My friend Gabe Weis is not a famous tech CEO or VC, but he’s still the key to an outstanding profit opportunity today.
You see, he’s a very talented contemporary painter focused on modern cubist faces, and highly successful to boot.
This rising star already has more than 67,000 followers on Instagram, where he often sells his paintings through direct messages.
In less than three years, my wife and I have made at least 500% on one of his works.
A big reason for that massive gain is the fact that Gabe is a very popular seller of NFTs.
That’s short for nonfungible tokens, a type of digital asset. NFTs are turning the art market on its ear after a digital package recently sold at auction for a cool $69.3 million.
There’s an Art to Blockchain
Now then, to say my wife and I are passionate art collectors is an understatement.
It seems like every inch of our home near Silicon Valley is covered with art. Before the pandemic, we’d visit more than 100 studios and galleries a year.
That’s how we came across Gabe’s work. We met him at his home, hit it off right away, and bought one of his works, a version of which is now a very popular NFT.
And am I ever glad we bought that painting. We haven’t had it appraised lately but based partly on Gabe’s success with NFTs we’ve seen the value of these paintings shoot through the roof.
The piece is probably worth as much as $5,000 today, a hefty jump from the $1,000 we paid for it.
For those of you who are not familiar with the burgeoning NFT world, here’s a quick overview.
Think of an NFT as the digital equivalent of the piece of paper that is the title to your car. Both are records that state who owns a specific item.
For NFTs, those items are digital – images, videos, tweets, and so on. For titles of ownership, those items are cars, houses, etc.
Now, paper-based records come with lots of downsides. Most importantly, given enough time and money, any paper-based record can be forged for altered.
In the art world, where the right piece can go for millions, art thieves and forgers have plenty of incentive to alter proofs of ownership and authenticity.
NFTs make this mathematically impossible. See, an NFT is a piece of data stored and certified by the global network of computers we call the blockchain.
Each computer keeps every other computer honest and makes sure there’s only ever one NFT of its kind, making it virtually impossible that NFTs are altered, forged, or recreated.
In short, NFTs leverage the blockchain to become incorruptible proofs of ownership and authenticity.
NFTs hit the big time back in March when the NFT marking ownership of a series of 5,000 digital images sold for a whopping $69.3 million.
To say this shook up the rarified art world would be an understatement.
Created by Mike Winkelmann, who goes by Beeple, the digital image went up for a two-week auction with a starting bid of just $100.
Called “Everydays – The First 5000 Days,” the art piece is a collage of every image, one a day, that Beeple has created since 2007.
By setting the starting bid at just $100, Christie’s, the storied art auction house that organized the sale, clearly wasn’t expecting much.
They certainly weren’t expecting Beeple’s NFT to become the highest-priced sale of digital art ever.
Now, as I mentioned earlier, NFTs run on the blockchain. Specifically, they run on the Ethereum blockchain.
While Bitcoin gets all the publicity whenever blockchain or cryptocurrencies are mentioned, Ethereum deserves much more attention. It’s simply a much better blockchain.
See, Ethereum was designed for “smart contracts” – digital contracts with the terms and conditions built-in. That way, the blockchain not only automatically verifies which parties agreed to the deal but also automatically and securely verifies when the conditions of the deal have been met.
This allows for things like NFTs to operate on Ethereum. It’s also the blockchain of choice for dozens of “altcoins.”
But don’t worry if you’re not on a crypto exchange and have no intention of dealing with such complex operations.
Because there’s a much easier way to profit from Ethereum.
Two ways, actually – and both with the same great fintech leader…
Cryptocurrency Made Easy
I’m talking about none other than PayPal Holdings Inc. (PYPL). It’s morphed from its days handling only online payments for eBay Inc. (EBAY), to become a mainstay in money transfers, mobile payments, and much more.
And just recently, PayPal launched its cryptocurrency platform with support for buying and selling four cryptocurrencies, including Ethereum.
I’ve tested the platform several times recently and found it very easy to use. There are some downsides, however,
It’s not a true crypto exchange. So, you don’t get tools like stop losses and limit orders. You’re trading robust functionality for ease of use.
It’s an easy way for retail investors to quickly get some crypto exposure.
And that makes PayPal a great crypto “twofer.” You can buy either cryptos or the stock, or both.
Make no mistake. PayPal is now cooking with rocket fuel.
In its most recent quarter, PayPal’s earnings were a blowout. It reported per-share earnings of $1.22, easily beating forecasts of $1.01.
At the rate it’s growing, PayPal is set to double its per-share earnings in just over 2.5 years.
That means PayPal is an excellent way to play cryptos with a stock that can greatly accelerate your net worth.
You can accelerate that net worth even further using cryptocurrencies even more specialized than Bitcoin or Ethereum, but getting it right can take a bit of specialized guidance. But I talk more about that right here.
Cheers and good investing,
Michael A. Robinson