Saving money is a sure-fire way to help build your passive income lifestyle. After all, if you can’t save, it doesnt matter how much you make.
- Budget vs Anti-budget
- One percent increments
- Honor the $10
Can Cronos (CRO) token price hit $1.60?
Can CRO cryptocurrency token by crypto.com ever hit $1.60? This would depend on a couple of factors, most importantly
Crypto.com needs to survive the bear / winter market
I am not delusional or high on hopium.
We are in a winter and bear market, one of the most brutal one ever.
More importantly, as long as crypto.com did not do any funny money games or engineering like how 3AC, Celcius, FTX did, they should be overall okay. In fact, if they survive and keep at their pace of
- continuing to do the job of pushing for crypto mainstream
- continue to push for legislation and regulation at the forefront
- continue to be faithful to the basic of introducing and managing crypto purchases for retail
- continue to build good products for new and current users
- continue to advertise, advocate and build the business
they should be more than fine.
This is the basics.
Bull market for crypto
This is easier said than done, crypto is very tied to equities market. In fact, I liken them very closely to growth / tech stocks similar to
- Zoom
- Netflix
- etc
These kind of growth / tech stocks take a very brutal beating when it comes to winter / bear markets, and conversely, tends to rocket during bullish markets and sentiments.
So…when bullish markets?
The degen will call this “wen lambo?”.
Some speculate that bitcoin and crypto rally will happen during the next BTC halving, but I doubt it. MAJORITY of Bitcoin is already mined (19 million out of 21 million mined).
I’m betting that bullish market is when cheap or free money is available in the market. Ie, interest rates needs to go low for cheap and free money to enter all equities, growth stocks…and crypto.
I dont have a crystal ball, but we can look back at history: most financial depressions recover within 1-2 years. The only macro-economic stuff that may throw a wrench and delay or convolute stuff are:
- Russia’s Putin annoying invasion into sovereign Ukraine
- China’s stance on Taiwan, and if they invade Taiwan
- other major events
That’s the only uncertainty.
Other than that, I was certain that post-COVID, the world would want to catch up to normal life, other than Russia’s Putin deciding to invade their neighbour. So, we now wait for Russia to be totally defeated, withdraw entire and/or Putin’s death.
200M Cronos (CRO) coin quietly burned by Crypto.com on 14th November 2022
Update: this is NOT a burn. It’s a bridging of ERC20 CRO to CRONOS, but seemed as a burn. Sorry guys
Bitcoin price $500K in 2026 and $1M in 2030?
Carrie Woods predicts Bitcoin prices as
- $500,000 each by year 2026
- $1,000,000 each by year 2030
2026 isnt that far, and 2030 too.
Maybe that’s why she and ARK Innovations has been so bullish recently, buying loads of CoinBase shares (COIN) and Grayscale’s BTC (GBTC) close to $300M worth. She mentioned that they’re underpriced, so they locked in an amount for now
What does this mean for me?
Eh, it’s a “nice to know”, but nothing changes for now: I just keep
- working at my main business and side hustles
- spend time with people I like and care about
- doing stuff I like and enjoy
I’ve shared this earlier, that
- 75% of my investments are “boring” dividend stocks and indices
- and “only” 25% are in high-risk-high-return-potential growth stocks and crypto
I’m just waiting to hit my sell price
And I’ll take out more profits, leaving some more to run
My target? At least $500K per Bitcoin.
Once Bitcoin hits that figure, my low caps would also have a good run, and I can take out profits from those too, together with my paltry BTC lol.
Where would my crypto profits go?
Into the boring dividend stocks and index funds bruh, nothing sexy — same old same old, keep doing
- working at my main business and side hustles
- spend time with people I like and care about
- doing stuff I like and enjoy
ARK’s Cathie Wood bullish on crypto: buys Coinbase and GBTC and what this means for you
Cathie Wood is seriously bullish on COIN and BTC
As of today 27th December 2022, ARK Innovation holds / invested
- 5.8 million COIN shares (worth $205 million)
- 6.4 million GBTC shares (worth $53 million)
These amounts aint small, but they aint chump change either.
That’s serious money and some serious investing chutzpah.
Cathie Wood alleges that BTC will reach $1M in value per Bitcoin by year 2030.
What does this mean to me and you?
The thing to understand is what is Cathie Wood and ARK Innovation’s investment theory / philosophy — it’s unlikely they invested in COIN and GBTC at whim.
They assessed and judged that the potential reward for investing (or speculating) into GBTC and COIN shares will payoff once they reach the the bull market again, and poured money into those.
Myself, my investment thesis and philosophy is
- Active cash paying business or job to pay the bills and with the extra:
- 75% into boring, cash paying dividend stocks and/or index funds
- 25% into higher-risk-higher-return projects such as selected blockchain / crypto projects
#3 is where I’m banking on “life changing wealth”
Some people call it “wife-changing wealth” lol, but I’m pretty happy with my current wife and family, and prefer not to change them at all. I’d rather die with and for them.
My thesis in speculating/investing in cryptocurrency is that
- selected crypto/blockchain projects will revolutionize specific niches in the world
- bitcoin is likely here to stay as money continue to be printed enmasse, more and more people AND institutions of wealth and finance will also help process the cryptocurrency holdings of THEIR clients, who want a slice of crypto, be it Bitcoin, Ethereum and top 10, 20, or top 100 crypto projects
- at later stages “every rich dude or dudette” will want to own at least one bitcoin
- I’m okay to lose that 25%. It IS high-risk-high-return, which is why for my wealth manifesto to work, I will keep working and keep investing 75% into boring stuff
Get rich fellas.
Genesis global crypto possible bankruptcy?
Sigh, so many meltdowns this year.
Luna.
3AC.
Celcius.
Recently, Sam Bankman-Fried’s FTX and Caroline’s Alameda…
…which is giving Genesis a potential shakedown and even run for the money. They’d hired lawyers to restructure the business to prevent them from winding down, but man, I’m not holding my breath.
The real question is…
What if Genesis goes bankrupt?
This is the one that I’m worried about.
If this happens, we can expect BTC to dip waaaaaaaaay lower than it is today, around $16K+. Who knows, maybe below $10K? Who knows, maybe all the paperhands has already sold and exited, and diamondhands are here to hold.
Regardless, I feel
It’s a good thing
Seriously?
Yes.
All the bad actors MUST go.
All the bad and short-term decision makers MUST go.
It’s a little painful in the shake up, but once these bad actors and bad actresses go, crypto and blockchain can have the fair, transparent and open chance for it to develop properly, without bad practices.
Start your 5%+ dividend passive income journey
Most people’s eyes will glaze over when they ask me how to start building their 5% dividend portfolio, and I realize that sometimes, we overcomplicate things.
As usual, keeping things simple is still the best way. Here’s how I build my 5% dividend portfolio on a simple basis:
- Set aside 25-50% of my income for investing
- Go through my country’s index fund and look for all dividend paying companies that made it into the index list AND pays at least 5% dividends
- Shortlist these to the top 10
- Invest the set-aside 25-50% regularly (monthly, quarterly or half yearly)
- Collect and reinvest at least 50% of dividends
That’s it – dont overcomplicate it.
Passive income manifesto: Build streams of passive income on autopilot
I LOVE PASSIVE INCOME, but you know, passive income isn’t made automatic.
I mean, once you’d created the stream or the passive income portfolio, then the passive income comes automatically…but have you thought about
How to automatically create streams of passive income?
This is a couple of steps higher than just looking at the end result of passive income, and this is how I frame and structure my decisions such that it automatically creates more and more passive income for me.
Sounds complicated…but it’s really easier than you think.
Workflow and framework
You know, freewill is often touted, and it’s best applied when it comes to love and God, where God gives us full free will.
But when it comes to investing, I dont want too much free will involved because it can cause issues such as
- overthinking
- overdoing
- not doing
And that’s why I prefer to not use freewill when it comes to creating streams of passive income. The easiest way for me, is to
Simplify, simplify…simplify
Every $1 that comes to me (be it $1, $100, $10K or more), there is a flow in terms of %.
- max 50%-75% to spend on living expenses
- min 25% to max 50% to invest into dividend stocks (or global index funds, whichever rocks your boat)
- reinvest at least 50% of dividends into dividend stocks
These are just 3 conditions I set myself, so whenever I get any forms of income, be it from consulting, management fees, treating patients, dividends, they are split into two groups #1 and #2 above.
Rinse and repeat.
Example
#1 If I earn $5000/month.
That’d mean:
- at least $2500 to max $3750 goes into living expenses
- at least $1250 to max $2500 goes into dividend stocks
#2 If I get $1000 in dividends
- $500 goes into living expenses
- $500 goes into dividend stocks
That’s it.
I like to keep things simple.
Can Tipsycoin project go up 500%?
In full disclosure, I speculate and own $tipsycoin, which is a blockchain NFT gaming project that started from my home base in Singapore. I’ve met the founder too, so it’s not a project whom I do not know the founder / team, that’d make the project a little closer to my heart.
Dont get me wrong, blockchain projects are still risky and speculative, so it may go belly up….BUT I’m holding onto my $tipsycoins and let it run to as high as possible.
This project is a low cap token project that I’m betting on.
The original project started using minecraft, but now they’re working on a larger world project, called Gates of Abyss, which is a location based RPG game. Kinda like pokemon and a couple of other games I had played before, and it’s both nice and interesting, because it’s geographical and communal.
Stake for $gin
If you have bought sufficient $tipsycoins, you can also stake them for $gin dollars, which is used in the Gates of Abyss games to buy equipment, upgrade stuff…and get this: you can use it to also cash out to real world dollars and trade them for cryptocurrency, which is nice to have.
Key for success
The key for them to work, revolves around one key point: stickiness, replayability and community; which in one word, is about having players come on board, stick around and play again and again. If they can do that, then the project would have higher chance of success.
Check their price here on coingecko. Their current price is $0.00004655, and even if they 500x, that’s “only” $0.023275 for one $tipsycoin. Quite modest to only need to aim for 2.3c for 500x.
Some nice tokenomics:
- max supply of 100 billion $tipsycpons, and no more will ever be created
- sell-only tax of 10%, of which 4% goes back to existing holders, 4% buyback for the tipsyvault and 2% to fund the project (ie free passive tokens for you whenever someone sells)
- limited buy-sell transaction of max 500 million per transaction, to prevent whales from eating up all the supply
LeanFIRE: A worthy goal for any man
I DO NOT TIRE OF SPEAKING OF THIS.
I’ve been sharing FIRE and leanFIRE for years
FIRE meaning financial indepedencen, retire early….and it’s even more important today, in light of
- COVID-19 that up-ended the entire world
- Russian’s illegal invasion into Ukraine and terrorizing Europe and the world
- China’s extended zero COVID policy (and not keen to bring in “western” vaccines)
- the great resignation
- how so many companies shrunk and terminated so many employees
If you have started your leanFIRE journey for at least 10+ years:
- you’d have an overall lowered and leaner lifestyle of lower expenses
- you’d have amassed an amount of cash-paying assets, be it dividend stocks, REITs, rental properties etc
which would help to make you a little more resilient towards these sudden world changes past couple of year.
Mathematical assumptions
Assuming you’d been living off $2K/month (so total $24K/year) and investing $2K/month (so also $24K/year) into dividend stocks.
Assuming the dividends are 6% per year, and you reinvest every single dividend dollar, by the end of 10 years, you’d have: $335,319.42
Your dividends of 6% of $335,319.42 from year 11 onwards will be $20,119.16. Divided by 12 months, that’d be $1,676.60 dividends a month.
That’s not bad, if you’re “only” spending $2K/month, because $1,676 is “only” 16% short.
Is 16% short okay, Nigel?
I take an optimistic approach, because frankly, you’d already have 84% of living expenses sorted out with your dividend income. The shortfall is around $330 bucks. A MONTH.
ANY part time job or side gigs can cover that short fall, because you’re very close to leanFIRE / coastFIRE.
So yes, 16% short isn’t too bad in my books.
So even if I lose my job, I know and am assured that 84% of my expenses are sorted, I just need a little part time work to cover that shortfall. If I still have a job, I’ll keep investing $2K/month and reinvesting the dividends for a good 3-5 years (up to a buffer of at least $3K/month in dividends).