reveal the next bit winner in a special report called, “The New Ethereum: A Second Chance for 100X Gains.”
Here’s what Justin Spittler, who actually signs the ad letter, says about this:
“I can tell you with total conviction: This coin has the potential to replace Ethereum. And yet, it’s 1,000X smaller. I think you’ll agree it won’t stay that way for much longer….
“And while hundred and multi-hundred-bagger winners are rare, there’s no other place in the market with this kind of potential. In fact, I believe the next 100-bagger opportunity is one little-known coin insiders are loading up on right now.
“At last count, 32 VC’s have poured in more than $20 million. In just six months.”
There are even some creepy celebrity event photos with a younger Marco Wutzer standing next to Pink and Alec Baldwin, for some reason… and they establish his bona fides by saying that he was an early investor in eGold and other digital currencies in the pre-bitcoin era and made a fortune in crypto and traveled the world setting up cryptocurrency investments. I don’t know anything else about him.
And they’re positioning this newsletter as a “buy and hold” cryptocurrency newsletter — more like a venture capital model, less like a trading service because “traders get killed.”
The ad also cites some huge gainers in the crypto world…
“Like Stratis, which has risen 8,800% since January of last year.
“Spectrecoin, which has risen 2,150% since then.
“And Augur, which is up 1,269% over that same period.”
I suppose those numbers are probably accurate, if you pick the right day, but, of course, those projects barely existed in January 2017 and were priced at fractions of a penny — if you had bought anytime after anyone had heard of them or they became available on any exchanges, even as recently as May of 2017, you would have lost money if you held until today (though they all did go up 10X in value or so during the crypto bubble into December and January last winter before giving up all those gains).
And this new idea is marketed as “the next ethereum,” so first they have to explain that a little…
“Contrary to popular opinion…
“The single biggest force in advancing blockchain technology is NOT Bitcoin.
“Rather, it’s a digital currency called ‘Ethereum.’
“If Bitcoin is like email…
“Then Ethereum is like the Internet.”
And a bit more that…
“Ethereum is the greatest force in building out the blockchain.
“That’s why over 300 global businesses have joined a group called the Ethereum Enterprise Alliance….Are you getting our free Daily Update
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“Ethereum’s importance and size is actually vastly understated!
“All told, there are 496 different cryptocurrencies built on Ethereum’s technology.”
Which brings us, of course, to the tease about this “new ethereum” ….
“And the real future of this space, and big opportunity for you, is in what Marco calls
the ‘New Ethereum’…
“The original Ethereum has risen 41,000% since it launched back in 2015.
“The ‘New Ethereum’ can do just as well, if not better.”
One significant impediment to actually using cryptocurrencies in anything practical, we’re told, is transaction speed — both bitcoin and ethereum have had periods of time when transactions took half an hour to finish even when the network wasn’t buried in some sort of crisis, and hours or days at tough times… and it always takes substantially longer than credit card transactions, which is important for “transactional” type cryptocurrencies because credit cards are the gold standard of payment technology networks at the moment.
So lots of the new cryptocurrencies are designed to speed things up and make transactions much more efficient, without losing the potentially low-cost and high-security aspects that make blockchain appealing. So it won’t surprise you to hear that this “new ethereum” is being touted because of its speed….
“New Ethereum is on pace to be 5,000 faster than Ethereum!
“Ethereum can process 20 transactions per second…
“Paypal handles 193 per second…
“Visa can process 24,000…