This Is How Your Grandchildren Will Pay for Things
It's a story that's grown into legend.
In 2010, a software engineer made the first-ever purchase using what was then a little-known, experimental form of currency.
He used it to buy some pizzas, valued at less than $40 — a completely mundane purchase that he probably didn't give much thought to at the time.
Just a technological curiosity, nothing more than a series of characters, actually, that could be traded in for real, edible, piping-hot food.
What a concept it was at the time.
Seven years later, that technological curiosity has grown into one of the biggest stories in finance, right along with the value of the digital currency itself.
How much did it grow?
Well, let's put it this way: Since that purchase was executed, the electronic money used in the transaction has gone from about $0.06 to over $5,000.
Hands Down the Fastest-Growing Investment Ever
That's a gain of 8,300,000%, which translates into 83,000x the starting value — and that's at $5,000.
These digital coins, which you know as bitcoins, have exceeded the $5,000 mark in recent weeks and are now approaching $5,500 a piece.
And, in case you're wondering, that software engineer who was the first person ever to exchange the digital coins for commercial merchandise is kicking himself right now.
Because the bitcoins he blew on those pizzas seven years ago are now worth more than $20 million.
That could buy a lot of pizza today... or a lot of just about anything else.
Bitcoin and other mainstream digital currencies like Ethereum — this year's big upstart — now command market capitalizations in the tens of billions.
Which means one thing: their time of radical value growth is now behind them.
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It's All in the Market Capitalization
Just like major companies such as Apple (NASDAQ: AAPL) or Facebook (NASDAQ: FB), whose multibillion-dollar valuations make it hard for them to keep expanding, mainstream digital currencies are all heading for inevitable valuation plateaus.
Which is why investors interested in recapturing meteoric growth like the kind exhibited by Bitcoin over the last several years have to turn to another category of digital currency.
With market capitalizations only in the millions, there is now a new generation of digital currencies making its way in the market.
Based on the same underlying blockchain technology that gives all bitcoins inherent value (something the dollar lost when it was taken off the gold standard back during the Nixon administration), this new guard of digital currencies takes the concept to the next level.
All in all, Bitcoin has paved the way for more than 800 digital currencies... which makes the task of an investor daunting to say the least.
However, it's a task well worth undertaking.
Because in the next few years, that field of 800 will be cut down to just a handful as the market stabilizes and standardizes.
It's happened before, about 100 years ago, when hundreds of automobile brands waged war on each other over a rapidly growing rise in demand.
First There Were Many... Then There Were Few... Here Are Two of Them
Eventually only a few were left standing — the very same carmakers we know today.
The same scenario played out many times since then, in a variety of industries and product categories.
The path of the digital currencies will be similar as a vast majority are wiped out, leaving just a few to dominate.
Bitcoin will be among these, but there will be others — a few of them are almost unknown today — that will also rise above the crowd and achieve mass adoption.
I know this because I've isolated two of these digital currencies from the field of competitors.
They're among the smallest, and yet they show the same traits and patterns as Bitcoin did before them.
And, like the early bitcoins, they trade for just pennies today, meaning the opportunity for dramatic growth still lies in the future.
Think of these as early-stage startups, only the benefit here is that the market is proven, as is the technology itself.
As they transition from startup to nationally and then globally recognized brand, the potential profit that a select few investors will reap is hard to imagine.
Using Bitcoin as a model, however, isn't a bad start.
This information is too valuable to keep secret, so the detailed report I compiled on this developing story is now available for you to see firsthand.
Get it right here. I won't keep it around for too much longer.
Fortune favors the bold,
Coming to us from an already impressive career as an independent trader and private investor, Alex's specialty is in the often misunderstood but highly profitable development-stage microcap sector. Focusing on young, aggressive, innovative biotech and technology firms from the U.S. and Canada, Alex has built a track record most Wall Street hedge funders would envy. Alex contributes his thoughts and insights regularly to Wealth Daily. To learn more about Alex, click here.
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