adventtr/E+ via Getty Images
Editor’s Note: This article is meant to introduce Mike Fay’s Marketplace service, BlockChain Reaction
It’s my pleasure to announce the launch of BlockChain Reaction. In this new Seeking Alpha marketplace, subscribers will find hidden gem cryptocurrencies and blockchain-based assets. Believe it or not, even crypto has internal contrarians and you can count me as one of them. While many buyers of tokens and cryptocurrencies fall victim to chasing hype and “number go up” strategies, my starting point is utility. If the asset doesn’t address a problem, it’s not going to be one of my Top Token Ideas.
For a very limited time, BlockChain Reaction subscribers can lock in a permanent first adopter rate of $299 per year for complete access. This is a 25% discount from the standard rate of $399 annually and a 50% discount from the regular monthly price.
1500 years ago, everybody “knew” that the earth was the center of the universe. 500 years ago, everybody “knew” that the earth was flat. And 15 minutes ago, you “knew” that humans were alone on this planet. Imagine what you’ll “know” tomorrow.
That quote is from Agent K in the movie Men In Black. The character was portrayed by Tommy Lee Jones back in 1997 and that scene is one of my favorites from the movie. It’s a great moment in the film because it challenges what we currently recognize as groupthink. In addition to that, it turns the classic old vs young open-mindedness paradigm on its head. K, the older agent, was challenging his much younger counterpart to question his accepted ideas. Twenty years after that movie was released, Bitcoin (BTC-USD) went mainstream in a big way.
Back in 2017 after Bitcoin had eclipsed $15,000 I was imploring anyone who would listen to stay away from the little-known cryptocurrency that had been gaining notoriety. I vividly remember talking with a friend who was mining crypto at the time. He explained all the ways in which fiat currency was a scam and how the monetary system was going to fall apart; a sentiment that, as a “Goldbug,” I was deeply sympathetic to. My response:
I get all that. Bitcoin is still in a bubble.
I remember actually liking Bitcoin as an idea at the time but still taking a devil’s advocate approach to the conversation to test the resilience of my friend’s thesis. One of the biggest arguments against Bitcoin that I still grapple with to this day is the level of blockchains that can be created. What good is a supply cap on crypto when countless cryptos can exist? His response:
99% of the cryptocurrencies that exist today will not survive. Bitcoin is different because it’s truly decentralized and the network effect hasn’t been duplicated.
Fair enough. I still waited until the bubble unraveled. Later in 2018, I started buying Bitcoin. During the depths of the “crypto winter” that followed the 2017 bubble, I started looking at some of the other cryptos and tokens as well. I’m now convinced that blockchain technology will change the way many businesses and industries operate. And if that plays out the way I believe it will, it has to change the way I invest as well.
While I was quietly scaling into a crypto portfolio, I was also working as a research analyst for a large media company. I spent about five years in that role and developed a reputation for closing business that account executives struggled to close by themselves. What made my approach in those meetings different was the same thing that drives my investment philosophy now.
I always tried to justify the deal with data. I transparently told each client or prospect that selling solutions that don’t work helps nobody. If I wouldn’t do it with my own money I’d never recommend you do it with yours. A marketing campaign that doesn’t result in incremental sales isn’t much different from investment research that doesn’t beat the benchmark.
What you can expect from BlockChain Reaction is investment research that does help you beat the benchmark – in crypto, that’s Bitcoin. You can expect research that doesn’t call every chain, token, or coin a “buy.” Because truth be told, most of them aren’t good buys. When you’re attracted to alternative assets like gold or crypto, there’s a certain level of contrarianism that one might feel as a core ethos. That’s what you can expect out of BlockChain Reaction.
Helping people make better decisions with capital is what I’ve been doing outside of the investment field for years. Now I want to do it for the crypto investment community as well. The ideas you’ll find in BlockChain Reaction are different from those I provide the public Seeking Alpha site. Most of the Top Token Ideas in this marketplace service aren’t going to have top 50 market capitalizations. But they’re ideas that I feel deserve to be in well diversified cryptocurrency portfolios whether the larger crypto crowd agrees or not.
Most cryptocurrency advocates don’t like privacy coins. I don’t care. Zcash (ZEC-USD) is one of the few cryptos I’ve called a buy on Seeking Alpha and it’s beating Bitcoin year to date. Over the last year, I’ve covered more crypto assets for Seeking Alpha than equities. Would it surprise you to know that out of 11 blockchain-based assets, the majority of my unique crypto recommendations have not been buys? It’s true. This recent sell call hopefully saved NFT enthusiasts from following the crowd into a Buzzsaw:
IMTE Strong Sell
You are not going to find buy calls on assets or equities that are just riding a wave of hype in BlockChain Reaction. You’re going to find research based on analysis with a multi-year approach to positioning.
The crypto crash the market has experienced this month is probably one of the most necessary events in finance in a very long time. There are a lot of reasons for it, but the market was entirely out of control. This reset was probably overdue and should be viewed as an opportunity. Right now, bad investments are being purged. The LUNA blowup, the breakdown of the “ETH killers,” the underperformance of dog meme coins, and the insanity of the “apes.” Oh, let’s not forget the obvious scams; there are plenty of those. The day of reckoning for many of the doomed crypto projects is likely upon us. This is a good thing.
There are a lot of coins and tokens that aren’t going to survive crypto winter because they shouldn’t. But just as during the fallout of the dot com bubble pop, this crypto crash results in babies getting thrown out with the bathwater. Apple (AAPL) was down 80% after the dot com bubble. Amazon (AMZN) was down over 90%. The rest is history. Buyers of those stocks in 2001 have done spectacularly. This will happen again and many of the investments that outperform the broad market will be in the blockchain space.
There are currently close to 20,000 crypto assets. If just 50 of them are still here in 20 years, it would mean over 99% are going to fail. Just as I was told back in 2017. My goal is to find the tokens and coins that won’t fail. Maybe you believe this entire asset class is a scam that will end in tears for all crypto holders. Maybe you believe these are innovative assets that will change the way the world works. Maybe you’re somewhere in between. Whichever stance you adopt, you are welcome to join. BlockChain Reaction is for anyone who wants to challenge their own thinking on blockchain-based assets.
There are several different regular content pieces that will only be available to BlockChain Reaction subscribers.
Still not convinced? Try a free two week trial and see for yourself. If it’s not a fit for you, you’ll know. But if you already know BlockChain Reaction will provide you value, lock in this very special introductory offer for the rest of your subscription. In two weeks, my service is going to cost $49.99 per month or $399 for an annual commitment. From now until 4pm on June 7th, you can lock in that annual commitment at just $299 every year; a 25% discount from the regular annual price and 50% off the standard monthly rate. Don’t miss out.
I’ve served as a client-focused research analyst for several years. In that time, I’ve also managed my own investment portfolio and been a contributor on Seeking Alpha since 2019. I believe the right investments made in the cryptocurrency space over the next few years will lead to portfolio defining returns down the line. The same way buying certain dot com bubble stocks in 2001 have become some of the best long term investments in history. BlockChain Reaction is the service that aims to find those top ideas for the next generation of investors. Join today.
If you’re reading this via Seeking Alpha’s mobile app, to try this service right now go to seekingalpha.com and enter BlockChain Reaction in the site search to visit my Marketplace Service checkout page.
This article was written by
5 years as a media research analyst. Operator of Heretic Speculator newsletter where I share additional thoughts on finance with more of a social backdrop.
Disclosure: I/we have a beneficial long position in the shares of BTC-USD, ZEC-USD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Additional disclosure: I’m not an investment advisor. Everything I share is for informational purposes. Ultimately you have to decide if the investments that I make personally are also right for you. Cryptocurrencies and other blockchain-based digital assets are highly speculative instruments that could result in total loss of capital. As with any investment, know your own risk tolerance and allocate investment capital sensibly.