Crypto coins as investment
Cryptocoins have the ability to multiply your assets rapidly.
For example $10,000 invested in Solana a year back would have resulted in more than $1M about a year later. Of course it is not that the rising tide lifts all boats. Some boats collapse and sink. A similar investment of $10,000 in IRON token would have resulted in $0 in Q3 2021.
As another example, consider this tweet.
So which coins do should I invest in and which coins should I skip. To answer this question, I consider three types of crypto coins as follows:
Bitcoin: This is the OG of all the crypto coins. I consider Bitcoin as sound money. And I am invested in Bitcoin since I expect this to become quite valuable in the future. Just that I expect the multiplication might be 10x to 100x in the next 10 years with a high probability.
Alt-coins: These are the crypto coins that do have sound fundamentals. And these have the potential of increasing in value over time. My goal in these series of newsletters is to identify such opportunities so that I can invest in them. I plan to explain my thinking behind my investment so that you can make your own decision.
Shit-coins: These are the coins which go up and down based sorely upon various pump and dump schemes. The fundamentals of such coins are very weak. I will ignore such coins in our future discussions.
It is critical to be able to identify the promising Alt-coins. I plan to do so. So periodically I plan to look into the technical and business aspects of an alt-coin in detail and describe that here.
I would like to emphasize that this is not investment advice. This is just me describing my thought process that governs my decisions to invest in alt-coins. And please make your own decisions since we all have different constraints.