Want to invest in the crypto markets but not sure how to have a plan? Need a DIY investment account or vacation fund? Well if you must invest in this asset class, I’d look at any examples available, like this one of mine:
- 50% Bitcoin
- 25% privacy focused blockchains
- 15% specialized blockchain architectures
- 10% nextgen ethereums
This is a growth portfolio recipe based on beliefs I hold – feel free to substitute your own. I’ll go into a lot more detail about why I hold these beliefs and more in future, but for now here’s a quick rundown – without naming any specific investments except Bitcoin, which is obvious!
I believe Bitcoin proper survives for many years to come as a store of value. I think Bitcoin is very likely to go to $10k in 2018, and keeps going despite continuing turmoil. Conventional funds are ready to cautiously test the waters in the coming year, and it takes little to move the market.
Privacy has been a driver of cryptocurrency design from the beginning. Early altcoins included some designed to be more anonymous, and the interest in privacy focused blockchains continues to find strong demand.
Pro tip: For the privacy group, the exact techniques used to keep transactions secret, and the strength of the core developers are my only two criteria for this group.
I think there are tremendous opportunities for specialized blockchain architectures to dominate new application areas. There are multiple trends contributing to this, including Internet of things, online payment processing, decentralized data storage, identity management, voting and so on. Things which can be done on general purpose blockchains, but less efficiently.
Finally I believe that decision logic on blockchains designed to execute it, basically as Ethereum envisioned it, is a game changer. Ethereum is a utility token with a high rate of inflation, hence not a good investment opportunity. There are several viable “Ethereum killers” out there and I like a few of them. I carefully chose a small number because the likelihood of failure is high, and they are all different. But make no mistake, these next generation Ethereum blockchains have a world of potential.