Is crypto a great deal from the insignificant?

A friend of mine sold his house a few weeks ago, after having been in the market for more than 6 months. The reason why it took so long to sell was that I needed to do renovation work in the bathroom, and since it is so difficult to get some money to invest in remodeling, nobody would buy it. Remembering that Venezuela is in a housing bubble, they sold the house they have had for 12 years, with a small loss.

However, they were also halfway to paying a loan, which means they got a global payment, part of which they chose to put directly into their current loan. Fair enough. However, the other part (which I will assume is around $ 20,000) will go to having it as dead money in a safe, and although they did not know what they should invest in, they went to see a wealth manager at their bank.

A fraction in

I joked with him the other day that I should put everything in a cryptocurrency that claimed to be the next Bitcoin, but in reality I was only half joking, and he knew it. Of course, it is difficult, since cryptocurrencies carry a great risk, but I wonder which investment will generate the highest return.

If, for example, you decided to invest 10% of the total in cryptography ($ 2000), which would you expect to provide the year with higher profits?

I would say that most of the investments that the wealth manager is going to look for for his money will potentially return 10% in a year, so in 18,000, that is $ 1,800, which is not bad. This means that to compete, 2000 would have to increase by 90% over the next year.

ATHs and uploads

Bitcoin at this time last year was $ 3,500, which means that it has currently risen 300% since then. Those $ 2,000 would be worth 6000 for $ 4000 of profits. That is, of course, an easy decision to make in hindsight, but to get the same profits from this point, Bitcoin would have to reach 30K and be sold. However, "alone" would need to reach 19,000 for 2000 to return 1800 to compete with the 18,000 invested.

Then there is something like Ethereum, which has only gone up 200% for a year, but is still down ~ 6 times at its $ 1400 highs. So, if bought today, Eth would have to reach about $ 480 for those $ 2,000. to achieve the same as the 18,000 invested for a 10% gain.

What about Bitcoin Cash?

Well, similar to Ethereum, but to a much greater degree, Bitcoin Cash is approximately 9 times below ATH, and in the current ~ $ 385, it would only need to reach about $ 731 by 2000 to return the same as the 18,000 inverted It's possible? - Yes, it could happen.

Is it really a real risk?

While capital investment is always loaded with varying degrees of risk and cryptocurrencies may seem particularly risky, is it really as risky as people claim? Of course, I think there are a number of projects that are going to die miserably, but if one is looking for Bitcoin for a long time, it is almost certain to work since banks seem to be pushing the market and adding their own gateways.

Taking into account how small the capitalization of the crypto market is, the number of financial institutions that make movements is unprecedented. Since banks never make an investment with the intention of losing money and every dollar they spend is an investment, the great diversity of banks looking to enter and build crypto should be a great flag for investors to do the same and do what they want. want. You can turn around.

In order for all these banks to obtain the returns they would seek, the encryption limit will have to reach many billions and maintain it in the long term. While at this moment it seems like a great offer, the amount is really small considering how much they have at their disposal and I don't think it will be long before people like my friend are routine offered high risk and high profits return for a small percentage of your investment portfolio. When banks have access to hundreds of billions of investment funds worldwide, only a fraction diverted to cryptography sends to the parabolic market.

Preventing the start of a strong investment in an industry means seeing massive profits for everyone at the beginning, and that's almost all in cryptography right now. Of course, one must ensure that the cryptocurrency in possession is a goal to become an investment vehicle, so it is good to have some diversity.

A known loss, upward unknown

For my friends, they are not likely to put any cryptography for the same people that most will not do at this stage, they don't want to feel silly if everything goes south. While people want to access the bullish potential of the hockey stick, the ego and the social implications of being wrong tend to make the disadvantage seem much greater than it is.

Most people invest where most people invest and, as such, those investments do not produce great results, since many people who invest provide stability. Although people want to obtain volatility gains, people prefer investment stability and, if the price collapses, it does not fall too much, as there are many to shore it up, but it does not rise too much. Because there are many people in the market.

However, investment institutions can charge percentage fees to all these investors and use their own profits to manipulate the markets in search of their own profits and reverse the percentages to obtain a higher return. It is always better to invest with someone else's money and then offer the smallest piece of cake in return.

Significantly significant

For me, I don't have any lump sum for the investment and, although I put a small amount in a fund like many, I hope that the small amounts that I transfer to the cryptocurrencies are enough to make the institutions come more. It is worth it and returns much more than the fund, for much less.

While I don't really tell people what they should do with their money, it is common knowledge that investment diversity is part of risk management. What people do not seem to tell is that investment diversity is also to have access to possible profits. Many people distribute their money in what they consider investment vehicles, such as houses, stocks and precious metals, but a small and relatively insignificant amount in the newest investment vehicle in the block has the very real potential of surpassing them all.

For my friend, $ 2,000 is probably less than a couple of weeks of salary for some people in another country, an amount that would otherwise be insignificant. I wonder what $ 2,000 will look like, spread over some key cryptos in 5 years. If Bitcoin Cash survived so long, what is your price prediction?