Cryptocurrencies Stocks and Real Estate Investing. Cryptocurrencies. Buy and hold for the Long Run (2-5 years or longer)
(This is NOT financial advice. Always do your own Due Dilligence when investing. All investing has it's risks. Crypto is very volatile high risk high reward.)
First off Cryptocurrencies are a completely new blockchain technology backed asset class. Unlike other asset classes, mainstreet folks like you and I are early adopters of the tech/asset class versus typical stocks (ie IPOs, very expensive real estate requiring institutional loans etc)
As a completely new hybrid tech/currency asset class Cryptocurrencies should not be ignored by investors.
So, why Real Estate Investors and Stock Investors should diversify into the cryptocurrency sphere? First off I think Cryptocurrencies are so far off and differnt from the real estate asset class that it's the perfect hedge to a real estate heavy portfolio. In Real estate timing is pertinent. If you bought real estate from 2010-2012 anywhere in the US you would have made a killing in the RE market. If you bought stocks in 2009-2013 you would have also done pretty well.
Now I wouldn't go off and take loans on your RE and dump the funds into cryptocurrencies quite yet. I'd first do research and then put some small amount of your total portfolio into bitcoin and other top cryptos as a hedge and to diversify your portfolio into a completely separate asset class. This way if the RE market tanks (which it tends to do in cycles. We're 9 years in a bull RE market) you could possibly have growth in another completely separate and disruptive asset class.
Right now is a fantastic time to get into cryptos as we are on a 'dip' (the market has 'corrected' from 'all time highs' (ATH)). In December 2018 the price of bitcoin peaked at $19,600 per bitcoin. This volatile pump and selling tends to happen as part of the push-pull Crypto market, each time sending bitcoin to new highs.
The rest of 2018 will likely be a bull market if history repeats itself (there has been sell offs every january in the crypto-market for most of the past several years). Also, there is a 'herd' of institutional wall street money and mom-and-pop investors who are merely waiting for more SEC and federal regulations before they open their funds and retirement accounts to this new asset class.
The current dip is an opportune time to buy. It's like a vacuum pull-back before a huge tsunami of investors pour into the market. The old saying in the stock market is "Buy when there is Blood in the Street" Baron Rothschild and this certainly pertains to the growing cryptocurrency market.
I believe Bitcoin will reach $40,000 to 80,000 by the end of 2018 as institutional (wall street) money pours into this sector. This is mainly because of the timiing of cryptocurrencies and the demand for them. Also the market cap of cryptocurrencies is low relative to other asset classes. Remember we are still early adopters in a completely new completely disruptive class of currency/cryptography/blockchaintech/asset/platform/smartcontracts...it's so broad and there's so many categories that are still growing within the entire cryptocurrency sphere.
About the market cap: Cryptocurrencies are at a 500 billion dollar market cap while
Total global equities is at about 42 trillion as a comparison. (https://seekingalpha.com/article/4075643-bitcoin-asset-class)
Also, gold's market cap is about 7.8 Tillion which is 16 times the amount of bitcoin at only 200 billion! Also, note that gold is not finite, there are mining companies that are constantly coming up with new technologies to mine more Gold.
If bitcoin just takes half that share it will definitely moon. I think with the growing millenial population Bitcoin will retain it's value as it's scarcity grows. As many of you know Bitcoin is capped at 21 million coins and will always remain that amount. It cannot be duplicated due to it's cryptographic tech--basically it's mathmatical programming would take infinite time to crack using gagilliion (is that a number) amounts of electricity and super computers.
(forgive me if my tech jargon is not as up to par with bitcoin experts, but I want to speak in layman's terms.
And my advice goes to Cryptocurrency enthusiasts (and fanatics). If you're completely heavy on cryptocurrencies in your investment portfolio (like 50-100% of it total, I would certainly consider investing in Real Estate. RE is a tried and true form of wealth generation, and is one of the easiest investments to use leverage and hard work to add value to properties.... (or you can be completely passive and hire-out).
My recommended Crypto Portfolio (I stress diversification and being heavy on the most used or most adopted cryptos):
30-50% Bitcoin
20-40% Ethereum
10-20% Litecoin
10-30% Ripple and XLM (as a hedge)
10-20% in Altcoins: EOS, NEO, XLM, BCH, ADA, XMR, IOTA, DASH, QTUM, PAY, BNB ICX, DRGN, ZRX, NAV, UBQ, ARDR, VTC, LSK, POT, THC, SUB, KCS, just to name a few :)
------For reference https://steemit.com/coin/@bitwill/types-of-coins-in-the-cryptosphere-2018-categories-of-cyptocurrencies
Types of Cryptocurrencies:
Cryptocurrency as Stores of Value
Bitcoin
Scarcity, Digital Gold, store of value. Will hold it's own during an inflationary period in fiat. For instance even as the dollar goes down in value Bitcoin will raise in value
Payment Network -
Litecoin, Bitcoin Cash, Dash etc
Used to transfer funds and act as decentralized blockchain currencies.
Privacy Coins
XMR similar to Payment coins but are private
NAV Coin, Monero
Platform Cryptocurrencies
Ethereum Neo ADA EOS
Allow tokens to be build on those platforms similar to apps.
Metcalfe's Law
https://www.zerohedge.com/news/2017-11-28/bitcoins-valuation-using-metcalfes-law
House flipping Rehab - Single Family House
Weiss grades.... take it with a grain of salt.... https://www.pdf-archive.com/2018/01/24/weiss-cryptocurrency-ratings-1/preview/page/1/
Grant Cardone - 10 X Rule and BOBA https://steemit.com/@grantcardone
Please leave comments, suggestions and rants below. I'd like to get some feedback and see:
What do traditional investors think about investing a small portion 1-15% of their entire investment portfolio in cryptocurrencies?
"Stay Thirsty my Friends...."