as the crypto markets fall now is the time to be rethinking your strategy now is not the time to be looking at the thousands upon thousands of all coins thinking you're going to find the next 100 x those days have passed but like a thorn in your side chico crypto is here almost every day through the ups and the downs well let's try to keep you up in these down markets because it's time for chico crypto yeah if you think playing the shitcoin game in these turbulent markets is the right strategy you have another thing coming now's the time to be looking at the blue chips those that are going to be around come next cycle many of these altcoins
who literally have no use cases are going to fade like dust in the wind now i'm not saying there isn't going to be a time to speculate on the low caps but you need to understand how the money flow in crypto works before investing money flows into crypto in a pattern first there is fiat which goes into usually the easiest and most accessible to buy bitcoin and the large caps eventually the money will flow into mid caps and the low caps but this is when the markets are hot and we have an alt season when the markets are up the fiat flow into crypto is massive of course money will trickle down into these mid and low caps especially as the hype is strong and people are learning about crypto and becoming more knowledgeable on how to use the tools of the market when the markets are down the money flow dries up and of the little amount of fiat money coming into the markets it's going to flow into bitcoin and some larger caps little to none flows down to mid and small caps especially as the hype dies down and people aren't excited to learn although that tiny amount of money flow going into bitcoin and the large caps is the smart money they know the cycle of crypto they know they will be able to score rock bottom prices on some of the futures most valuable assets for the rest of this episode i'm going to explain this beginning with bitcoin now owning one bitcoin should be a goal of every crypto investor there will only be a max of 21 million btc which means only 21 million people in this world can own a whole bitcoin and the president of el salvador naia buchelli explain this in a tweet perfectly you said there are more than 50 million millionaires in the world imagine when each one of them decides they should own at least one btc but there will only ever be 21 million bitcoin not enough for even half of them a gigantic price increase is just a matter of time in my opinion and naives owning a bitcoin will be seen as a power symbol of the wealthy elite just like owning a multi-million dollar mansion or that sports supercar the limited supply of bitcoin 21 million doesn't allow even all the millionaires in the world to own a full bitcoin and they're going to want to have one which alone will push up the price now i'm sure when bitcoin was at its peak of over 69k owning a full bitcoin seemed out of the grass for most people but now that bitcoin is below 38k a full bitcoin doesn't seem so far out of reach for example let's just say we're going into a bear market where bitcoin will reach back down to 23k over the next six months and we wouldn't reach back up to 38k until six more months later aka a year let's just say you bit the bullet and you'd start dollar cost averaging 3k of your savings or income into bitcoin over this time each month after one month bitcoin is at 38k your three thousand dollars put in would own seven point nine percent of the bitcoin after month two bitcoin at 35k that three thousand dollars put in would net you eight point six percent of a bitcoin shoot after two months you already own 16.5 of a btc steadily on your way to a full one after month three bitcoin at 32k the three thousand dollars would get you about 9.4 of a btc you are now close to a quarter of a btc so close after month four bitcoin at 29k the three thousand dollars would get you a full 10.3 of a bitcoin you already have over a third of one after month five bitcoin at 26k your three grand investment would net you eleven point five percent of a coin after month six bitcoin at 23k your three thousand dollars would net you 13 of a btc in just six months of dollar cost averaging you could possibly own over 60 of a bitcoin thus if you kept this same strategy on the way back up to 38k the same percentages would apply and over the next six months totaling one year you would own over 1.2 of a btc now i know a lot of you are going to say but tyler i don't have an extra three grand to throw at btc per month that's just out of my limits well you don't have to own a full btc to be in the top now let's just take for example satoshi's vision that bitcoin is a globally adopted asset everyone in the world uses it the world population clock estimates that there are over 7.928 billion people in this world that means if btc was evenly distributed across the world population 21 million divided by 7.928 billion at max the most a single person could own would be just .00264 of a btc aka just over two tenths of a percent of one although not every single person in this world is going to use btc so how much based on bitcoin adoption well in 2020 based on the number of bitcoin users and the supply the average bitcoin holding was just 0.2 of the btc aka 20 of one based on the adoption curve by 2030 the number will drop significantly down to point zero two or just two percent of one so by holding a fifth of a bitcoin today in 2022 you are already above average and by 2030 if you hold that fifth you will be way above average but how much to enter the elite the top one percent of bitcoin holders worldwide do you need to hold a full btc well no actually all the way back in 2018 that bear market is stephen lee at moneyball tweeted this if you own .28 of a btc in huddle you can be certain no more than one percent of the current world's population can ever own more btc than you a modest investment of 1 830 bucks today can ensure you are a one percenter in a future bitcoin world point two a of a btc just over a quarter will ensure you are in the top 1 in a future bitcoin world back in 2018 it was a modest investment of 1 830 today that is higher yet still modest just 10 528 dollars remember you can dca and become one of the top one percenters of bitcoin holders worldwide you don't have to make that entire investment right now but you can make it over the span of a year and most likely hit your goals although there are some other goals to be hit as a bitcoin holder of course owning one is a goal i think every crypto investor should strive for but if you hit one btc you earn yourself a place in a special club the 21 million club you own one of the 21 million of the bitcoin supply as we can see from this reddit post it took this investor three years to hit the 21 million club and own a full btc although if we read his post about the biggest regret and lesson he had he said biggest lesson it was 2019. i had nothing in crypto and i watched bitcoin bottom at 3 000. at that time i had around 3 000 of savings and was waiting to buy i thought it was going to go lower i was wrong so wrong i was greedy and wanted more i thought i could sneak in a bit more than one bitcoin but looking back now not being in the market was dumb a lesson for some he didn't dca dollar cost average when the markets were down and was looking to time the markets well he didn't time them and he watched the price rebound if he would have dc8 he could have got one btc so much faster now there's another club that even i'm not a part of yet the one million club this is when you own 21 bitcoin aka you're one of the one million people that could ever own that amount prestigious to say the least and it's a long-term goal of mine which is attainable if i dca now we've talked all about bitcoin this episode in terms of large caps and why now is the time to be accumulating but there is another large cap who in my opinion will be just as valuable that is ethereum now why is right now the time to be accumulating ethereum well this year they are completing the merge and switching completely to proof of stake by the end of q1 or q2 and proof of work will end forever aka all the fees that are currently going to the miners will go to the stakers now as we can see from beacon chain to in there currently are 296 thousand seven hundred and thirty e2 validators from crypto fees.info we can see ethereum over one day just produced over 23 million dollars in fees for the network now with the merge happening it isn't going to reduce fees right off the back that will come with sharding down the road so this amount isn't going to change with the merge it will likely stay the same or even get higher and the stakers will get all the fees dividing the fees as of today by the number of validators we get a total of nearly 80 extra dollars per day going to the stakers which is nearly an extra 2500 dollars per month aka basically a full ethereum but to run an eth2 staking node you need 32 ethereum the minimum which is an over 83 000 investment who can afford that even by dca well you can get your share of those fees by using an ethereum pooling technology like rocket pool where you only need point zero one of beneath to share in the rewards own that tiny amount of ease and you can take part in the share of the coming staking fees that nobody sees coming cheers viewers i'll see you next time
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