As the crypto markets fall, now is the time to be re-thinking your strategy.
Now is not the time to be looking at the thousands upon thousands of altcoins, thinking you're
going to find the next 100x.
Those days have passed but like a thorn in your side, Chico Crypto is here almost everyday…through
the ups and the downs.
Well let’s try to keep you up in these down markets….because it’s time for Chico Crypto!!
Yes, if you think playing the shitcoin game in these turbulent markets is the right strategy.
You have another thing coming.
Now is the time to be looking at the blue chips, those that are going to be around come
the next cycle.
Many of these altcoins who literally have no use case are going to fade like dust in
the wind…
Now…I’m not saying there isn’t a time to speculate on the low caps but you need
understand how the money flow in crypto works.
Money flows into crypto in a pattern.
First their is fiat, which goes into usually the easiest and most accessible to buy, Bitcoin
and large caps.
Eventually the money will flow into mid caps and low caps, but this is when the markets
are hot and we have an alt season.
When the markets are up the fiat flow into crypto is massive, of course money will trickle
down to these mid and low caps, especially as the hype is strong and people are learning
about crypto and becoming more knowledgeable on how to use the tools of the markets
When the markets are down, the money flow dries up and of the little amount of fiat
money coming into the markets.
It’s going to flow into Bitcoin and some larger caps. Little to none flows down to
mid and small caps.
Especially as the hype dies down and people aren’t as excited to learn.
Although that tiny amount of money flow going into Bitcoin and the large caps is the smart
money.
They know the cycle of crypto, they know they will be able to score rock bottom prices on
some of the futures most valuable assets…and for the rest of the episode I’m going to
explain this.
Beginning with Bitcoin.
Now owning one Bitcoin should be a goal of every crypto investor.
There will only be a max 21 million BTC, which means only 21 million people in this world
can own a whole Bitcoin.
And the President of El Salvador, Nayib Bukele, explained this in a tweet perfectly.
He said “There are more than 50 million millionaires in the world.
Imagine when each one of them decides they should own at least one BTC.
But there will ever be only 21 million Bitcoin.
Not enough for even half of them.A gigantic price increase is just a matter of time.
In my opinion, owning a Bitcoin will be seen as a power symbol of the wealthy elite.
Just like owning a multi million dollar mansion or that sports supercar.
The limited supply of Bitcoin of 21 million, doesn’t allow even all the millionaires
in the world to own a full Bitcoin…and they’re going to want to…which alone will push up
the price…
Now I’m sure when Bitcoin was at it’s peak of over 69k, owning a full Bitcoin seemed
out of grasp for most people.
But now that Bitcoin is below $38k…a full Bitcoin doesn’t seem so far out of reach…
Per example…let’s just say we are going into a bear market where Bitcoin will reach
back down to 23k over the next 6 months.
And we wouldn’t reach back up to 38k until 6 more months later..
Let just say you bit the bullet and dollar cost averaged 3k of your savings or income
into Bitcoin over this time each month.
After month 1, Bitcoin at 38k…your 3000 dollars put in would own 7.9 percent of Bitcoin
After month 2, Bitcoin at 35k….that 3000 dollar put in would net you 8.6 percent of
Bitcoin.
Shoot after 2 months you already own 16.5 percent of a BTC!!
Steadily on your way to a full one.
After month 3, Bitcoin at 32k, the 3000 dollars would get you about 9.4 percent of a BTC.
You are so close to a quarter of a BTC.
After month 4, Bitcoin at 29k, the 3000 dollars would get you a full 10.3 percent of a bitcoin.
You already have over a third of one.
After month 5 Bitcoin at 26k, your 3 grand investment would net you 11.5 percent of a
coin.
After month 6 Bitcoin at 23k, your 3000 dollars would net you 13 percent of a BTC.
In just 6 months, of dollar cost averaging you could possibly own over 60 percent of
a bitcoin…thus if you kept up the same strategy on the way back up to 38k, the same percentages
would apply and over the next 6 months, totalling 1 year you would own over 1.2 of a BTC.
Now I know a lot of you are going to say, but Tyler I don’t have an extra 3 grand
to throw at BTC per month.
That’s just out of my limits….
Well you don’t have to own a full BTC to be in the top.
Now let’s just take for example Satoshi’s vision that Bitcoin is a globally adopted
asset.
Everyone in the world uses it.
The world population clock estimates that there are over 7.928 billion people in this
world.
That means if BTC was evenly distributed across the world, 21 million dividends by 7.928 billion,
at max the most a single person could own would be just .00264 of a BTC aka just over
2 tenths of a percent of one.
Although not every single person in the world is going to use BTC…so how much based on
bitcoin adoption.
Well in 2020, based on the number of Bitcoin users and the supply, the average Bitcoin
holding was just .2 of a BTC aka 20 percent of one.
Based on the adoption curve by 2030 the number will drop significantly, down to .02 just
2 percent of one.
So by holding a fifth of a bitcoin today, in 2022 you are already above average…and
by 2030, if you hold that fifth, you will be way above average!!
But how much to enter the elite, the top 1 percent of Bitcoin holders worldwide.
Do you need to hold a full BTC??
Well no actually…all the way back in the 2018 Bear market a Steven Lee @moneyball tweeted
this “ If you own 0.28 BTC and HODL, you can be certain no more than 1% of the current
world's population can EVER own more BTC than you.
A modest investment of $1,830 today can ensure you are a 1%er in a future Bitcoin world.”
.28 of BTC just over a quarter will ensure you are in the top 1 percent in a future Bitcoin
world.
Back in 2018 it was a modest investment of $1830 bucks, today that is a higher, yet still
modest investment of $10528.
Remember, you can DCA and become one of the top 1 percent of Bitcoin holders worldwide.
You don’t have to make that entire investment right now, but you can make it over the span
of a year, and most likely hit your goals.
Although there are some other goals to be hit as a bitcoin holder.
Of course owning 1 is a goal I think every crypto investor should strive for…but if
you hit 1 BTC, you earn yourself a place in a special club…the 21 million club.
You own 1, of the 21 million of the Bitcoin supply.
As we can see from this reddit post, it took this investor 3 years to hit the 21 million
club and own a full BTC.
Although if we read his post about his biggest regret and lesson he said “(BIGGEST LESSON)
It was 2019, I had nothing in crypto and I watched Bitcoin bottom at $3,000.
At that time I had around $3,000 of savings and was waiting to buy, I thought it was going
to go lower....
I was wrong, so wrong...
I was greedy and wanted more, I thought I could sneak in a bit more than 1 Bitcoin but
looking back now, not being in the market was dumb (A lesson for some)...
He didn’t DCA dollar cost average when the markets were down, and was looking to time
the markets.
He didn’t and watched the price rebound…If he would have DCA’d he could have got 1
BTC much faster!
Now there is another club that even I’m not a part of…yet!!
The 1 million club, this is when you own 21 bitcoin, aka you are one of the million people
that could own that amount.
Prestigious to say the least, and it’s a long term goal of mine which is attainable
if I DCA!!
Now we’ve talked all about Bitcoin this episode in terms of large caps, and why now
is the time to be accumulating, but there is another who in my opinion will be just
as valuable.
That is Ethereum.
Now why is right now the time to be accumulating Ethereum?
Well this year they are completing the merge and switching completely to proof of stake
by end of q1 or q2, and proof of work will end forever..
Aka all the fees that are currently going to the miners, will go to the stakers!
Now as we can see from beaconchain.in, there currently are 296 thousand 730 ETH2 validators.
From cryptofees.info we can see Ethereum over 1 day just produced over 23 million dollars
in fees for the network.
Now the merge isn’t going to reduce fees off the back, that will come with sharding
down the road…so this amount isn’t going to change with the merge.
It will likely stay the same and the stakers will get all the fees.
Dividing the fees, by the number of validators we get a total of nearly 80 extra dollars
per day going to stakers that is nearly an extra 2500 dollars per month, aka basically
a full ethereum!
But to run an eth staking node, you need 32 ethereum, which is an over 83 thousand dollar
investment.
Well you can get your share of those fees, by using a ethereum pooling technology like
Rocketpool where you only need .01 of an ETH to share in the rewards Own that tiny amount
of Eth, and you can take part in the share of the coming staking fees that nobody sees
coming.
Cheers viewers, I'll see you next time!