Understanding the Wealth-Creating Power of Cryptocurrency – InvestorPlace

Well, one thing is for sure: Nothing is going to be the same in the crypto market after this year.

Perhaps the most jarring example of the bearish crypto market this year has been the complete collapse of Terra (LUNA).

As you can see, its not pretty. The coin lost 98% of its value or around $40 billion, in a matter of hours.

While this drop was shocking for a lot of crypto investors (and rightfully so), it just goes to show that value destruction can happen to even the biggest cryptos out there.

The sister token to TerraUSD (UST) an algorithmic stablecoin pegged the U.S. Dollar exposed a major fault within the crypto industry: under-collateralization.

However, my team and I dont see this as fault. Instead, we see it as an opportunity of what to look for and what to avoid.

I firmly believe cryptos and blockchain in general represent some of the most promising innovations of our time. But just like the internet before it, this shift wont happen overnight.

Long-term, I am extremely bullish on cryptocurrencies. But this cryptocurrency bubble must reach its natural conclusion the same way the dot-com boom of 2000 did with an enormous crash.

While this may be the beginnings of the big one for cryptocurrencies, this crash isnt the end. Its far from it.

This is the beginning of the Cryptocurrency Revolution. Its the end of bad cryptos just built on hype and the emergence of strong ones made with world-changing tech.

We have strong cause to believe this, including using Gartners Hype Cycle. It teaches us that new technologies go through five phases:

The stages are represented graphically in the following chart.

We believe cryptos are somewhere in the Peak of Inflated Expectations phase. Big-name cryptocurrencies will begin to fail, and the mainstream media will begin writing about these failures.

Over the coming months to years, well enter the Trough of Disillusionment. This is where thousands of cryptos will fail. And several hundred billion dollars of value will be wiped out.

Investors who are smart here will make millions.

After the Trough of Disillusionment comes the Slope of Entitlement, swiftly followed by the Plateau of Productivity.The big money is made in these phases.

There, the wheat is separated from the chaff, and true visionaries and innovators in a new technology emerge.

During the internet era, this durable growth phase started in 2003. In that time, companies like Amazon (NASDAQ:AMZN), Netflix (NASDAQ:NFLX), Facebook and Alphabet (NASDAQ:GOOGL) used the internet to create second- and third-generation products and services that would go on to change the world.

Cryptos will follow the same path.

You could do a lot worse than buying Bitcoin at this price. But theres a much bigger opportunity at hand

Indeed, you could domuch betterin several of Bitcoins smaller cryptocurrency cousins.

In fact, there are a handful of very small coins that could soar more than 31 times that of Bitcoin.

Thats right. If youre poised to make $10,000 in BTC, you could make 31 times that $310,000 in its tiny cousins.

Or if youre poised to make $100,000 in BTC, you could make $3.1 million instead.

The million-dollar question is:What are the best cryptocurrencies to buy today that have enormous long-term upside potential?These are the ones that could help you achieve total financial freedom in a very short time.

I urge you to learn about this huge story. Ill teach you about the transformative technology of altcoins. And Ill share how to leverage this undercurrent of cryptocurrency innovation to set yourself up for life-changing returns.

Right now, theres a fuse being lit under the altcoin market. And itll set off one of the largest explosions of wealth in modern history. People who invest modest stakes in altcoins will make millions of dollars.

To truly realize the magnitude of this opportunity, you must understand that altcoins are different than how most perceive them.

These assets arent fantasy internet money. And many are about to skyrocket thousands of percent.

Theyre investments in one of the most valuable, most revolutionary technologies ever created.

And theyll generate a multi-trillion-dollar tsunami of wealth for their owners.

Remember; the underlying technology behind Bitcoin and altcoins isthe blockchain.

You can think of cryptocurrency and the blockchain like a virtual ledger.

But I prefer to say blockchain technologies are justreally, really, reallyvaluable software programs.

Now, if youve paid attention to the stock market over the past30 years,you should be ready to jump out of your chair and buy altcoins with both hands right now.

Thats because software programs are the oil of the 21st century. They are one of the greatest forces for wealth creation on Earth.

In the 20th century, the discovery of oil deposits around the world minted millionaires faster than anyone could count.

It was one of the fastest, biggest accumulations of wealth in history. People went from being broke to having more money than their grandkids could ever spendvirtually overnight.

When I say software programs are of the greatest forces for wealth creation, Im not talking about conventional wealth creation. That takes 30 years to save up $1 million.

Im talking about wealth creationon steroids, where Investors can make $30 million inone year. I know that sounds outlandish, but lets look at the amazing facts right in front of us.

Bill Gates became one of the worlds richest men because of software programs. Just think about the Microsoft (NASDAQ:MSFT) spreadsheet program we call Excel.

How much time did Excel save the human race a billion years, 10 billion years?

Excel is now the worlds most popular spreadsheet program. By allowing us to automate calculations and financial analysis, it has saved us incredible amounts of time. We no longer have to do single calculations by hand.

One person running Excel can do the work of a million accountants from days past.

Software programs have incredible power. And its spread across all industries.

Over the past 30 years, software programs have created an explosion of efficiency and human productivity. Great software can help you make smart business decisions, find travel deals, talk to loved ones, and get a cheap ride home.

It has massively improved our ability to communicate, share information, complete transactions, and gather and analyze data.

Think about health care, education, transportation, manufacturing, energy production, food production, retail, banking, you name it. Computer programs have allowed us to do it all much more efficiently.

Good software has saved us so much time, money and frustration. Its no wonder its kicked off one of the largest, fastest accumulations of wealth in human history.

In 1986, computer program leader Microsoft went public. Shares are up more than 1,185% since then.

Computer program leader Oracle (NYSE:ORCL) went public in 1986 as well. Oracle founder Larry Ellison is one of the worlds richest people, worth over $90 billion.

In 1998, Larry Page and Sergey Brin founded Google and created the worlds most valuable search engine program. Both are now worth more than $90 billion each. And their early backers made billions, as well.

Software programs have become the worlds ultimate wealth creators. Thats because we all place enormous value on their ability to save us time and headaches. And its also because theyve made us massively more productive.

Which brings me to my million-dollar point.

Blockchain technology is about to unleash an epic new wave of computer program wealth.

Real altcoins arent anything like fantasy internet money, as theyre portrayed in the press. Investments in the best of them are investments in the next generation of revolutionary software programs.

Big picture, blockchain allows for disintermediation across all industries. Its arguably the most disruptive technology since the internet. And at its core is its centralized and immutable ledger.

This ledger enables innately untrustworthy entities to create trustworthy systems, all without the need for any central authority.

Blockchain enables folks to remove the middleman from legacy systems and replace them with a collective ledger.

Now why would we do that? Because middlemen are often unnecessary profit-takers.

Further, theyre sometimes subject to corruption (see: the financial crisis of 08).

By removing and replacing them with an automated and incorruptible technology, we can make todays systems and processes cheaper, faster, and more trustworthy.

The applications here are theoretically infinite. One that Wall Street is currently drooling over is decentralized finance (DeFi). With cryptocurrency, we can create a new era offinancethat doesnt involve big banks as profit-taking intermediaries.

And DeFi is the future.

After all, its intended to disintermediate banks, like Goldman Sachs (NYSE:GS), JPMorgan (NYSE:JPM), and Wells Fargo (NYSE:WFC). Those are multi-hundred-billion-dollar companies. The disruption opportunity is huge.

But theres a much, much bigger opportunity in disintermediating technology titans like Alphabet and Amazon, who are trillion-dollar companies.

Thats why I love the idea of dApps, or decentralized applications.

DApps are software applications built on the blockchain. And this can be anything. Think a video media application like YouTube, a driver-rider app like Uber (NYSE:UBER), a music streaming app like Spotify (NYSE:SPOT).

These apps are coded on the blockchain. And therefore, theres no central authority that runs and profits from the app, either via subscription sales or digital ads. By removing that central authority, dApps create a new generation of truly free software applications.

Oftentimes, these dApps have underlying cryptocurrencies. Theyre used as a form of in-app currency or incentive token for developers and blockchain participants.

The appreciating value for these cryptos represents the economic value of the dApp. Instead of developers profiting from digital ad sales, they make money by owning the dApps cryptocurrency. And that rises in value as more folks use the platform.

I firmly believe that dApps will disrupt everything. The future YouTubes, Ubers and Spotifys will be dApps. In fact, most, if not all, apps in the future will be dApps.

During the internet craze of the late 90s and early aughts, the companies that succeeded did something very simple.

They didnt reinvent the wheel or create brand-new industries.

They just digitized what was already workingin the physical world.

Malls were working. So,Amazondigitized malls and turned intothedigital mall.

Movie theaters were working. So,Netflixdigitized movie theaters and turned intothedigital movie theater.

The winning playbook in the dot-com boom was astoundingly simple. Find something thats working in the physical economy anddigitize it.

And the winning playbook in the Cryptocurrency Boom will be equally simple. Find something thats working in the digital economy anddecentralize it. The cryptocurrencies that dothisthe best will turn into 100X investment opportunities over the next decade.

When you shift your perspective on altcoins, you realize that theyre not fantasy internet money. Theyre investments in systems that make our lives easier, more productive, and more efficient.

Investing in the best altcoins now is like taking an early stake inAdobe (NASDAQ:ADBE) in 1998. It created the hugely popular PDF program. And the stock has soared 3,809% since then.

Thats why well be holding an emergency briefing on June 14 at 7 p.m. Eastern. Well discuss how the phenomenon plaguing the crypto markets recently could spark the minting of a new wave of millionaires.

Despite all the negative headlines weve been seeing, a new day is dawning. And a select few off-the-radar coins will emerge as the new leaders of the cryptocurrency markets.

If you want to get ahead of this phenomenon, sign up for my free Crypto in Crisis event now!

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.

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Understanding the Wealth-Creating Power of Cryptocurrency - InvestorPlace