Roughly two weeks ago I wrote a post about one of my close friends who is advising his mother on where and what to invest in. His mother was keeping around $2 million in the bank and instead of making money the cash is sitting losing value through currency depreciation.
I have not spoken to him since they had visited their financial advisor and today he ran through a crypto portfolio he bought this week. The timing is rather good as we have to be near the bottom at this point in time or this will be famous last words.
He purchased $100K Bitcoin, $100K Ethereum, $25K SOL, $10K XRP, $5K AAVE, $5K STELLA, $5K COSMOS, $5K ICP and $3K COTI. In total he spent $258K which has been invested into crypto and there is some nervousness as this is his mothers money. I did not ask him why he had selected certain crypto because I expected to hear LINK in there somewhere and not COSMOS, STELLA or AAVE. Someone must have advised them and I am glad it was not me because I would never do that and has to be the investors own choice. I want nothing to do with this and very happy he listened as my choices would be similar, but with the addition of LINK and possibly SUI. Still nearly 13% of the $2 million in crypto is a start and will find out if they made other investments elsewhere.
The Bitcoin, Eth and Sol I get and COTI because I got him involved with that as he wanted to copy what I am doing. I do believe COTI is the one that is going to surprise everyone when the Bull Cycle kicks into gear with the narrative around privacy.
When we look at Zcash which has already pumped 1494% in the last 12 months and is still down 4.5X from it's all time high of $3191.93 which was achieved on October 29th 2016 so yes over 9 years ago. In the last 30 days the price has increased by 330% and yet it offers basic privacy and cannot do multiple transactions and is a one on one non scalable crypto. What will happen when investors realise what COTI has should be mind blowing and why I cannot get enough of those coins. This will happen and patience until that day arrives is required in order to make a big pay day.
I do expect my friend to make some great returns when we see the ATH's being achieved again whenever that might be and some stressful days ahead if the market dips again which is highly possible. Still where we are in the cycle and when he purchased his crypto is a win in itself even if there is still a downside. I would be disappointed if he does not see a $700K value on their crypto portfolio within the next year at some point. A $400K or $500K return compared to losing money having cash in the bank account is a no brainer.
Crypto has come a long way over the last 5 years from being a taboo type investment then becoming more niche and now not yet a mainstream investment, but soon will be. It will be interesting to see how this crypto sector grows over the coming decade especially if we see a massive Bull Cycle. Many investors who have been watching from the sidelines over the years will be forced to enter due to FOMO and this may become our liquidity exit cash.