Pivoting to all-in crypto investments

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avatar of @anomadsoul
@anomadsoul2 months ago
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6 min read

My portfolio is crypto only. I'm not like @taskmaster4450 that invests in stocks, and I don't have the funds to be like @scaredycatguide who is in real estate, and I'm far from being able to emulate @khaleelkazi's risk management where we leverages crypto to get more crypto, which then he leverages again.

Life gave me Lemons, I'm selling lemonade energy drinks at a 10x profit, and slowly building my wealth, the goal is reaching generational wealth status. At one point I will have enough to diversify - or go poor trying. The six figure hell is real, and @edicted can confirm.

Once I am in a comfortable position regarding my crypto portfolio I will expand it, but in the meantime I am fully aware that this high risk/high reward approach is not the best, but degens gonna degen, ain't that right @l337m45732?

Pivoting to all-in crypto investments

I did this a while ago, in fact I made a post about being all in on crypto and man, I think I have never been so diversified within the crypto ecosystem. I was in the Six figure hell a few months ago but getting out at the wrong time decimated my portfolio to around half, so now I am struggling to get back to hell during the longest bear market in crypto so far.

I have around twenty $500 positions in low market cap tokens that may or may not give me a decent ROI. Most of them have strong foundations that you can buy, stake and forget until your calendar reminds you about your xxxly check update; some of them are meme coins that ride hype waves and you have to pay close attention to get out when the token reaches your target price; and the fewest of the bunch, but that I still have, are humongous risk that can 100x or -99%, I call this my degen bag.

I'm also grinding future airdrops, which takes around $1k per drop if you want to get to the top tier drop because you need volume. I am involved in more than a few of these grinds, which take time and may not give you any return; the positive aspect of this is that you are not investing in a token, but you can actually grind the drops with safer tokens such as ETH or wrapped versions of safe tokens.


But you see, in order to get where I am - which is neither good nor bad - you first have to understand why blockchain technology is so important, and then whatever you take from that needs to be aligned with your worldview and approach to wealth; you have to be convinced that this is the future and you have to bet your ass on that conviction.

The way I see it, the internet as we knew it 20 years ago was the first successful iteration of blockchain. Think about it, what works for the internet, blockchain can do it better. Almost every company that runs on web2 could run on web3 and improve on several fronts.

One of the key factors I look into when investing in crypto projects is what do they solve?

Searching for leading indicators of traction in a crypto project can often lead to low markets that the crypto company is going after. There is a vast variety of options where we can find a gravitational force and momentum that make me invest in a micro-cap project with an immense upside.

Everything gets easier when you can manage this fact.

The problem lies on which key metrics should you take into account when investing in a cryptocurrency project? Another issue is that many projects are misleading and sell smoke when the real status of the project might be completely different, so relying on data on-chain is the only way to go.

Data has become the holy grail, but we need accurate and transparent data. If you want to invest in a private company you rely on the numbers they provide to you, and you can't do invest in these companies through public outlets, that's why transparency is so important for publicly traded companies and investors. But man, I'm not even sure I trust the transparent data that Wall Street feeds me.

Data after the internet is a hockey stick chart when it comes to value, and if you can get that Data from a transparent, public blockchain then man, whatever you profit/lose from investing using the on-chain KPIs is completely on you.

It all comes down to accountability.

Do people really want - or even care - to be held accountable for every single decision they make? By the looks of current political wings in power in many 1st world countries I would say they don't, but I am biased because I hate both radical factions of the political span.

Anyway, I digress. Let's look at social media platforms. Being able to process transactions quickly but not needing (or being able) to remember them eliminates the use case of blockchain on social media; unless the blockchain is built specifically for this use case, such as the Hive Blockchain. The amount of transactions per second that happen on the top social networks is too much to save, and also you don't need the same security for a conversation transaction than for 100 million public transactions.

Decentralization is the whole point of all of this, but not everything can be fully decentralized, or even partly decentralized.

Corporations aren't looking for transparency so that's why blockchain adoption is so difficult. Think about it, why would governments want their business (private and public, pun intended) to be fully transparent? Why would a top company want all their money transactions be public?

The two revolutions theory

Blockchain technology as a concept completely revolutionized the digital world. It is the answer to many problems, and even to some that don't exist right now but will at one point. The main economy problem it solved, in my opinion, was the double spending in digital transactions, which was a major issue that slowed down the growth of digital currencies. Blockchain Tech allows anyone to create a secure, decentralized, and transparent system for engaging in digital transactions without the need for intermediaries. Fuck intermediaries man.

The two revolutions theory: A monetary revolution and a Tech revolution.

The monetary revolution is all about the use of digital currencies as a mainstream currency, and the potential for them to replace traditional currencies - even if the governments are fighting tooth and claw against this, does the word CBDC ring a bell? Bitcoin was the first digital currency that gained widespread acceptance and it will always be the king among cryptos with different use cases that solve different problems, but they are all Bitcoin's children.

The success of Bitcoin is key for this monetary revolution because it will determine the future of all current and future digital currencies. We only get one shot at changing the status quo; If BTC fails, no other iteration of crypto will ever be able to gain the trust and thus the adoption of the masses, at least in a few decades - because people are sheep, and sheep forget fast and easy.

The technology revolution is even more interesting, because it allows blockchain technology to transform industries beyond finance. The Ethereum community was the first digital currency powered ecosystem to recognize this potential, and they created a platform for developers to create Dapps. It was then when the use cases for blockchain technology expanded far beyond finance and include healthcare, supply chain management, and more, but we are still in diapers and the adoption of these varied Dapps is tiny compared to the adoption web2 apps have.

The Tech revolution hasn't even started, but at least it is brewing; it is the success of BTC and Ethereum that will determine the success of these revolutions.

The internet boom will be tiny compared to the blockchain boom. The internet has enabled us to connect with people across the world, access information, and conduct transactions without borders; it also paved the way for the sharing economy, social media, and e-commerce. Blockchain technology has the potential to do the same, but with added security, transparency, and even privacy when needed; Blockchain can also bring cultural awareness, not just technological change and thus create a new economic system that will eventually lead to greater social and economic equality, as well as increased accountability.

We're still early

The adoption of blockchain technology will happen in the same way that the internet was adopted. Initially, a small group of people will build great products, and eventually, mass adoption will occur as more people start using these products. Even with a shitty customer (user) experience, there are already blockchain projects and products that work, imagine when we polish the user experience and dumbify them enough to the average person can call themselves a crypto bro.

Once the products that blockchain offers are easy to use and understand for regular users, the potential for mass adoption will skyrocket.

Nobody anticipated so much money funneling into blockchain. This translates into a cheap adoption process for those that come after us.

Every time you get scammed, a solution arises. We're paying for the future blockchain adopters.

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