ethereum

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

  1. Active cash paying business or job to pay the bills and with the extra:
  2. 75% into boring, cash paying dividend stocks and/or index funds
  3. 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

  1. selected crypto/blockchain projects will revolutionize specific niches in the world
  2. 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
  3. at later stages “every rich dude or dudette” will want to own at least one bitcoin
  4. 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.

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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.

 

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How smart men invest (what you can do today)

Smart men always, always invest.

Always earning and looking to earn more.

You’d have a regular income be it from employment and/or entrepreneurship. It’s an ongoing thing, which you can split into

  1. spending (essentials and luxuries)
  2. investing

You’d be looking to keep increasing your monthly take home and bonuses by increasing your skills, experience and responsibilities over a period of time.

Always trying to increase the amounts saved and for investing every month.

You’d try to squeeze out as much into savings and investments which you can then use for mid and long term investing

Prioritize safe investing approach

80%+ into conservative and “safe-ish” investments such as

  • broad based index funds
  • rental properties
  • public listed dividend stocks

Conservative and safer investments usually brings about conservative and safe-ish returns, between 5-10%. Which is pretty decent, and I gear it this way because the bulk of my hard earned money shouldnt be gambled – it’s meant to work like a machine, day-in-day-out to increase its returns and value to me.

20% into higher risk, higher return

  • growth / tech stocks such as Apple, Google, Alibaba, Netflix, Facebook (Meta), SEA etc
  • cryptocurrency such as Bitcoin, Ethereum, Cronos, and so many other blockchain projects
  • some % into low caps

Growth / tech stocks and cryptocurrency / blockchain projects are pretty similar: they do very well in bull markets with lots of money, but conversely, they can get punished and pummelled badly in bear and down markets. Same goes for low cap which is the highest risk of them all, but with the highest potential returns too.

The goal is a balance trinity flowchart of getting richer by

  1. constant earning more
  2. constant saving more
  3. constantly investing and reinvesting more into conservative and higher return investments

Rinse and repeat until you reach your desired amounts, and even then, dont stop – keep going.

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Is cryptocurrency winter 2022 over?

We’re in that time of crypto period again.

Where there’s lots of blood on the streets and fear in the hearts of many. Many lost a lot of money, such as in

  • Terra Luna’s catastrophic meltdown
  • 3AC liquidation
  • Celsius bankruptcy

and there are scores more of such exchanges, tokens, coins and projects being killed or rugging people.

The last time I went through this, was when bitcoin (BTC) went into high of $19,000+ before crashing as low as $3,000+ (about 80%+ crash). Yep, that was AFTER I pumped more to buy more BTC at USD 18,000+.

Crydieme.

But it is what it is, I can see similarities today. Bitcoin as high as $69K, and been hovering around $19K (about 75% drop) for a long time now. It’s been wave after wave of negative events and news.

Should we be afraid?

It’s rationale and smart to be cautious and even afraid – it’s not a bad word.

Be cautious, but at the same time, I do not shun or look badly upon blockchain projects. If anything, I still hold onto my conviction that blockchain as well as cryptocurrency will change the world for the better. But there’s an important caveat:

Only the good ones will do that.

At least 90-97% of the blockchain projects and crypto are scams and rugpulls; and the okay-to-good ones, may be poorly managed due to insufficient regulatory measures in place. It is kinda like a wild wild west world of venture capitalism (or downright gambling, anyone?), but if you choose the right project and at the right time, you may be able to sit on a rocket to earn some delicious gains.

What to do now?

In crypto winter, it’s literally the best time to DCA, or dollar-cost-average into good projects.

Lot’s of fear to hold back that FOMO, and market moving sideways to give you time to research, speak to the team and participate in the project and community. Invest month-on-month amounts that you’re okay to lose (I dont like to lose money, but crypto can be really volatile and unpredictable) for the middle to long term basis.

Go with deep research and conversations, so that you will develop convictions beyond market swings.

I’ve been in crypto space since 2017-ish, and I’m more convinced that blockchain will change the world for the better, and I’ll be patient to continue to participate and invest for the long term.

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I’m Buying The Crypto Dip (my simple reason why)

This is NOT financial advice and neither am I calling you to invest in what I’m doing – I’m showing you what I’m doing and why I’m doing it.

Also, let me also stress that there is a high chance that crypto market as a whole can go lower.

Bitcoin (BTC) and Ethereum (ETH) can go down another 20-50%.

The top 10-15 crypto projects can drop another 40-60%

ALT coins can go down another 50-80%+.

Who knows?

My simplistic basis of re-entering the crypto market is really

  1. I fundamentally believe in the technology and emerging asset class of crypto. I’m taking an asset view AND utility view for the middle to long term. So 3-5++ years of hodling, I’m good with that. 10 years or part of my legacy also is considered.
  2. Bitcoin and Ethereum has gone down at least 65-70% of their recent at the highest (ATH), and I am unable to time the crypto market at all. I dont mind buying good assets with 65%+ deep discounts, and though they may dip more the next 6 months, I will just buy more and hodl my crypto bags.
  3. I have taken some profits back to fiat (never wrong to take profits).

My goal here is that I’m not able to time the market effectively to buy at the bottomest bottom (is there even such a term) and hence zero loss. Nope, I’m not that good (though I wish, lol)

I’m happy to buy good assets with steep discounts and wait for them to zoom up during the bull cycle again.

Resource

I use https://nigelchua.com/crypto (cryptodotcom) for most of my hodling

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