It's been a while since I've posted a portfolio update...
Let's get right into it!
[Diamond Hands Tier]
Bitcoin (BTC): 80%
Whoah! Ben becoming a maxi much?
Not entirely, but I'm pumping up my BTC slice to record size for this bull run. Here's are 3 reasons why:
Reason #1: Big, juicy, and most importantly BORING institutional investors are coming, and they aren't like you and me.
These are the types of money managers that have spent their whole careers holding bonds and S&P 500 ETFs, do you really think they're going to pile into the altcoin casino? I don't think so--at least not in this market cycle.
How much have you heard Michael Saylor or Jack Dorsey talking about cryptocurrencies other than Bitcoin? Basically not at all. I see future fat cat institutional investors following in GigaChad's footsteps and dumping the vast majority of their crypto allocation into King BTC.
Reason #2: Layer 2 solutions are quietly making huge progress.
This is too big of a topic to cover effectively here, but the gist of it is this: There are a ton of altcoins vying for the use case of "Bitcoin but faster." While I do hold a small amount of one of these challengers (LTC), I could see a scenario where Layer 2 solutions like Lightning pull the rug out from underneath these projects as it continues to grow & mature.
Reason #3: The branding has never been more primed for mass virality
"I can't tell you who, but I've heard from multiple A-list celebrities who are jumping into Bitcoin, and haven't said anything yet."
I can't tell you how many times I've heard these words spoken on podcasts, YouTube interviews, etc. in my learning spree of the last few months. If you don't think there's about to be a tidal wave of influential figures riding the Bitcoin wave and fueling the rocket ship, I don't know where you've been hiding.
[Iron Hands Tier]
Basic Attention Token (BAT): 4%
Have they been a little quiet recently? Sure.
But this team is too talented to not make an enormous impact in the crypto space, and the use case they're targeting is one of the most compelling out there. I predict that BAT makes a roaring comeback in the near future, since it's an incredibly ripe on-ramp for crypto newbies. Now if only Joe Rogan would hype it up on his podcast again...
Cardano (ADA): 4%
- Personally, I see the Cardano vs. Ethereum race as a tortoise & the hare situation. Obviously Ethereum has a huge lead right now, but smart contracts have barely scratched the surface of their adoption curve in the real world. I believe that years down the line, ALL companies and individuals will be using smart contracts regularly in some shape or form, and by then, Cardano will have caught up and passed Ethereum thanks to their academic, quality-over-speed development approach.
- Also, staking! This is my main staking coin, and will soon make an excellent duo with...
Chainlink (LINK): 4%
- Staking on the horizon? Check.
- Super passionate community? Check.
- Enormous utility for the future of smart contracts? Big check.
[Wooden Hands Tier]
Ethereum (ETH): 2%
- I know I'm in the extreme minority with this TINY Ethereum allocation, but I'm sticking with my strategy.
- There's no doubt that Ethereum has been killing it lately, and I certainly expect them to continue making huge gains. But in the long-term, I'm really riding with ADA over ETH in the smart contract royale.
The more I read, the more I get the sense that Charles Hoskinson and friends are being low-key tactical wizards. By letting Ethereum go out and make all the mistakes possible during the infancy stages of their enormous ETH 2.0 transition, I can visualize them taking notes of every weakness in ETH's game, and building a final product that straight up beats Ethereum.
- To be clear, this is my biggest dart throw in my portfolio. I could absolutely be dead wrong here, which is why I have such a huge allocation in Bitcoin, which I believe will be a huge winner no matter who wins between these two smart contract players.
Litecoin (LTC): 2%
- The winner of my Digital Cash Showdown post.
- For the foreseeable future, I don't think people will want to spend their Bitcoin on any daily expenditures (just like people don't pay for stuff with gold now). It has too much long-term value (nobody wants to be the 10,000 BTC for 2 pizzas guy).
- Thus, I'm making my bet that LTC will be the more liquid coin that normal people use to buy their avocado toast every morning, at least until Bitcoin's Layer 2 solutions are mature enough to handle these transactions efficiently.
VeChain (VET): 2%
- HUGE use case proposition. Supply chains are an absolutely massive industry, with huge problems under the status quo. It's ripe to get blown apart by blockchain solutions, and I believe VeChain has positioned itself as the clear leader in doing this.
[Paper Hands Tier]
Augur (REP): 1%
- Massive use case proposition (Gambling & prediction markets = ~$550 Billion and growing)
- Clear category leader
Enjin (ENJ): 1%
- Massive use case proposition (Gaming market = ~200 Billion and growing)
- Clear category leader
Here's where Enjin was at my last portfolio update (August 2020):
And here's where it is today:
Things have started to heat up among the top 3, but ENJ is still holding the throne. I'm excited to see what they have in store for the NFT space moving forward.
80% Bitcoin (BTC)
4% Basic Attention Token (BAT)
4% Cardano (ADA)
4% Chainlink (LINK)
2% Ethereum (ETH)
2% Litecoin (LTC)
2% VeChain (VET)
1% Augur (REP)
1% Enjin (ENJ)
Alright gang, that's the list!
One of the coolest things about the crypto & altcoin community is that there isn't a single pair of people that have the same exact portfolio.
Please let me know how your HODL pot compares to mine in the comments! Can't wait to discuss our differences and similarities :D