So a month ago i was putting together ideas and I decided to along with

"Does Cryptocurrency Belong in Your Portfolio?"


Basically the case for Cryptocurrency as an investable asset class in a diversified portfolio. Having a strong diversified portfolio that doesn't have a high correlation with each other tends to create a long term healthy return.

That being said,
Cash
Bonds
Real Estate
Equities
Commodities

What percentage of your portfolio is in Crypto as of this moment?

If you say 0%, do you believe Crypto should not be an asset allocation for long term.

Same % as the recommended emerging market allocation.

<~ Someone that has more than the recommended in both.

A good 60/40 portfolio is always good.

60% BTC
40% Bitcoin

I think its a good asset to have for the long term. But I prefer by far Eth and Btc. Dogecoin is crapcoin imho.

I think its good only for the long term or if there is a big raise. Because when or if you ever cashout, there might have alot of taxes to pay (depends of where you live). For now, I plan to use my crypto for when I stop working or have a lower income so I pay less tax on it.


for now I have only like 3-5% crypto and 8% blockchain. I may switch blockchain to crypto!

80% eth id say
Rest split between GME stocks and shitcoins

Sorry,

I meant to break it up between

Cash
Equity
Fixed Income
Real EState
Commodities

and Cryptocurrency

its a highly volatile investment class. High returns for high risk.

this is the type you have to be able to throw away without looking back.


Find a poocoin then double your money consider this now your investment into other crypto

I have a very simple formula that tend to do good. Pick time horizon for investing, compare the desired asset class to Bitcoin for the time being, see how it performed previously. If it did badly, add a year to that and compare again.

Step 2 : Realize how the money system is broken, understand that there is a shiton of smart money that will be pouring in Bitcoin in the upcoming months/years, the banks are all slowly capitulating in it because customers ask for it and it's getting riskier and riskier not having exposure to the best asset in the world. In my opinion not having less than 50% of your capital not in Bitcoin is extremely risky but education on the subject takes months if not year. As of me, I have always been i'd say 90-98% in BTC, since 2014, it is really possible especially now to completely live on Bitcoin.

Just for the sake of fun let's take the shitcoin ETH (second biggets marketcap after Bitcoin) and lay some informations.

-NODE, if you want to run a node on ethereum it is more costly than Bitcoin, most user relay on a solution called Infura, which is run on amazon web services. In November 2020 Infura went down, exchanges answer was "Many exchanges had to temporarily stop allowing withdrawals of Ethereum tokens and the various tokens that are built on Ethereum." It is not really "decentralized" since it involve multiple layers of providers and would be possible for AWS to attack it just like they canceled PARLER previously this year.

With the planned upgrade to ETH 2.0 (EIP-1559) it will become proof-of-stake and much more heavy/complicated to run a node. You will most likely have to hire someone to manage it or be ready to spend a lot of time managing it yourself, the expected cost of running a "full node" is around $100,000 versus $200 on BTC. Again, they do not serve the same purpose so it's worth taking note. In the proposed Proof-of-stake upgrade allow users with a good chunk of coins to "stake" their coins to make more money leaving the middle class/poor class behind exactly like the current system we have (rich gets richer, poor gets poorer or nothing) All of this attempt to further "decentralize" the thing is let's say, very questionable.

-SUPPLY There is currently no maximum supply of coins, it is now sitting at about 116 00 0000 coins mined. Vitalik Buterin and his team pre mined 72 000 000 I am not questioning their good being I am just laying the fact that they have and control the vast majority of the coins. They have plans to change the protocol to burn ETH's as a transaction fee. A sort of hedge against having an unlimited supply. While I do not disagree with the idea we're still proposing to destroy coins which is a net loss of energy.

-GPU VS ASICS Ethereum’s proof of work security spend is lower than Bitcoin’s proof of work system, and more importantly uses GPUs rather than ASICs like Bitcoin uses. ASICs are specialized hardware with physical supply limitations (much harder for an attacker to acquire the majority of; the attacker would likely need involvement from existing miners with existing hardware) that can’t be repurposed for other activities, whereas GPUs are general purpose and abundant. Theoretically, someone could buy a ton of cloud GPU power for a brief period of time and try to do a 51% attack on Ethereum 1.0, and this attempt would be much cheaper than trying to do a 51% attack on Bitcoin, without specialized hardware or supply chain limitations. I can understand their will to upgrade to a proof-of-stake protocol for this reason as it would make it more costly to 51% attack the network.


It's important to know that they do serve very different purpose, most smart money/investor will take the time to educate themselves on the subject but it doesn't change the fact that Bitcoin is "harder" money than ETH is. The main difference in this great hostile comparison is for Ethereum you have to trust the team at the top and hope they will make good decision, I am not questioning their good will but it is a system ruled by rulers vs a system ruled by rules. It is worth noting that ETH is still an Alpha development, we should know in about 5 years if their upgrade to ETH 2.0 was a good choice and if it's working well.

I'm not saying that one is better than the other one just that one of the two is a better store of value. Cheers

This post was edited by TheHitman on Jun 4 2021 04:02am

Ay bitcoins the real shitcoin lol.

Ive tried looking in to crypto but the more I research it the less I understand its use or why anybody cares about it.
I dont see it as sustainable, probably due to my ignorance entirely but, for that reason im out.



This post was edited by ChronFather420 on Jun 4 2021 09:54am