When it comes to cryptocurrency, there is only one purpose that you need to have. To accumulate as much Bitcoin and Ethereum as you possibly can. These two coins are considered the only two real “blue-chip” assets in this market, and most of the rest is pure noise and distractions.
But how much Ethereum do you actually need to own? The answer will be different for each person because everyone has a different situation and end goal. For some people, their goal might be to earn enough money to finally be able to pay off all of their debt, or finally have a financial cushion and no longer be living paycheck to paycheck. Other people may want to save enough to buy a new car or have enough for a down payment toward a new house. And then there will be other people who want to earn enough to be able to retire early and pursue their interests.
All of those options would be life-changing for different people. There is no correct answer for which one you should strive towards. Each person will have their own goal in mind.
However, for you to better understand my perspective in this article, you need to know which of the goals I am pursuing. My goal since getting into the cryptocurrency market has been to earn enough money so that I could retire early. Possibly moving to a tropical place where I can fully enjoy each day and go after my real interests and passions.
The first thing that you need to know is the amount of Ethereum that you “need” to have to become wealthy is always changing. For example, when I first into ETH, I was told that the magic number to own was at least 100 ETH. Obviously, that is a large amount of ETH that would be impossible for most people to accumulate. During the peak of the market, 100 ETH would have been equal to about $480,000. But as time went by and the value of Ethereum also rose. The magic number of ETH that you should on shrunk to 32.
The reason was that 32 was the minimum amount of ETH that you needed in order to run your own ETH validator when the ETH2.0 merge finally took place. This would allow you to earn passive income by staking and validating ETH. While staking 32 ETH in today’s value would net you a significant amount of ETH, it wouldn’t be anywhere enough to make you rich.
That brings us to the entire point of this article. When thinking about how much Ethereum or Bitcoin you should own. We aren’t thinking about today’s value. Instead, we are projecting what the value might be 10, 20, and 30 years from now. Last year Ethereum set a new all-time high price of nearly $4,800. Years ago people in the market predicted that Ethereum would someday reach a price of $10,000 per coin. It now seems a certainty that we will eventually reach that point during the next bull cycle.
But it won’t stop there. Last year when everyone got caught up in the bull run mania, financial experts began sharing some wild price predictions for Ethereum in the future. There were projections of ETH reaching $40,000 during the next bull cycle, and even over $100,000 deep into the future. While those numbers seem quite high if Bitcoin can reach a $1 million price per coin then anything can happen. This isn’t even mentioning how Ethereum has cut its inflation rate by more than 90% since implementing EIP 1559 and the merge. While things may seem calm now, during the next market uptick, there will be an Ethereum supply shock.
That brings us back to running your own validator and staking. Staking 32 ETH at a $1,200 price point will net you decent passive income. But, staking 32 ETH valued somewhere between $40,000 to $100,000 would net you some serious passive income. At that point staking Ethereum would be enough passive income to allow you to retire.
As I mentioned before, as time goes by, the goalposts for how much Ethereum you should own is always changing. This is due to the price of ETH going up, and also new developments to the protocol. You are now able to stake ETH even if you don’t have the required 32 amount to run a validator. You can either stake your ETH on a crypto exchange, your use pooling services such as Rocket Pool or Lido. What this all means is that owning 32 ETH is still the absolute goal to achieve. The new goal is to own 16 Ethereum. While this won’t make you wealthy today or tomorrow. It will be enough to earn you great passive income in the short term. By compounding the interest over the years, and with Ethereum possibly reaching those amazing price points someday in the future. That might be enough to make you wealthy.
Bitcoin and Ethereum are considered the only two “blue chips” in this market for a reason. The name of the game is to accumulate as much as you possibly can of these assets. Make monthly goals, and once you reach them set new goals. The key is that you never stop accumulating. While prices have dropped significantly recently due to the whole FTX situation. It is actually a blessing in disguise for those who are trying to build their portfolio. One Ethereum today will only cost you around $1,200. There will be a day when people will be in awe that you were able to accumulate a full ETH coin. We’ll look back at today’s prices and wish that we would have bought more.
How about you? How much Ethereum should you own?!
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