If you’re like most of us, the term cryptocorns is about as foreign a notion as anything you have ever heard. In our technology driven world it seems like new words pop up so frequently it is impossible to keep track. So what actually are cryptocorns and where do they come from?
The name cryptocorns was created by Ian King to describe a change in the way brilliant entrepreneurs go about finding money to build their projects and a way to identify great investment opportunities.
Ian King is a recognized crypto expert having enjoyed a high profile trading career that spans decades on Wall Street. We’ll have more about that in a bit.
Cryptocorns have their roots both in venture capital and cryptocurrencies. Cryptocorns represent the brightest and most promising crypto projects. These are the opportunities investors that create great and lasting wealth. Before digging into cryptocorns further, let’s take a moment to understand how cryptocorns got started.
Ian King recently discussed the issue of cryptocorns. The article was published by Banyan Hill, which is known for its insightful investment advice from skilled advisers. Ian King is a well-known entrepreneur and a prominent cryptocurrency trader. Let’s take a look behind his thinking.
The Private World of Unicorns
Before there were cryptocorns there were unicorns. The venture capital community was the first to dub a startup company that exceeded a $1 billion valuation as unicorns. In the past these unicorns were quite rare. Today they are becoming more common. More than 275 companies across the globe fit the Uncorn description. Some of them are well-known entities such as Pinterest and Uber. One of the more recent Unicorns you may have run across is Telegram.
As a whole, the unicorn companies boast a market valuation that exceeds $965 billion, and the aggregate investment amount is just $200 billion. That reflects about a 400 percent return. If you wonder why you were never offered an opportunity to invest, here is the reason why.
In the past these investments were limited to individuals either with a high net worth or exclusively to venture capitalists.
Take the case of Facebook. Inc. (Nasdaq: FB). The shares have risen 355% since its 2012 initial public offering (IPO). But early-stage investors enjoyed gains of up to 60,000% before Facebook ever reached public hands.
Uber now commands a $48 billion private market valuation. This is 12,000 times higher than its original valuation of $4 million. But not one cent of this increase in value has reached the public. Rather, all the gains have accrued to Silicon Valley insiders and large institutions.
Cryptocorns Open Doors For Everybody
To keep things clear then, cryptocorns are unicorns with one important twist. Cryptocorns aren’t restricted to just the rich and famous. They are for everyone. With cryptocorns everybody has an equal shot of finding the next Uber, Amazon or Google. To find your own comfort level with identifying cryptocorns, it helps to understand a bit about their building blocks.
Blockchains For Everyone
At the core of virtually every cryptocurrency is a technology that has been around for many years known as blockchain. The term is often used in the singular sense as if there is one and only one blockchain. In reality, there is very little unique and nothing proprietary to a blockchain. Anyone can create a blockchain.
If you visualize an Excel spreadsheet then you see that a blockchain is little more than a digital box to record and securely store data.
Blockchains get their unique value when developers from the likes of Bitcoin, Ethereum, Ripple, Litecoin and others create applications for blockchains. This is where the magic starts. This is what excites investors and drives prices higher.
No matter which generation a coin, altcoin or ICO project fits, each shares a common purpose: to solve problems, improve lives and save billions along the way.
Since Bitcoin was the first it was dubbed the original coin, sometimes also known as Gen I crypto. Others like Ethereum, Ripple and Litecoin positioned themselves as alternatives to Bitcoin gaining the moniker altcoins or Gen II. The latest round of projects commonly built on the Ethereum platform and financed through an Initial Coin Offering have come to be known as Gen III. It is in this Gen III group where potential cryptocorns will be found.
No matter which generation a coin, altcoin or ICO project fits, each shares a common purpose: to solve problems, improve lives and save billions along the way.
Solving Real World Problems
Here is just one real life example for the role of cryptocurrencies. Today it takes as much as three days for a supplier in Italy to receive payment from a customer in America. Banks charge billions of dollars in commissions each and every year, year after year. Imagine if you were that Italian supplier and could get paid instantly at little or no cost whatsoever. It would change your life.
The value of global GDP is more than $100 trillion annually. That includes literally dozens of trillions in foreign trade that require currency exchange 24/7. Cutting the time of settlement from three days to an hour or less could easily save over $1 trillion.
This is just one out of tens of thousands of possibilities that lead us to Ian King’s cryptocorns. If you ever wondered why anyone would pay $19,000 for just one Bitcoin, this is just one of many reasons.
Source of Cryptocorns
Now that you are comfortable with cryptocorns being unicorns in the cryptocurrency world, where can they be found? We are talking about the best, biggest and most promising crypto projects. Over 90% of these companies use the software platform of just two companies, so lets take a moment to review these familiar names.
Bitcoin is the original and best known cryptocurrency. However, there are many other blockchain technology applications. Most news agencies that have been talking about Bitcoin value and blockchain technology have been focusing on the 1,485 percent gain of the most popular cryptocurrency during the past year.
These days, the total value of Bitcoin is hovering around $150 billion. That’s pretty amazing considering just a few years ago Bitcoin was just a concept.
Bitcoin serves two principal functions. It serves as a medium of exchange and a storehouse of value: in other words as an investment. Bitcoin’s acceptance around the world has been slow but steady with more than 10,000 merchants accepting this digital currency.
Ethereum has been an even more impressive crypto providing investors with a 12,822 percent return during the previously mentioned growth period of Bitcoin. The Ethereum currency called Ether is the second largest crypto sporting a value of about $50 billion.
Ethereum founder Vitalik Buterin was also a co-founder of Bitcoin. In 2015 he spun himself off and formed Ethereum. Vitalik’s was not out to create a medium of exchange like Bitcoin, but an open source platform to enable other startups to build applications on top of the Ethereum platform.
For Ethereum investors, this creates a massive and powerful interoperable ecosystem that creates a geometric progression in demand for Ether. For would be cryptocorns this creates an enormous saving of time and development costs. This has proven such a winning combination that 8 out of every 10-startup crypto companies choose the Ethereum platform.
Between Bitcoin and Ethereum rests well over half the value of all crypto and the source of most cryptocorn opportunities.
Litecoin is actually a branch (called a fork) of Bitcoin. It came into existence in October 2011 with one important benefit over Bitcoin: it was measurably faster than Bitcoin.
In technology, as elsewhere, speed holds great value. When investors got a good taste for Litecoin, it doubled in value in just a single month reaching $1 billion in value by the end of 2013. In May of last year Litecoin completed a transaction from Zurich to San Francisco in less than one second. Speed is what explains Litecoin’s current value of approximately $ 10 billion.
Ripple and its coin XRP is the third in market capitalization behind Bitcoin and Ethereum. In the tech world, XRP is called a decentralized digital asset, which means any one single owner does not control it. This is a common practice among cryptocurrencies. What makes Ripple different are two powerful forces.
The XRP network has the ability to settle payments in 3-4 seconds and that is faster than Bitcoin. Secondly, the global banking industry has been Ripples target market. Giant financial institutions such as UBS as well as UniCredit and more recently Santander have adopted Ripples settlement infrastructure technology.
The three largest players in the crypto sweepstakes offer distinct choices for investors so it is not necessary to assume that Ethereum must fail in order for Bitcoin or Ripple to succeed. When markets measure in the trillions there is plenty of room for great ideas.
Crypto Staying Power
This all signals that cryptocurrencies are here to stay, and there is still plenty of money waiting on the sidelines for those who jump in now.
Wall Street is just now starting to get involved. The Chicago Mercantile Exchange (CME) and the Chicago Board Options Exchange (CBOE) launched Bitcoin futures in December.
Other coins such as Ether will be the next under consideration. With the total value of the crypto market in excess of $300 billion this is a natural attraction for Wall Street. Having a futures market for these assets reduces risk.
But there is an even larger carrot that Wall Street is aiming to grab: trading in crypto. This comes at a time when traditional sources of Wall Street business have become harder to come by. Within the course of the coming year, you can expect a number of big name firms getting involved.
Today there are over 500 separate cryptocurrency exchanges around the world according to trade sources. Little wonder then that Wall Street king pin Goldman Sachs has decided to launch an institutional trading desk. Once this becomes a full-blown reality, others will follow.
These moves not only help the individual investor but send a loud signal that cryptocurrencies have become a mainstream asset class.
Lots Of Cryptocorn Opportunities
The supply of companies employing blockchain technologies is smaller than the demand. On a daily basis, the financial media features headlines about IBM or some other Fortune 500 company praising the virtues of blockchain technology and announcing their own projects. There is a very good reason behind these moves; they have the power to wring billions of dollars out of corporate costs.
Little wonder than that this has helped create the financial mania of the past couple of years. Ian King notes that there are currently well more than 40 block chain projects with a valuation over $1 billion. In comparison with last year’s statistics, this is remarkable. Last year it took 10 of the largest projects to crack the $1 billion barrier.
There is speculation about investors trying to work their way onto the ground floor, which is causing a spike in prices. Such a drastic increase has never happened before. This is one of the forces leading to the creation of cryptocorns.
Ian King said that there are more than 40 blockchain projects. When combined, their total valuation is about $1 billion. In comparison with last year’s statistics, this is remarkable because of how Bitcoin stood alone in the cryptocorn ring then. As Litecoin, Ripple, Ethereum and other cryptocurrencies grew, Bitcoin’s market share fell from 90 percent to under 35 percent during that short period.
What Makes Ian King The Expert on Crypto?
Events of the last few years have spawned lots of so called cryptocurrency experts. In this crowd Ian King stands out. The fact that Ian has been an extraordinarily successful trader and investor for decades is just the beginning. He has been associated with some of the largest and most successful firms on the Street.
After starting his career on the famous Mortgage Bond trading desk at Salomon Brothers, Ian moved over to industry giant Citigroup where he worked in Credit Derivative origination. During the following decade Ian King served as the head trader with Peahi Capital, a NYC-based long/short equity fund.
With more than 20 years of experience analyzing markets and making successful trades, Ian King is eager to share his knowledge with others. He is a top contributor of trading topics on Investopedia, and he made a special program to help cryptocurrency investors overcome the complexities of alternative currencies. Ian King said in his article that he was not surprised to see investors anxiously waiting for the next moonshot’s phase to start.
Ian’s approach to cryptocurrencies was solidified by his love of reading and near obsession with understanding global monetary economics. Books written by Adam Smith, John Maynard Keynes, Milton Friedman, Friedrich Hayek and many other authoritative sources are daily sources of investment insight.
As someone who is obsessed with monetary economics and who has worked with derivatives, hedge funds and more, Ian King has plenty of valuable knowledge to help form his predictions.
Ian’s predictions are widely read and respected by virtually any investor who appreciates how his Peahi Capital produced a total return of 339% during the financial crisis of 2008.
He was welcomed to Banyan Hill Publishing in 2017. His weekly contributions help readers stay ahead of the newest crypto developments. In addition to his weekly advice, he is working on creating a crypto trading course for Banyan Hill Publishing’s readers.
He plans to launch it later in 2018, for more information visit https://cryptoprofitsummit.com/.
Where The Crypto Boom Goes From Here
The current market for altcoins and cryptocurrencies in general bears striking similarity to the dot-com bubble from the 1990’s. As it was with the Internet, there will be some huge winners but also, some duds along the way.
Back in those early days of the dot-com explosion, a young man with an infectious laugh placed his bet on being able to make money-selling books online. As we all know that infectious laugh belongs to Amazon founder Jeff Bezos. Today Amazon is one of the most valuable companies in the world and Jeff is laughing all the way to the bank as one of the richest men in the world.
One of the lessons here is the importance of time. To reach it current exalted status, took Amazon about 20 years. At the start the idea of selling something as unexciting as books seemed to many observers as nothing short of absurd.
Nearly 70% of all monetary transactions that take place today are done digitally. Cryptocurrencies are simply another digital format.
The idea of paying for something in cryptocurrencies is an equally strange and troubling thought to many people. Part of this is due to the inherent volatility of this new asset class. However, over time this will change as crypto exchanges are consolidated and volatility is reduced.
To facilitate cyptocurrencies of all types as a medium of exchange, there are numerous altcoin projects intended to make buying a cheeseburger at McDonald’s with a cryptocurrency as simple as using a debit card.
Keep in mind; nearly 70% of all monetary transactions that take place today are done digitally. Cryptocurrencies are simply another digital format. When you think of a person in business or simply traveling abroad, does it really make sense to carry a pocket full of dollars and another pocket of Euros? Of course that would be silly and probably risky.
This is where digital currencies provide value. There are already numerous digital currencies. The US dollar, the Euro and the British Pound are just three. At some point in the future cryptos like Bitcoin, Ether, Ripple or Litecoin will be others.
Today’s cryptocorns are already working on ways to make this a reality. And this is not the only path to acceptance. As earlier noted, over 10,000 merchants already accept Bitcoin in payment. These include a few major online companies like Overstock.com. However, the day that it is announced that Amazon begins accepting Bitcoin will be a world changing moment. That day may not be so far away.
While all this transformation is taking place a better way to look at cryptocurrencies is an alternative place to store money. Traditionally, you have had stocks, bonds and commodities. Asset classes like real estate and collectables like art and vintage autos have provided sizable returns especially in periods of great economic prosperity. However, most of these suffer from illiquidity and this is not a problem in the crypto world.