DeFi and Blockchain: Power Plays for #A20
You know Ian Dyer’s bitcoin forecast of $350K — CRUSHING mine.
And right now, there are two cryptoverse sectors that stand to soar with our predictions.
These America 2.0 (#A20) power plays are: DeFi (decentralized finance) and blockchain.
DeFi is incentivizing investors to stay in their crypto longer and earn interest.
And with the global supply crunch, this is the perfect market for suppliers to adopt blockchain as a means of organizing production.
(In fact, I take these blockchain innovations even further in this presentation here. It could transform everything from marriage licensing to voting and homeownership.)
Find out the blockchain ETF you can buy RIGHT NOW and an opportunity to ride the DeFi wave higher in today’s Market Talk:
Amber Lancaster: Hello, Bold Profits Nation. Welcome to Market Talk Monday on the Paul Mampilly YouTube channel. I am Amber Lancaster.
Today, Ian Dyer — Senior Investment Analyst and editor of Crypto Flash Trader, along with two other elite trading services — is here to share how two Fourth Industrial Revolution technologies, decentralized finance AKA DeFi and blockchain technology, are set to help the crypto market soar higher in the coming months.
Hello Ian. Good morning. Nice to see you as always.
Ian Dyer: Hi Amber. How are you?
Amber: Doing well. Thank you for being here today and sharing your insights. Just a housekeeping note, if you are new to this channel make sure to click that subscribe button. Give us a thumbs up if you like the content. Visit us at BoldProfitsDaily.com to sign up for our free e-letter.
Will DeFi Push The Crypto Market Higher?
Let’s get started. Ian, in your October 8 Bold Profits Daily article titled, “Bitcoin Highs Ahead, Alt Coins Could Do Even Better,” you mentioned how new industries like DeFi are rapidly gaining momentum and that you believe the next six-plus months are going to be incredible for crypto with DeFi as a catalyst.
Also, that we’re now at the beginning of a new rally for all-time highs, marching ever closer to your Bitcoin at $350,000 forecast. While we have you here, can you share two ways DeFi will help push the crypto market higher in the coming months?
Ian: Sure. One of those ways is that DeFi incentivizes people to hold on to their coins for longer. A lot of the people who use these DeFi apps do so in order to earn interest. For example, Uniswap is the biggest DeFi exchange. This is where people go to trade coins in a totally decentralized way.
All the supply of the coins is actually provided by the users. Say you want to put your Ethereum and Uniswap coin into the exchange. When people trade Ethereum for Uniswap or vice versa, you actually get a part of that trading fee. It’s a good passive way to earn income.
It’s one of the ways we are seeing DeFi gaining a lot of momentum. People are willing to leave their money in there. It incentivizes long-term holding.
The second way is institutional money. To my knowledge, institutions haven’t put their money into DeFi yet. There’s no better time than now because bank accounts and money markets are giving zero yield. They are looking for a way to put all their cash to use.
There is more than $1 trillion in cash on the sideline. Actually, at this point I think there is more than $2 trillion in cash on the sideline. With DeFi, they will be able to earn several percent, which is much more than even the bond markets are able to offer at this point.
Institutions coming into these protocols and apps is going to be beneficial for DeFi and the crypto market going forward. I think between the incentives for long-term holding and earning interest over the long term and the institutional adoption we are going to see in the next year, I think are the two ways I would see DeFi being a huge push for the crypto market.
Amber: That’s amazing. Income generation is always a good part of a portfolio to have over the long term. You said 7%. I want to make sure that’s what I heard? 7% interest with DeFi?
Ian: I said several percent. But there are ways you can earn 7% in DeFi.
Amber: That’s amazing. Thank you for sharing that information with us this morning. My next question is about the supply chain situation. We are going through a supply chain crunch. Most importantly, it’s how blockchain could be a help to the supply chain markets going forward.
I know Paul over the last year warned us about the supply chain crunch we are hearing about now and that it would hit the world over because we were shut down and now we’re ramping things up. It’s to be expected. He said it could go on for some time.
My question to you is, can you share how Four Industrial Revolution, blockchain technology could help reshape global commerce supply chain structures for the better? I know it can help.
How Could Blockchain Reshape Global Commerce Supply Chain?
Ian: It’s actually a perfect situation to bring in blockchain. With blockchain, it’s a much simpler way of recording data. It’s basically a network of transaction. Of course Bitcoin was the one that brought blockchain to light and it’s used to record financial transactions, but you can record anything on a blockchain.
One thing is when we are seeing the worst part of international trade, I think a lot of countries are going to bring things back to domestic production where they can. I think whenever there is a big switch like that there’s going to need to be a lot of investment in your own system.
Whenever there is a big investment like that, it’s always going to be the most efficient technology. Blockchain is that, especially for supply chain. It records every transaction and can be extremely helpful for tracking products, managing inventory levels and even having inventory level targets.
I bet a lot of companies now are going to want to be overstocked in whatever is nonperishable. That’s one aspect of this. It’s the decentralized, easy way to manage inventory and track anything they are producing or supplying.
The other way is through the security of the blockchain. When you have a blockchain, whenever there’s a transaction every single computer or node on that network verifies that transaction as being legitimate. Every time there’s a new data entry it’s verified by the whole network at once.
With the cyber security issues companies have been having, I think it’s another aspect for why they are going to be choosing blockchain.
Amber: I appreciate your take on that. Blockchain is ultimately the efficient technology for the new supply chain era. Supply chain 2.0. Ian, thank you for stopping by and sharing your thoughts on Market Talk. We appreciate you so much.
Ian: Thanks, as always, for having me.
Amber: You’re welcome. Talk to you soon. Thank you again to Ian for joining us today on Market Talk. I just want to keep us always looking forward investment wise. It’s what Paul always tells the investment team and all the team members at Bold Profits.
I’d like to share a current example of how investment in blockchain technology is already making a difference in companies’ supply chain management. Check out this headline.
Per CarScoops, Jaguar Land Rover have partnered with Circulor, a traceability provider that uses blockchain technology to track global supply chains, to trials the world’s first digital supply chain for sustainable leather.
Together, the companies plan to, “use blockchain to create a ‘digital twin’ of the raw material that allows progress to be tracked through the leather supply chain simultaneously in the real world and digitally. Using GPS data, biometrics, and QR codes, the movement of the leather through every step in the supply chain can be verified.”
That’s similar to what Ian was just saying. Along with the tracing of the origin of the leather, JLR is offering more sustainable materials and the company has introduced vegan materials such as eucalyptus textiles available on the Range Rover Evoque. That’s blockchain in motion.
What this tells us is that the Fourth Industrial Revolution technology like blockchain is weaving its way and being used in a variety of industries. As the backbone of the cryptocurrency market, this tech will be part of our daily lives one way or the other.
Statista data forecasts that global blockchain technology revenues will see massive growth in the coming years with the market expected to climb to more than $39 billion by 2025. The financial sector has been one of the quickest blockchain investors over the past years, investing 66% of their tech in blockchain.
Here are two steps you can take today to be part of this market-sized rise in blockchain. First, consider adding shares of the Amplify Transformational Data Sharing ETF (NYSE Arca: BLOK). It’s your America 2.0, Fourth Industrial Revolution type of trade.
With a total return of 101% over the past year, this ETF seeks to invest in companies actively involved in the development and utilization of transformational data sharing technologies.
Second, Ian is steeped in the crypto and blockchain technology market. In his Crypto Flash Trader service he recommends trades aiming for healthy gains in the crypto blockchain market. To learn more about Ian’s service and how to become a member, click the strong hands.
Remember, you can follow Paul, Ian and me on Twitter: @MampillyGuru, @IanDyerGuru and @ALancasterGuru. Thank you so much for joining me this week. Have a great week ahead. Until next time, take care.
Editor, Profits Unlimited
I’ve been investing for more than 25 years. I started my career on Wall Street in 1991 as an assistant portfolio manager at Bankers Trust. I quickly advanced to prominent positions at Deutsche Bank and ING, managing multimillion-dollar accounts. In 2006, the owners of a $6 billion firm named Kinetics Asset Management recruited me to manage their hedge fund.