Okay, let me explain.
This post is not a pro-xrp/ripple post. I have already stated that I don't like how Ripple (the company) handles its project and how dumps mercilessly on unsuspecting retail investors, to the point of having successfully trained them to be happy with the coin being in a constant state of no-gains. While they print money by the billions.
This is not a post about how xrp will be at 300 USD by 2016 (see what I did there?) or how Ripple/Greedy Labs (the company) has achieved some sort of mind control relationship with their retail investors.
This post is about math, statistics and a very reasonable bet a person can do to become a millionaire on cryptoland.
Of course, this is not investment advice, consult your local economic news correspondent, google/startpage 300 related keywords, use any gains for things that are not evil, etc, etc,...
Okay, so with that out of the way, here we go.
People usually think that to become rich (as a poor crypto enthusiast) you need the next bitcoin. In fact, the keyword, "Whats the next bit..." give me this auto-complete results:
Searching for 350000% gains
The issue seems to be so straightforward. Find the next coin that is cheap (let's say, 0.50 cents) and that eventually will get to 100 USD within a year, and then even higher, to 8000 USD.
The problem with that reasoning is that is delusional. Both in terms of actually happening on the outside world and in your own individual context.
Let's go over some facts:
Fact #1: If a coin gets to 50 USD out of 0.01 USD, there would be some people who would notice, therefore, manipulation, dumping, pumping, and wild price rides are to be expected. Nay, they are guaranteed.
So, no, it wouldn't go up to 200 USD and then explode to 500 USD, if this happened with bitcoin at all is because literally the majority of humanity didn't have any confidence in it, so only the hardcore libertarians were pumping the price, while simultaneously having strong hands. That unique context is gone.
Fact #2: If you bought a coin at 0.50, and the price suddenly goes up to 10 USD, it is a statistical certainty (to an extent) that you will sell your entire bag. So even if you (by any slight chance) were sitting on the next ethereum and the coin goes further to explode towards 100 USD, you wouldn't be there for the ride. Most-likely-not. #justthetruth
Fact #3: If a coin explodes in price, let's say, from 0.50 USD to 20 USD in one day. It is 100% guaranteed that many retail investors will panic-sell by the hundreds of thousands of coins. You know that. They know that. And they know that you know that.
So, even if the coin had potential. The massive emotional dopamine surge in thousands of brains acting in their own self-interest will guarantee that the parabolic run will meet a wall of sell-orders. Strangely, that stereotypical context only rewards the weak hands and punish the most harden strong hands within the coin you picked. Not cool.
So, thinking that the context of what made bitcoin get to were it is is gone and that humans will not change. What are we supposed to do?
Simple. Just find the next XRP.
Let's see, the steps.
Step #1: Find your coin
Find a coin that has potential (XRP has some potential, but so far is just being exploited by the evil company who runs/heavily-influences the project) and that (this is important) is worth almost nothing. Let's say: 0.0000025 USD.
This is quite important, so let me repeat that.
You need a coin with true potential (so, do your own research), a coin that has a raving discord chat community, a coin that has tons of commits on github, a coin that ships new software every quarter, a coin that makes sense.
Read this carefully, a coin-that-makes-sense. You're poor, remember? so you don't have money to burn like it doesn't matter. A coin that makes sense.
But, also, a coin that (for whatever reason) is way below the zero's in value.
It has to be almost zero, but also it has to have some value.
So, between bitconnenct and tron. Between 0 USD and 0.02 USD, anything above that wouldn't work in most cases to make you rich. Unless you already have some money, but this post is for the ones who are really poor and want to become really rich.
Okay, you have identified your coin and it is valued at 0.0000025 USD
Now. Buy 100 USD of that coin. #Notfinancialadvicedoyourownresearchforentertainmentpurposesonly
If the coin is valued at 0.0000025 that would give you about 40,000,000 coins.
Yep. 40 Million. Noice.
Now, I know 100 USD is a lot for many poor people, but in many cases, it is still doable without bankrupting yourself for life.
If you are so poor that 100 USD will bankrupt you, you might invest 10 USD, which is still 4,000,000 coins.
Step #2: Become a salesman
This step wouldn't work if the coin you found is similar to bitconnect. Again, get this through your brain. A coin that makes sense. If you have followed my instructions so far, you have a solid coin with solid fundamentals, that will help humanity in a very direct and practical way.
If you haven't followed my instructions, you will be just another scammer sending referrals about HEX. Not cool, stop reading if that's the case, close the door when you get out.
Now, once you have your massive bag of that coin. (a coin that makes sense) You start promoting it like crazy. In youtube, in LBRY, in twitter, in Publish0x. Don't be a liar, mention here and there that you have coins in the game.
If the coin makes sense and is not a scam, you should be able to pull in some people over the coin ecosystem. And most importantly, since the coin makes sense (remember, a coin that makes sense, so HEX is a big no-no) they will, in turn, promote the coin organically.
Congratulations, now your coin might be on its way to doubling the price. Let's imagine this new price at 0.0000050
Step #3: Wait for the next parabolic cycle
Step 2 has been accomplished, but since you are poor, have a day job and don't have a lot of resources, your efforts haven't moved the price very much. That's to be expected.
What will kick off the price (truly) is the next parabolic run. So, wait for that.
This article is being written prior to the bull market of 2020, if you read this by 2021 and the market has already gone bearish, you will just have to wait longer, that's all, and wait for the next cycle of crypto-spring.
So, wait for that parabolic run. How do you know? Well, the bull market is the time in which Bitcoin goes crazy high, many new people come in via FOMO, and even your grandma wants to buy bitcoin.
Once that occurs, many hundreds of thousands of new clients will flood the market with new money coming out of their paychecks, their bonuses, their mortgages, their loans, their cars-who-were-sold and the like. And the whole market will move upwards. Yes, even your tiny-priced coin.
Step #4: Ethical exit-strategy
Alright, so your coin is on fire and going parabolic along with the market. What do you do now?
The exit strategy will be to wait for the coin to get to 0.01, which is such an insignificant price number that most people wouldn't panic-sell, and even if the price crashes to 0.001 people would not completely despair over it. It is such a nice, harmless number, that it almost guarantees success. Don't be greedy, don't think: "Let's wait to get to 1 USD" because your strategy might fail completely. You are poor, remember?, other similar whales who have millions of coins (let's say, the core development team, the co-founders, the first employers) can dump on you if you wait for too long, and then it's over.
So, you invest 100 USD in a coin valued at 0.0000025 getting 40,000,000 coins. And somehow you manage to sell that (eventually, since small coins always struggle with liquidity) when the price was: 0.01, so what's the mathematical result of that? Let's see (pulls calculator)
You are now the owner of 400,000 USD. Which is almost rich in a developed country, and very, very rich in a non-developed country.
Some extra points
First, if you really noticed, you are not (totally) betting on your coin. You are betting on Bitcoin and the industry-wide surge in value based on the parabolic run.
Second, for the people who might be reading this saying: "This would never work" let me present you some discord-based evidence:
I censored profanity. This is a family-friendly crypto-blog.
Third, you have read me saying over and over that the coin has to make sense. This is also important for the exit strategy. If the coin is an obvious scam (cough cough, HEX) then the price will not be supported easily and a flash crash is very likely once the coin surges in value. Especially since the scam-creators know that is a scam and have every incentive in the world to take out their entire millions of coins as soon as possible. So again, a coin that makes sense, a coin that makes sense. That would cover your ethical exit strategy. And also will make you feel at peace that you didn't destroy anybody's dreams or expectations.
This is what I am going to try to do. I am researching my possible picks for a 100 USD investment. I might be able to do 5 of those before the parabolic run without affecting the purchase of bitcoin that I have scheduled-in-my-mind. Let's hope for the best. I will share my picks when I have them.
Also, if you do make it and become rich through this article and feel generous afterward, this is my ethereum and bitcoin address.
Thank you for reading this article! this blog is still growing and I am very grateful for every reader around here. Make sure to check out my LBRY account, I am uploading videos there (that I might advertise or not around here) If you join via my invitation link you get from 20 to 40 LBC for free. :)
Update: an angry XRP fan scolded me about writing "XRP (the company)" when that's inaccurate. So it has been changed to "Ripple (The company)"
LBRY (My favorite, I can upload PDF's, audio and video, and is decentralized, follow me there)
My Crypto Clothing Store
Hardware Wallet (Affiliate)
Brave Browser (Affiliate)