The 4 crypto's I buy every month.
On its platform, you got your heavy hitters like bitcoin, ethereum, xrp, cardano and doge. I mean on the subject of doge. You got doge doge reversed support, doge kill, doge phantom doge sunglasses, doge, catfish, doge, puppy, doge pocket doge, the doge world, or just steve doge steve from blues clues, its pretty easy to assume that most of these cryptocurrencies wont really go anywhere and will fail to be Adopted in any meaningful sense, similar to the dot com bubble, whereby thousands of new businesses were listed on the stock market to take advantage of fever pitch excitement for anything with a dot com in the name. It could be as simple as adding a dot com to your name only for a handful to actually pan out as good investment. So many deals that went through during you know 99 and 2000., so in a 12 053 horse race. How do we pick a winner? Well, you could follow what i like to call the darren brown method. You know the guy darren brown im, not a magician im, just good at remembering things predicting things dodging things and traumatizing people with elaborate horrifying life, altering zombie experience things well darren once did an episode called the system where he claimed he could teach someone to pick A winning horse every time he proved this by taking a lady and her name was alicia. Kadisha was told the winner of five horse races in a row. She bet on them, she won.
It was all pretty emotional, they celebrated, i definitely didnt cry and the last i heard kadisha mello with a mate becky and theyre now dating ross and tian wayne. I love a happy ending, but in reality, darren goes on to show in the show how all you really see in here is the winning outcome. What actually happened is he approached 7 000 people, as he knew there were 7 000 possible combinations across those five races. He bet on every number on the board and all were seeing here is the winning outcome, betting on loads of cryptos, or even just a lot of them in the hope that you pick the winning one is a very tempting proposition, but the spiffing britt youtube channel Did an interesting thing where he took every coin listed on binance and bet on absolutely all of them ill leave the video down below in the description, but the tldr is it didnt go very well: weve lost quite a decent quantity of money, theres, nothing wrong with Rolling the dice every so often if you want to take a bit of cash and slap it on something in the hope of gigger games, theres, nothing wrong with that, but just recognize it for what it is a bit of fun and speculation. At best, if youve watched any of my content, you know im a fan of long term consistently investing and i do the same with crypto and so far its treated me well now.
I know that im not up to speed with every single project and im going to be missing out on some exceptional investments. I mean a couple that come to mind solana at the minute im not invested in that, and i know its gaining a lot of traction. Things like xrp ive always avoided because of basically bad press around the people who created it. I dont have the overall patience to sift through thousands of crypto white papers trying to decipher what is a legitimate project and what is just marketing hypernet. This is why i take one to five percent of everything. I invest on a monthly basis and put it into our four more well established projects. Now there is room for expansion on this list, so please, in the comments hit me up with your favorite coins, so that i can research those. I just want to make it clear again that i approached this long term and i dont think that any of these projects are going to deliver 100x returns anytime soon. In fact, i think its far more likely that, in the short to medium term, they all absolutely tank in price, but these are the four that i put money into most months, starting with number one bitcoin. The network effect on metcalfes law was originally presented in 1980 and it basically states that a network becomes more valuable as more people use it. Think of it like this. When facebook first came about the challenge it had was convincing people to use it, but as more people use the social network, it becomes more valuable because basically youre going to go on that social network, because your friends are already on there.
Each new member that goes onto the social network of facebook makes it more valuable and more attractive to other members to join that network. You aint going on bibo when all of the events are being planned on facebook. The reason that bitcoin was able to establish its network and get the jump on all the other crypto currencies is because of first mover advantage. Its a simple marketing concept that states that first movers or first to market can get an advantage over their competitors who come later to the market. Coca cola is probably the greatest example of a first mover brown caffeinated sugar water is easy to replicate and many have tried, remember virgin cola, but coca colas reputation as the original has cemented its brand at the top of the pile bitcoin was the first crypto. So, for that reason it has always been seen as the big crypto. So for that reason, anyone coming into the crypto space sees bitcoin is a good place to start which thus improves the value of the network. You then add into the fact that theres only ever going to be 21 million bitcoin and you have an interesting supply and demand dynamic whereby, as the network increases in size, the total amount of bitcoin that can ever circulate wont. We are yet to see if things like the lightning network will make bitcoin a viable currency, but with a market cap, just shy of a trillion dollars. Bitcoins network is perceived as valuable by a lot of people and i think its going to be hard to convince those people that bitcoins network doesnt have some sort of value going forwards.
Lets put it this way. If i turned to you now and said ill sell you a bitcoin for ten thousand pounds, would you take it? Yeah bet your sweet baby. I think if there is mainstream adoption and companies look to hold some crypto on their balance sheet, it will be bitcoin. I also think, if theres ever a crypto etf, like the one fidelity supposedly pushed for recently, it will be bitcoin that leads to charge its the brand name of the space, its the coca cola, crypto and personally, i just have a life goal of owning one bitcoin Number two is ethereum: if bitcoin is digital gold, then ethereum is the smartphone. But what does that mean? The real genius of an iphone is not a slick, design, touchscreen or even hey, siri, its the fact that apple were able to create what is effectively a cheap piece of technology that is relatively standardized and open that hardware up to the most talented developers in the World to customize it any way they wish by the creation of apps the app store. The iphone is a piece of technology that allowed developers to build upon it in the same way. Ethereum is the technology and its smart contracts allow developers to build all sorts of things on top of the ethereum network. We saw this first with icos or initial coin offerings and now, more recently, with the explosion of nfts and d5 d file, decentralized finance really deserves its own video, but the space is doing some amazing things, basically bringing financial instruments and services to the masses that normally Were reserved for those with access to wall street now i do think the explosion in the space could signify a bit of a bubble.
I read a stat the other day. That said, the value of funds stored in smart contracts on ethereum has gone from 500 million to 40 billion in the last 12 months, which screams hype to me, making so much money that they can probably have a real hard time counting. It, i personally think were seeing the first iterations of what could potentially be an absolutely game. Changing piece of technology that could really disrupt traditional industries like finance or legal, or even how we just record ownership of stuff, like property. Ethereum also has a very good team behind it who are committed to the project long term. We can see this with the introduction of ethereum 2.0, even if it did take a little bit longer than they promised and the move away from proof of work to proof of stake. So if i hold bitcoin because of the network effect and scarceness, and the very human desire to place value on things that have absolutely zero value, are pokemon cards, postcodes pressure stones, all those little key rings with your photo on that you buy when youre drunk, i Buy and hold a theorem for the potentially game, changing technology, that is smart contracts, now ethereum isnt, the only crypto that offers smart contracts, but it is by far the most well established, but more and more recently, ethereum has been described as slow and expensive, which give Rise to competitors, which leads me onto three and four cardano and polkadot, while different in their overall approach.
Both of these share some similarities, namely the fact that they were both started by former founders of ethereum and looked to address perceived issues with the ethereum network. I could liken the decision to buy cardano and polkadot to my investment in lucid motors, a rival to tesla, founded by what was once one of the top guys at tesla. He walked away from tesla because he thought he could do it by himself and this guy. Basically built the model s, so you kind of got to take him seriously. It is likely in sectors such as electric cars or cryptos. There will be a few big players and not one dominant force. There is a lot to be said about taking an existing idea and improving it. William, wrigley didnt invent chewing gum. He just added a nice minty flavor to it. Cardano was created by a guy who knew the inner workings of ethereum and its flaws and went away and made what he thought was a better version with polka dot. The focus is on improving the ability for developers to own a dedicated, blockchain or parachain, which is then able to communicate with other blockchains, which is potentially very exciting. The struggle that faces polka dot and the other two to some extent is the lack of developers available to work on these projects and increasing competition. There is a lack of skilled crypto developers to go around, so these projects will battle for good ones and having developers working on your project is key to success and building the network effect.
For that reason, i allocate the majority of my funds to bitcoin and ethereum because they have the most established networks. Polka dot of the three is the most untested being relatively new, but the guy who built it literally wrote the script with ethereum. He designed a solidity programming language that is used to create smart contracts. Polka dots, founder gavin woods is very credible and smart, but that is no guarantee of success in this game. Its really not such a good plan to be so focused on backing one winner. Above all, others and polka dot, or any of the other three cryptos ive just discussed could amount to nothing. I dont invest more than one to five percent, because i have concerns. Regulators will just come in and slap the hell out of crypto or that the addressable market isnt, actually that big ethereum is already worth hundreds of billions. What will it take for it to be worth trillions so whatever you do just be careful, because its all good and well me sitting here going i invest in this. I invest in that look at this shiny piece of technology that might just change the world, but at the end of the day, this is a brand new space, a completely unregulated industry and its full of scams. Im prepared to wake up one day.