The Case For Crypto

It's just another opinionated day. I saw yet another expert bashing bitcoin, ethereum and cryptocurrency in general so I decided to write down my thoughts.

The gentleman likened crypto to a big casino. He said all you are doing is guessing which one will go up and which one will go done. I laughed. Isn't that the case in the stock market, bond market, forex and other markets?

In my opinion, these coins are all like stocks. The different technologies each coin ( or most) is involved in is mind boggling. Think about companies like Amazon, Google, Zoom and Square when they first hit the seen. Crypto is no different.

The trick is to find and own the survivors. If we could only look into the future and see which coins are the Microsoft's, Apple or Amazon amongst the literally hundreds out there.

Bitcoin is the pioneer. The pioneer has the edge and it does. The market capitalization is way above any other coin including Ethereum which is a distant second. However, Ethereum is many times larger than number 3.

The best way to play these coins if you are a speculator is to own a little bit of many of them. Inevitably, many of these will disappear the way many tech stocks did in the early 2000's. That is a fact.

If you employed this same strategy at the turn of the century and picked up Amazon at it's split adjusted price of 15 cents a share, you would be titting pretty good right now.

The current price of Amazon is around $100 per share. If you put $500 in AMZN back then your investment would be over $300,000. Of course, before the recent bear market we are in, it would have been 3/4 of a million dollars. Not bad!

The point is that no one really knew the Google's and Amazon's of the world. They were just bunched in with many other innovators.

The same thing will happen from the pool of coins on the market today. Will you pick the right ones?