What Are You Still Doing In Bitcoin?
Ok, so this is something I have been speaking of for quite some time now. Essentially, It’s over for BTC and ETH, in terms of leveraging it as a wealth creation tool. In terms of Bitcoin, this has been the case for a number of years. The only way you performed well investing in BTC during the last cycle was to buy the covid bottom, or as close to it as possible. As a super successful Bitcoin investor, you could have realized a 20X return.
This is however in a best-case scenario… buying the bottom, and then selling the top. Very few investors managed to sell above $60K. Even the super bears on X only exited the market in the $40K zone. So, realistically speaking, a 10X return is perhaps what successful Bitcoin investors were able to achieve in the previous cycle. However, the majority of investors continued to HODL all the way down to $15.8K.
If you have been reading my articles over the past few years, you would recall that this is what I expected, long before it played out. I also received a fair amount of animosity from readers, based on my predictions. However, I was pretty accurate. I outlined a Bitcoin bottom between $13.8K and $18K. I was also open to the idea of a quick wick lower. However, it was not necessary to pay too much attention to that possibility.
In the event that outcome played out, I was quite clear that I didn’t expect a daily close at those levels. Look, in terms of TradFi, realizing 1000% over two years is rather impressive. However, in terms of Crypto, this is standard practice for altcoins, and over significantly shorter timeframes. Since I published BONK as an altcoin pick exactly a month ago, it has rallied 1000%.
It took BTC investors two years to realize a similar return. Furthermore, there’s a break of approximately two years (bear market) where BTC investors are unable to realize gains, and if they are HODLing are realizing floating losses. It’s not an outright loss. However, in terms of their investments and assets, their valuations are significantly lower. Using these assets as collateral is also a lot less powerful.
The BlackRock Effect
BlackRock is busy widening the net and taking over as much control as possible. The ETF outcome is also an expected catalyst for Bitcoin. However, what do you think is going to happen when an ETF is finally achieved? The rally in Bitcoin will be great. However, it will ultimately be setting the stage for astute Crypto investors… yes, altcoins! Who cares about BTC dominance, eventually it gives way.
Investors who have been scooping up altcoins in 2023 are the real winners here and not just any altcoins. Micro-caps, and more specifically, micro-caps in sectors positioned to moon. This is, in my opinion, the time to leverage BlackRock and other TradFi behemoths. Ultimately, securing a large payday… and on the back of their chessboard strategy. We are not here to gain a monopoly, we are here to make money.
Essentially, we would rather see “other” individuals and entities in a position of prominence. However, it’s not crucial. As an investor, you learn to leverage whatever dynamic is at work, whether, it is favorable or unfavorable, you work with it until a favorable outcome is obtained… and then, execute! Idealists tend to never make money in markets. They are better suited to cults.
This is also why so many Crypto communities become cult-like echo chambers. They form a type of religion due to their unwavering “values”. They dedicate their time to defending community values and continuously debating the greatness of their token and the community that backs it. This is all a waste of time, human resources, and ultimately, capital. Essentially, they continue to accumulate a token that never really performs.
Had they been more open to the idea of why markets exist in the first place, they would have diversified, and at least secured gains in other Crypto investments and sectors. I’m not saying you cannot dedicate a significant amount of time and capital to particular projects. However, you need to keep it healthy and maintain an open mind. The Bitcoin ETF is an opportunity for altcoin investors, not Bitcoin investors.
Marginal gains will be on offer for Bitcoin investors. Whereas, the altcoin market will receive tanker loads of rocket fuel. Look, already many micro-cap projects have given investors thousands of percent in 2023, which is essentially still bear market territory. It is however important to remember that investing in altcoins and micro-caps requires knowledge and experience, which is why fly-by nights tend to consistently lose when it comes to the altcoin market.
Final Thoughts
Personally, I have almost zero exposure to Bitcoin. It was a similar case in 2020 and 2021. Altcoins are the “juice” in my portfolio. If you have been following X influencers, chances are you have avoided the altcoin market due to BTC dominance. However, regardless of BTCD, altcoins have racked up enormous gains. Essentially, profitability comes down to knowledge. If your investment decisions are still based on what others say… you have a long way to go.
That’s reality, whether you like it or not… agree or disagree. The fool is a servant to the wise. This couldn’t be more true of financial markets. Endeavor to become knowledgeable as opposed to profitable for the simple reason that profitability is a natural byproduct of knowledge. However, profitability gained in isolation of knowledge and experience simply comes down to “luck”… and that can change. See you next time!
Sapphire Crypto 