In this video I am going to show you why Michael Saylor, the CEO of MicroStrategy (MSTR) is wrong about Bitcoin being the only crypto asset to buy out of the more than 13,000 cryptocurrencies.

Again, this is no hate on Mr. Saylor. He is one of my favorite people In earth.

If you are looking to preserve purchasing power then buying bitcoin is likely your best bet.

If you’re looking for the highest expected return as an asset allocator then practicing a strategy I mention is more prudent in my opinion.

 

Which one’s the best crypto asset where bitcoin is the best crypto us okay what’s the second best there is no second best there’s no second best crypto asset there’s a crypto asset it’s called bitcoin right there’s no second best okay how do I buy more bitcoin take all your money buy bitcoin then take all your time figure out how to borrow more money to buy more bitcoin then take all your time and figure out what you can sell to buy bitcoin and if you absolutely love the thing that you’re that you don’t want to sell it go mortgage your house and buy bitcoin with it and if you’ve got a business that you love because your family works for the business it’s in your family for 37 years and you can’t bear to sell it mortgage it finance it and convert the proceeds into the hardest money on earth which is bitcoin. [Music]

Michael Saylor is wrong he’s wrong because I believe it is incredibly imprudent to say that you should only buy one asset out of an entire asset class can you imagine someone telling you hey you should only buy one stock or one equity or one company out of all of the companies and stocks in the world you should only buy one I can’t imagine that that is very great advice and I’m going to show you exactly why and how you can make more money in cryptocurrency not doing what Mr. Shailer says.

I’m going to tell you why he’s right and why he’s wrong given certain circumstances so number one there’s more than 13 000 cryptocurrencies right now all right so to say that there’s only one that you should buy I think is incredibly important and the reason is because most people are in crypto to make a lot of money I don’t know many people that actually go into cryptocurrency investing that say hey I don’t want to make a lot of money right so if you want to make the most amount of money I’m going to show you exactly how you can do that and what you need to first understand is that Michael is in a completely different situation than likely you are okay.

He is a billionaire he owns a company named MicroStrategy that on average makes over 500 million dollars a year over the last 10 years okay so do you have a cash flowing asset that’s making you 500 million a year where you can go refinance your house and sell your dog and pawn off your mom and drop ship your bananas to go buy more bitcoin I don’t think so so if you don’t have as heavy of cash flow as he does maybe it’s not a good idea to refinance everything in the history of the world to go buy bitcoin all right and first and foremost let me show you before we jump into the strategy here.

Let me show you or explain to you look I love Michael Saylor he’s practically probably one of my favorite people in the history of the world and I do think he’s gonna go down as one of the most impactful influencing entrepreneurs in the history of the world not by his business that he built not by the words and the videos that he’s been shooting but by his actions and his conviction to go buy that large amount of bitcoin okay.

He is a absolute legend in my book and also let me tell you this too I think bitcoin is the hardest money but I think it’s imprudent like I said to only own bitcoin all right and by the way bitcoin is my largest holding my portfolio but I’m going to show you a proper portfolio allocation and how you can actually increase your return and the strategy behind that so let’s go ahead and jump into where bitcoin is at so I’m going to give you some comparisons in December from the first week in December that’s what we’re going to do.

We’re going to compare some assets and the reason is if you watch some of my previous videos I talk about something called the seesaw effect so historically it’s been a very very good job since back in you know 2015 when all coins started to really come out to start the bull market and especially the last year of the bull market during the the four-year having cycle with a large amount of bitcoin so I usually start this the last year the bull market with over 60 bitcoin and then as the bull market starts to progress into the last half and especially last quarter of the year.

It’s usually pretty prudent to start trading some bitcoin into all coins I’m gonna show you exactly why so bitcoin has done 231 percent since the first week in December of 2020 okay we’re just pulling from that that week to where the price is currently at all right let’s look at ADA has done 1300 percent since that same exact time frame okay.

Let’s look at bnb has done 1590 percent since the same exact time frame from that first week of December to where we are at currently right now and Luna has done 9783 percent since that exact time frame let’s look at one one more that we love Solana so these are all like some of my biggest holdings actually I started to scratch ADA that’s another conversation but Solana has done 1400 or 14,451 percent since that exact time frame okay.

Now what I was talking about earlier is something called the seesaw effect so what we found is there’s huge opportunity because of the volatility where you can trade bitcoin into the all coins okay so what happens when money flows into crypto it flows into the hardest money and I do believe the best and safest quote-unquote safest cryptocurrency right now which is bitcoin okay.

It has the most history there’s no company behind it it’s the most decentralized I believe it’s the most secure because there’s millions and millions of nodes and computers that run the network so I do believe what he’s saying is correct I think if you’re gonna put all your money into one cryptocurrency the safest and I think the best bet is likely bitcoin because it’s lasted the longest and it’s likely to have the least amount of problems and counterparty risk with you know the actual company behind screwing everything up right because there’s no bitcoin company that’s gonna say actually we don’t want 21 million we want 50 million coins right.

We know for a fact how much bitcoin is released today and we know that the supply is going to reach 21 million by the year 2140 all right so we love bitcoin but like I said when you’re starting the bull market we usually suggest at least for ourselves right and this is something we do in our fund this is something I do in my personal accounts as well is I hold the majority in bitcoin to start the bull market and then as we progress through the bull market.

We start to trade some of that bitcoin into the all coins now here’s the thing we are trying to increase our return but we actually in us dollars okay but we actually care more about increasing our turn relative to bitcoin I’m going to explain to you in a chart here so what you can actually do is if you do love bitcoin if you love bitcoin this much you would actually understand this data that I’m sharing with you and you would say okay well if I love bitcoin this much how can I accumulate more bitcoin yes you could go sell your dog and refinance your cat to go buy more bitcoin but you could also put some more money into all coins that you actually do research on you fundamentally understand and by the way I think it’s completely improving which we’re going to talk about some sectors here in a second to say that there’s only one sector within cryptocurrency which is store of value which is you know.

Bitcoin I think there’s massive value in blockchain and cryptography and I think there’s huge huge value in the future right a lot of these haven’t caught on yet but you’re gonna see based on these returns these all coins right here allow you to accumulate more bitcoin because this is what happens the money flows into bitcoin then guess what happens the smart money trades into undervalued cryptocurrencies these undervalued cryptocurrencies have a small market cap so what you need to understand is get some contacts okay.

Bitcoin is worth 1.2 trillion dollars right now but then we scroll down a little bit and we look at Luna and it’s only worth 17.8 billion okay so when when the smart money starts to trade from bitcoin into these all coins the altcoins have much a lower market cap so they have much more potential upside because you know if if just you know 200 billion flows from bitcoin or even 200 billion in new you know tether flows into some of these top 10 in the market cap they explode because they have a much smaller smaller market cap all right.

So that’s exactly what happens is the smart money flows from bitcoin into the all coins then the all coins rise and guess what you can do you can trade back into bitcoin so what you can actually do instead of denominating everything in a chart or you denominate it in us dollars this is Solana bitcoin okay so you can see that when this chart is going down that means that bitcoin is outperforming Solana when this chart starts to go up that means Solana is outperforming bitcoin okay.

This is a change in your complete mindset all right you’re denominating things in bitcoin all right and what you can do is you can put some of your capital not saying all of it some of it in an asset that can outperform bitcoin so that you can trade back into bitcoin so if you would have been here right bitcoin was outperforming in December which like we talked about okay.

You start to trade some bitcoin in December into Solana well you could have had a dramatic increase in your price which this is denominated in Satoshi’s which is how you value bitcoin and then you could trade back into bitcoin and then you see Solana just erupt and it’s far far outperformed bitcoin this year and I’m not saying you’re always gonna pick the perfect asset at the perfect time you’re gonna buy the bottom you’re gonna sell the top that doesn’t happen but I’ll show you you know how to actually have your portfolio constructed in ways like this and we can look at you know another one like harmony okay.

Harmony gets completely sold off which by the way we have volatile moments that’s what happens these these lower cap all coins the smaller the further you go down on the market cap list the more risk you have because it has less capital in it which means there’s less people truly in institutions or and investors that actually believe in the asset the more belief in an asset the more capital it’s going to have so if you’re scrolling down on this list and you’re investing into a meme coin that’s you know ranked the number 4,000 all right and you’re buying this coin it’s likely has much more risk because it’s much more speculative because there’s not enough capital not enough belief behind the project which it could be either because it’s undervalued or it’s actually a stupid project to invest in which by the way most of crypto is completely idiotic.

A lot of it has zero utility but the few that do that have a great team behind them they have really strong fundamentals they actually have a strong token metrics and they have real utility in the coin those you have a huge shot of actually outperforming bitcoin because the market caps are much much lower okay so realize when you go down this market cap list the further you go down the more risk you’re taking but technically the more potential upside but I’m gonna show you how to actually understand this and conceptualize it so same thing with harmony right.

This is number like 60 all right so bitcoin was outperforming here right in December which is what we just talked about and since then one is the token has greatly outperformed bitcoin as you can see this chart because we’re denominating it again in bitcoin so you can start to think like that we can trade the all coins into bitcoin you don’t have to trade in the us dollars first you can trade the all coins into bitcoin when that rises you can just trade right back into bitcoin and own bitcoin right so if you really loved bitcoin you would consider doing this because there’s no denying that all coins outperform bitcoin very very strong and I’ll show you in another chart this is bitcoin’s dominance over all of the crypto in the history of the world.

So the total crypto market cap okay bitcoin had to start 2017 had owned 95 of all the money in cryptocurrency what happened during that period from 2017 all as we progressed into 18 bitcoins dominance over the market it only had 36 of the entire market to end that year in 2017 okay then when we started to come back up right through through the bear market all the way into 2020 and then what we’ve seen once again is a large sell-off okay not not necessarily sell-off more capital is flowing into these other all coins relative to bitcoin this does not mean that the bitcoin price is going down it just means that the velocity of money is flowing more into these other all coins relative to bitcoin and we just hit our target of 45.

We actually exceeded it slightly and we do believe that this is going to head much lower we’re not we would not be surprised if we see bitcoin’s dominance in the high teens okay to end this market even possibly even close to about 12 would be kind of my bottom threshold where I do see bitcoin dominance possibly dropping to towards the end of this year and and likely into early January of 2022 okay and what you need to understand it’s just proper portfolio allocation so these are different sectors within cryptocurrency okay.

Let me zoom in a little bit so you guys can actually see a little bit better but there’s there’s all these different sectors within crypto you got to understand you got to have some context to be able to make a wise decision and like there’s new sectors coming out all the time okay there’s smart contracts right like all the coin those are the projects I truly love and I’ll show you kind of how I allocate my crypto holdings there’s Esports you know tokens right.

There’s privacy coins there’s oracles there’s centralized exchanges NFT’s stable coins there’s payments coins there’s decentralized exchange tokens there’s a store of value like bitcoin or maybe like hex or something like that okay and this is how I like to you know generally allocate my portfolio so 25 as we progress through the the bull market this is my portfolio like I don’t know like a month ago or so so the store of value is about 25 which is pretty much all bitcoin in my portfolio but then I put a lot more money into smart contracts because they do have so much potential they have true utility of their coin because every transaction on the blockchain is generating that fee why do you think every single time you go to swap coins right.

On Uniswap or you go to mint NFT’s on Ethereum you’re paying huge gas fees because you’re using eth okay on the Ethereum blockchain to pay for each transaction that’s what I’m talking about with smart contracts that’s why we love them you can also audit and see how much how many transactions and how active the chain is and you can base your valuation on the activity on the chain okay then you’ve got oracles that really connect they’re essentially like an API that connects like smart contracts to other things like real world events got centralized exchanges decentralized exchanges payments coins then you got you know a little bit of cash in your portfolio okay.

What you need to understand is where are you at you got to have some self-awareness okay what are your goals what’s your risk tolerance how much you understand Michael Saylor has an unbelievable amount of conviction for bitcoin so he has a deep why behind why he’s buying bitcoin again he’s trying to store his value he’s not trying to have the highest expected return so you need to understand that he has deep conviction and a deep fundamental understanding of of bitcoin okay.

If you do not have a deep understanding of what you’re investing into during these volatile moments you’re gonna get emotional and you’re gonna make an unwise decision and you’re gonna sell the bottoms and you’re gonna buy the tops so if you do not understand why you are investing in what you’re investing in you’re really really going to screw up okay so I’m telling you you need to understand why you are investing in what you’re investing in and if you can’t understand why then maybe give it to a professional that understands why so that you don’t make emotional decisions and wreck your portfolio and your potential return okay.

So if you’re a complete beginner investor maybe you just do like twenty percent okay in the top five all coins the other eighty percent of your portfolio is bitcoin if you got you know you want intermediate growth you want to grow your portfolio more you have the ability to do some more research and you understand what you’re investing in maybe you want to trade a little bit right maybe you you move your bitcoin position to about 60 your large cap all coins which I believe are really in the top 100.

It’s debatable it could be in the top 10 but I consider large cap and the top 100 mid cap I consider from like 100 to 200 and then small cap everything outside of the top 200 and by the way the top 200 I’m talking about on the market cap list right so on this list everything on the first page of coinmarketcap.com is the top 100 in my opinion again that is subjective and then everything from 100 to 200 mid cap everything outside of 200 small cap and then maybe you want to trade a little bit right.

Maybe you want to learn that skill where you’re actually pulling money out of the market investing is compounding in the market trading is just pulling money out of the market let’s say you get you know want to get a little bit more advanced you’ve got some high growth and you’re and you’re shooting for a higher potential return in your portfolio maybe you decrease your bitcoin position to about fifty percent large cap thirty percent mid cap twelve percent small cap five percent and then extremely high growth you could go like twenty percent bitcoin this is about where I’m at right now fifty 50 large caps then 15 mid caps 10 and you bump up your trading account you know and this is what a traditional advisor would likely say is hey you know get some bonds crypto cash stocks.

I think it is important to kind of have an overall picture of what your entire investment portfolio and where does crypto fit into that okay maybe it is one percent five percent seven percent for me it’s much much higher than that it’s the vast majority of my investment portfolio that I have in cryptocurrency because I have extreme conviction I understand it but this is ultimately what you need to understand that’s what I was talking about earlier the further you go down on this market cap list and you know you start to buy meme coins that are number 2000 on the market cap list.

What you need to understand is when you have a potential higher reward right you’re shooting for a million percent which by the way by the way bitcoin’s already done a million percent since inception so you’re looking at maybe another coin that’s the next doge or the next Sheba or the next bitcoin you’re saying okay this has the potential to have a reward of a million percent what you need to understand is the higher potential reward there’s usually a seesaw effect where you have a lower probability of you actually getting that million dollar or that million percent return so you need to understand the risk is technically higher because the probability of success of actually getting that reward is lower okay.

So if you consistently put money into these small cap all coins these really you know moon shots we put all your money in that you’re taking way more risk and the probability of success is much lower so you need to understand it proper portfolio allocation is incredibly important and if you ever want to understand proper portfolio allocation you want to understand how to increase your return and have the highest expected return that takes into account the risk that you’re also taking and the probability of you actually getting a certain return.

We teach us in our in our groups we also provide obviously a lot of free education on YouTube so just continually watching my channel if you’re getting value from my channel I would greatly appreciate you hitting the subscribe button if you get consistent value for my channel maybe drop a comment down below let me know so I’ll keep pushing out more YouTube videos and if you do want just more access in exactly what I’m buying, when I’m buying, why I’m buying it, what trades I’m making.

I can tell you we have a group of hundreds and hundreds of investors that are making a lot a lot of money I truly do believe we have the best asset allocation and strategy in cryptocurrency all things considered and if you want some more information there’s a link in the description below anyways hope you got value from this video let me know in the comments below make sure you hit the like button and go ahead and continue on to this next video this is Jeff signing off.

Published On: October 25, 2021 / Categories: How Tos / Tags: , , , , /