So I am going deep down the crypto rabbit hole. I have opened a crypto.com account, and their crypto visa(debit) card is in the mail (so cool!).
I am wondering - aside from Bitcoin and Ethereum (which I consider “Tier 1” crypto), what are your “Tier 2” coins? Here I mean not so much the near blue chip status of BTC and Ether, but more up and coming cryptos that aren’t pure speculation ( ummmm … Shiba), that you are comfortable putting a decent portion of your crypto portfolio into.
For my “Tier 2” crypto, so far I have Cardano (ADA), Solana (SOL), and Polkadot (DOT). As well to a lesser extent, THORChain(RUNE) and Kusama (KSM). I want to DCA into these over time.
If there was a Tier 3, I would include the more game/NFT based Decentraland (MANA) Axie (AXS), and Enjin (ENJ).
And then for pure speculation, a wee bit of SHIB, because, you never know, right?
For one, I only have less than 5% of my overall portfolio (closer to 2/3%) in crypto. This was money that I made from selling a bunch of valuable instruments and rare books prior to us getting ready to leave. So, if I happen to lose every last cent, I won’t be happy, for sure, but it isn’t the end of the world.
Secondly, much of this video is missing how mainstream crypto has become. Several crypto exchanges/websites now have related visa cards, and transferring funds in and out has never been easier.
On a side note, currency has not been tied to anything actually concrete (or gold) since 1971 when gold was removed as the backing for the US dollar. So really, in a very complex manner, currency has the value that the market (or a large group of people) assign to it.
Now personally, I view crypto as (mostly) smallish hyper-modern tech stocks. Do I think it is revolutionary? Maybe, maybe not. But it is a very real opportunity, that people can make fun of crypto as much as they want - however, hedge funds, pension funds, and some very big names are currently buying crypto; what does this say?
Another thing that this video totally misses, is that Gen-Z, who are the new economic super power, are very, very much about grass roots, community based building - and finance/tech is no exception. Crypto is the current “movement” that Gen-Z are heavily invested in, in more than one form of the word. Do not dismiss Gen-Z, or their vision - they are the future, and crypto is a big part of that.
Thing is, crypto is making GPU prices go through the roof, and that sucks if my GPU ever goes to GPU heaven, that I won’t have the money to replace it. Plus mining is extremely power intensive and therefore bad for the environment. I’d favor it if the computational energy was used in something productive like say processing stuff for companies, but in reality all that computational power is just used to generate useless number. So what intrinsic value does it have? Otherwise I could just start my own crypto currency by making up some number from thin air.
There are lots of valuable work that requires huge computational resources, and it would be good if all this computational power used in crypto mining could be used towards that. At least we’re not wasting electricity and GPU doing useless stuff. I mean games have value you know…
My personal opinion on crypto is anything that explodes in value in a short time won’t last. It isn’t a good investment and it’s likely a ponzi scheme. Basically if they can keep suckering new people to put money into it, it will keep going up in value. But otherwise it will disappear overnight.
You are better off putting your money in the stock market into large, stable corporations for a 10% yearly gain.
That’s not guaranteed either. But a rate of less than 10% is over the long term may be achievable.
Now if you put your money in ETH you stake for 4% plus annually and you get massive exposure to a long term huge growth prospect. Think Amazon but still in the early growth phase. I got into crypto on something like the fifth major bitcoin cycle. Crypto just like stocks you need to be in for the long term (more than three years ) and you can make serious gains.
It’s better to be a player than sitting on the sideline, starting with a small amount is a good start all the same .
This exactly and eth is solid and altho the price has gone up over +1000% just in the last year it’s still affordable and getting in now you’d still be considered an early investor / nearly ground floor.
Looking at the models it’s only going to rise in value and yes it will take awhile. Of course if it’s a more volatile investment exercise the same caution as any normal investment- don’t put in more than you’re willing to lose and all that basic stuff.
I’m was kind of late to the game with eth but I still opened a wallet and put in a good sum when it was low last month after the China crypto ban announcement.
@Taiwan_Luthiers i get your hesitation tho I was skeptical for a long time but I wish I had listened to my other friends who told me to get on it when they did a couple years ago…
I get this too. But that “useless number” is money in the bank for people. And as far as ethics go it’s a hard sell saying something that uses resources to generate wealth alone is better than investing in dodgy corporations because they actively eff up the planet and screw ppl over. The one thing crypto doesn’t provide much of is jobs, except manufacturers (like those here in Taiwan for gpus) due to high demand. And it generates revenue that in theory will eventually be invested in other things or fuel the economy.
Sorry but my generation got the short of the stick as an American and as my dad always says, “I’m gonna get it while I can”.
We basically know, to a high confidence level, that Bitcoin and Ethereum are going to still be huge players in this space for the next five to ten years and probably decades. Their market share of the space may drop or not but that is fine as more users come on board and more money is invested.
I don’t think this is different than Windows and Apple iOS , Google and Yahoo, or the Social networks. Mostly the big players will be there for the long term due to network effects. There’s space for a few new big players too of course.
Solana and Cardano and Dot, that’s an interesting one .
The VCs have bet big on Solana and you see FX promoting them constantly . All were founded by ex ethereum folks who wanted to make the big money. Be careful of the news sources for crypto many are owned or controlled by entities promoting their own investments.
I dislike the fake decentralised platform but I respect the hustle. Some might have a big future. I’m an Ethereum guy I truly believe in the power of a decentralized computing and financial network such as ethereum , partly due to my terrible experience with banks here and how they hold back foreigners raising credit in particular!
Cardano don’t have as much VC money behind them and you see the hype die down and hence the price . Still I like the project evne though they are the slowest of all to get their dhit together.
As I have said many times Vitalik should have already received the nobel prize for economics. He’s a great guy too he has donated vast amounts to charity already.