Why I sold HALF of my Ethereum in 2022

Ethereum. Bitcoin. Solana. Polkadot. Litecoin. Dogecoin. Shiba? Cardano. Binance
Smart Chain (BSC).

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I went a little overboard on that list. But at least 4 of those are fighting
for the same goal and those 4 are all trying to take Ethereum’s market cap and
win the battle of becoming a smartchain/defi/dApps/smart contracts crypto
currency chain.

I understand that Ethereum (Eth) is way in the lead against any of these
other crypto competitors. The problem is that I’m not trying to gamble on my
crypto.

Crypto is already extremely volatile and is growing very quickly.

I have strong faith in bitcoin and none of these cryptos are trying to be
anything even close to what bitcoins use case is.

No other crypto other than bitcoin is attempting to be the global store of
value and monetary system. They are all trying to replace banks and change how
the world interacts with financial systems and transactions.

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I think many crypto projects will change the world and some sweet technology
will be developed in the years and decades to come.

The problem that I have with investing a large portion of my portfolio in something like Eth is that it could very realistically lose to another platform. Solana could end up being 10x better than Eth. That’s just the facts. At a minimum there will be many cryptos competing against each other, which is not something I want to put a heavy investment in.

Should I put 10% of my portfolio into Eth? Should I put another 10% into Solana? What about a third 10% into BSC? How about just 30% only into Eth?

I’d rather put that 30% into Bitcoin, because Bitcoin has no competition.

If I invest in all the top cryptos, there is a good chance I will end up losing most of my portfolio value, most cryptos don’t last more than 5 years in the top 100.

Like I said, I’m also not willing to put all my eggs in the Eth or Solana basket. So, I believe to win you have to either get lucky or diversify heavily into many different projects.

It reminds me a lot of Dell vs. Apple vs. HP vs. Acer, etc… There will
likely be a top dog eventually, I just personally don’t know who that will be
and I’m not willing to gamble my future financial life primarily on a single
project.

 

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I also don’t want to diversify into 20 different projects and take the time to learn about all these shiny new things. It took me hundreds of hours to grasp the importance of just Bitcoin, and the economics behind it. I even come from a tech background and it was still a ton of information to grasp. I do not have the time to learn 20 more and I don’t think it’s necessary to do so.

There is a very good chance that 95 out of the top 100 cryptos will be
nearly worthless in the next 5-10 years.

I believe Bitcoin will still be number 1.

I believe Eth will likely be on that list as well.

The reason I sold half of my Eth is because I’d rather have that portion in
an investment that I have more confidence in. That investment being Bitcoin.

I’m very bullish on Bitcoin as a paradigm shifting technology. I also think
many crypto projects will end up being used in my daily life. But Bitcoin is
enough for me. A low time preference, store of value, that I can pass on to
future generations in my family.

If I was a 100% crypto investor there is a good chance that I would have
kept all of my Eth, and also diversify into many other cryptos.

 

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I’m not a 100% crypto investor.

I like investing in Bitcoin, wine, some stocks, my Roth IRA, and in the
future some real estate.

Bitcoin can realistically 50x.

A 50x return is plenty for me.

When it comes to risk vs. return, I don’t see anything better than Bitcoin.

So, with all that said, I sold my Ethereum. I bought more Bitcoin.

If my remaining Eth grows a ton, I’ll probably sell more of it.

That’s just my current mindset around the crypto space, and I’m not willing to spend most of my time learning about 100’s of new projects and gamble or at a minimum be a mini-VC in dozens of random cryptos.

I may be wrong about this choice in the decades to come, and I’m fine with
that. I’d love to hear your thoughts. Like I said, many of these cryptos will
become something valuable. But none of them have the same use case as Bitcoin
does. Bitcoin is the only one I’m willing to stake a large portion of my net
worth on.

None of this is financial advice. It is just my opinion and my story.

You can use these links to support this blog:

https://join.robinhood.com/jefferc60 – Robinhood: Get a free stock!

https://www.coinbase.com/join/christ_ggp – Coinbase: $10 of free Bitcoin with deposit of $100

https://www.gemini.com/share/6r78pl2e – Gemini – $10 of free Bitcoin with deposit of $100

🔎Disclaimer🔎 All content in this blog is for entertainment purposes only. I am not a professional financial advisor and my statements are not to be taken as instructions or directions. In no event will I be liable for any losses or damages arising from the use of content from any of my platforms, including, but not limited to YouTube, Blog, or any other social media. I reserve the right to change my opinions and entertainment content at any time. Please be sure to do your own due diligence!

Published by Christal

I’m here to share the knowledge and tips I have so you can see how I make passive income, save for an early retirement, and enjoy life outside the cubicle.

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