Towards the end of this week’s Crypto Corner, I delved into the biggest mistakes I have made in my nearly 10 years of investing in crypto.
I pointed to two mistakes but I think the biggest mistake, the one I regret the most, was not buying enough in a bear market.
Take 2018 as an example. Back then, Ethereum was at $100. I had cashed out some profits near the top of the cycle in 2017 and bought property, stocks and invested in a business.
Crypto was getting badly beaten up during that period. All the belief that was built up evaporated.
But as we know, that was just a temporary downturn for Ethereum, which is up 12 times since then even today in a bear market.
It would be near impossible to replicate that return in any other asset since 2018. And my big regret was that I didn’t invest more in Ethereum at that time. And this doesn’t even account for where I think ETH will be in a few years time when it’s much higher again.
I am determined not to make that mistake again.
If you have the proceeds, I believe now is a great time to invest in crypto, just when sentiment is at its worst, particularly through the dollar cost averaging method. Nobody knows exactly where the bottom will be and a lot will depend on the macro picture, but in my view, inflation continues to look like it’s peaked and the main focus is moving to growth & recessionary fears in Q1 2023.
Remember the stock market and high-growth investments like crypto will bottom before the normal economy does and are highly dependent on rates (with longer term rates markets looking like they’ve potentially peaked).
So we are in a good place from a medium term perspective. We just need to understand what fundamental stories might drive the next bull run, and invest appropriately.
You can take a look at my biggest holdings and my key entry levels on the Portfolio page.
For ETH, between $800 to $1,300 looks a reasonable entry zone, in expectation of a long term hold. And if we do go lower, it will create even better opportunities to invest and make potentially life-changing gains.
Vitalik: “we are only 50% of the way there”
There is certainly no slowing crypto down. The scale of development in the space is staggering, even with the slump in the market.
I continue to believe that crypto is poised for long term disruption of the global economy in a myriad of ways.
Consider that when Vitalik was asked to evaluate Ethereum’s development over the past six years, he asserted that “we are 50% of the way there”, thanks largely to the launch of the Beacon Chain, the London hard fork and the rise of nonfungible tokens.
And this is only the core infrastructure of Ethereum base layer, it doesn’t include layer 2s, rollups, applications, etc, we are still so so early.
Last year we saw “the Merge”: a major upgrade and a transition to a proof-of-stake system that radically improves efficiency and reduces the potential emissions from the Ethereum network. But that was just part 1 of the story.
Part two, called “the Surge”, plans to give Ethereum increased scalability, massive bandwidth and throughput. The Merge and the Surge are the most important upgrades, according to Buterin, to building out the Ethereum network.
You can read more about it here.
In the news…
Meanwhile, here are some of the other promising developments I am keeping a close eye on:
- A reminder of why blockchains are such a game changer.
- New use case: Self hosted decentralised front ends / UXs
We’ll keep you posted with the latest developments here.
Please note: Keep an eye on the Facebook page, because we’ll be posting there for the next week while we upgrade our broadcasting systems.
All the best – Michael