Justin's note: If you’ve been reading the Dispatch over the last few months, you know that there’s a huge opportunity right now in cryptocurrencies. And no one knows more about the space than our friends over at the Palm Beach Research Group.
Today, I’m sharing an urgent update from Palm Beach Daily analyst Nick Rokke. As you’ll see, a massive buying opportunity is shaping up—and now is the time to take advantage…
By Nick Rokke, analyst, The Palm Beach Daily
The year was 2012. And Baidu—China’s Google—was struggling.
The search engine was losing market share to Google. Over the past year, Google went from 30% market share to 42%.
The Chinese were finding Google more trustworthy.
That’s because Baidu was coming off a couple scandals.
In 2009, the government accused Baidu of knowingly allowing fraudulent advertisements. And in 2011, officials again caught the company skirting advertising laws.
By July 2011, the company’s stock started a 50% decline.
As troublesome as this was for Baidu, it was worse for the Chinese government.
The Chinese Communist Party often censors what its citizens can read online. But Google refused to censor its search results.
In November 2012, China banned Google searches. The Communist Party said it wanted to prevent the “spread of harmful information.”
That was just a fancy term for censorship. But it was also a profit grab…
Most of Google’s 42% market share went straight to Baidu. And the Chinese search engine took off.
For those who watch China, this is a familiar pattern…
A foreign tech company enters the country and breaks ground… only to see China ban or restrict the technology. That paves the way for a domestic champion to step in.
China blocked social media giant Facebook to allow domestic rival Tencent to flourish.
And China never allowed Amazon or eBay to gain footholds on the mainland. That gave homegrown Alibaba space to dominate the online retail market.
We’re seeing the same thing play out in the cryptocurrency space. Today, I’ll show you how to take advantage of this trend.
Last month we wrote about China’s ban on initial coin offerings (ICOs) and cryptocurrency exchanges. Most of these ICO platforms are outside of China.
[ICOs are the cryptocurrency equivalent to initial public offerings (IPOs) held by private companies.]
That made September a bad month for cryptos. Bitcoin dropped 40% on the news (it has since recovered those losses).
But at the Daily, we look past the mainstream news… and dig deeper to see what’s really going on. That’s why I reached out to our in-house crypto expert Teeka Tiwari.
No one in the business knows more about cryptocurrencies than Teeka.
Over the past year, he’s crossed six time zones… visited six cities on two continents… and spent hundreds of man-hours researching cryptocurrencies.
I asked Teeka whether China’s current crypto crackdown was a long-term threat… or just history repeating itself.
Here’s what Teeka told me:
I believe China’s action to be temporary; out of national self-interest. Again and again, China has proven that it will kick out Western technology companies in favor of homegrown companies. That’s why the five largest tech companies in China are Alibaba, Tencent, Baidu, JD.com, and NetEase.
Google, Facebook, Amazon, Netflix, and Apple don’t even rate there.
He went on…
China won’t let something as big as the blockchain go to a foreign competitor. Right now, platforms outside of China are dominating ICOs. If they don’t get back in the market soon, China will lose out on this lucrative market.
Teeka told me that officials inside China say the ban will be temporary. The government just needs some time to regulate the industry.
When China eventually repeals the ban, it will open space for homegrown cryptocurrencies to take off. And they’ll flourish… just like Alibaba, Tencent, and Baidu.
To be ready for this buying opportunity, you need to have some bitcoin on hand. You’ll need it to buy most other cryptocurrencies, including those based in China.
When China allows exchanges to reopen, you’ll see a boom in demand for bitcoin that will push the price to new highs…
Nick Rokke, CFA
Analyst, The Palm Beach Daily
Justin’s note: If you’d like to learn more about cryptos, I suggest you check out Teeka’s work. He spent all of last year traveling the globe, meeting cryptocurrency insiders, and learning everything he could about the booming crypto market. And it paid off—because he recently shared a play with his readers that shot up 27,166% in 6 months.
Teeka has just put the final touches on what he calls the Bitcoin Millionaire Master Plan, a crash course on cryptos that works even for complete beginners. Here’s the entire story on the Master Plan, including how you can get started for free…