The ultimate “middleman” killer…
- Stephen McBride
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- April 11, 2024
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This article appears courtesy of RiskHedge.
Stephen’s note: Nine days. That’s all that’s left until bitcoin’s (BTC) fourth halving—an event that’s historically yielded big gains to those who got in beforehand.
But if you’ve been following along, you know bitcoin is not my top way to play it. There’s a different disruptive investment I believe will outperform.
Today, I sit down with RiskHedge Executive Editor Chris Reilly to explain more...
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Chris Reilly: Stephen, you’re known as the “disruption guy.”
You focus on world-class, disruptive businesses. You’ve been doing this a long time and have a long list of winning disruptor stock recommendations to your credit, like Trade Desk (TTD), Okta (OKTA), Albemarle (ALB), ASML (ASML), and many more. These all saw triple-digit gains at a minimum… 950%+ in the case of TTD.
In a nutshell, disruptor stocks change the world by creating, transforming, and flipping entire industries on their heads.
But today, you say there’s a big opportunity in a different type of disruptor... especially as we head into bitcoin’s fourth halving.
Stephen: Hi, Chris. Yes. You mentioned some phrases that get thrown around a lot when we talk about disruptors…
Transforming industries… Changing the world… Flipping entire industries on their heads…
Let’s get more specific. See, many of the best disruptors hand out big gains because they do one thing very well. Top disruptors kill middlemen.
Think of true disruptors as a heat-seeking missile. They seek and destroy “middlemen” like travel agents… real estate agents… and stockbrokers.
Chris: Please explain…
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Stephen: Think about booking vacations before the internet. What a pain. The only way to find out which airline flew where was to pick up the phone and call. It was a huge hassle.
Then online disruptors like Expedia (EXPE) and Priceline (BKNG) came along. With a few clicks, you could compare any flight or hotel in the world. Since 2000, more than half the travel agencies in America have shut their doors.
Meanwhile, Priceline made early investors a fortune. Since 2001, its stock has risen 47,000%+.
Or consider stockbrokers. They were once the world’s best-paid middlemen. Brokers charged $49/trade, on average, back in 1975!
Today, stockbrokers are dying off. For most folks, there’s no need to call up a broker when you can trade stocks for free on Interactive Brokers (IBKR), Schwab (SCHW), or pretty much every platform. Schwab soared 475% from 2003 to the beginning of this year. Interactive Brokers climbed 455% from 2013‒2021.
Realtors are facing a similar squeeze from online competition. Zillow (Z) makes it easy and free to research any house or neighborhood. Its stock appreciated over 600% from 2015‒2021.
These are all disruptor stocks. The disruptors I’m focused on heading into next week’s bitcoin halving are disruptor cryptos.
Chris: Explain how a crypto can be a disruptor. Most people think of crypto as internet money.
Stephen: Bitcoin is internet money. The tech behind it, blockchain, automates trust between strangers. It will prove to be the ultimate middleman killer.
Think about when you buy a stock. You don’t know the person you’re buying it from. Or when you buy something on the internet—you’re sending money to a stranger.
We’ve always relied on bankers and brokers to be the trusted middlemen to facilitate these transactions. Blockchain makes them obsolete.
Chris: Give us an example.
Stephen: Some of our readers may have heard of Uniswap (UNI).
Think of Uniswap like the new Nasdaq. It’s a $7 billion stock market for cryptos built on the blockchain. You can go to uniswap.org and buy thousands of cryptos like bitcoin and Ethereum (ETH).
Unlike the stock market, Uniswap isn’t run by brokers. Every Uniswap trade is processed by code. This code links buyers and sellers directly and completely cuts out middlemen.
UniSwap just crossed $2 trillion in trading volume. That’s larger than Australia’s GDP.
Its UNI token handed early investors gains of 500%+.
Aave (AAVE) is another disruptor crypto that’s threatening to put middlemen out of business. It's disrupting banks’ most profitable business: borrowing and lending.
Chris: Sounds like traditional finance is in trouble…
Stephen: It’s not just finance. Disruptor cryptos are stealing business from middlemen everywhere. The world’s most innovative, fastest-growing businesses are being built on the blockchain as we speak. This is the ultimate opportunity in crypto.
I’m focused on disruptor cryptos finding new ways to cut out middlemen. Real businesses, making real money… and disrupting entire industries in the process.
In my RiskHedge Venture crypto advisory, we invested in Hivemapper (HONEY), which is reinventing “mapping.” Hivemapper makes a 4K, high-definition dashcam. Anyone can buy one of these dashcams and attach it to their rearview mirror.
The camera automatically “maps” the roads as you drive around, just like a Google Street View car. Hivemapper then feeds these images into its global map.
Hivemapper pays you in crypto for updating its map. In other words, you earn tokens by simply driving your car.
Hivemapper launched in November 2022 and is growing at a blistering pace... with 120,000+ Hivemapper drivers in 4,438 regions across the globe.
Chris: A great thing about crypto is that individual investors can invest in projects early—much earlier than they can on the stock market. You recommended HONEY at, what, a little over $0.01? Then you recommended a “free ride” (selling enough shares to recoup your initial investment) when it hit $0.12, up more than 1,000%.
Stephen: Great point. Most companies don’t IPO these days until they’re rather large. Buying an exciting, fast-growing company for 1 cent on the stock market is unheard of these days. You have to be a venture capitalist to get that kind of early access. In crypto, anyone can do it.
Chris: This is exactly what you help readers do inside your RiskHedge Venture crypto service. We’re now accepting new members. Click here to learn more.
Stephen: Appreciate it. Talk soon.
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This article appears courtesy of RH Research LLC. RiskHedge publishes investment research and is independent of Mauldin Economics. Mauldin Economics may earn an affiliate commission from purchases you make at RiskHedge.com