Cash Equities or Ownership Bonds or Debt Part 2

The relationship between Bitcoin and Ethereum’s pricing is often used to compare investment opportunites. For example, Ethereum was 2,002.73 USD to Bitcoin’s 30,360.50 USD at 1 p.m. on April 13, 2023 – a difference of 15.16 times. In the past few years, that difference was about 20 times

My recommendation until The Merge was 75% bitcoin and 25% Ethereum for the invested amount, my updated recommendation is now 50% each.

This is the narrowest differential since May 2021. Insiders have suggested that The Merge is the catalyst for Ethereum to overtake bitcoin as the world’s largest coin by market capitalization as early as Q4 2023.

Investors are still trying to gauge the impact of its merge upgrade that transitioned the network from bitcoin’s proof-of-work to the more energyefficient proof-of-stake

Digital gold is often applied to bitcoin due to its immutability (cannot change a previous block) and resistance to change and censorship.

The foundation of a decentralized, blockchain-based internet – or web3 – is Ethereum.

The demand boom for Ethereum will continue to increase due to the soaring popularity of non-fungible tokens (NFTs), digital art, and media tokenized on their blockchain.

How to Invest

There are about 18,000 altcoins (cryptocurrencies other than Bitcoin). A majority of them will not be around in five years. Many are trading for well less than a penny per coin, so there is a much greater risk in these types of coins. For my clients, I only recommend bitcoin and Ethereum.

For our example, we will use a welldiversified portfolio of $100,000. One percent is the amount we will risk in BTC and ETH

Our initial investment is $1,000 Because of market volatility, we will invest $250 over four months (dollar cost averaging) – a safer way to enter a volatile market.

If you or your clients have a strong aversion to risk regardless of the reward potential, don’t invest in digital assets It would be better to avoid this new volatile asset classification for peace of mind. Also, don’t look at your return or loss daily, as that is not good for your psyche.

To learn more about crypto, sign up for newsletters from https://www.coinbase. com/home, Coinbase https://www.forbes.com/newsletter/ cryptocodex/#694d66cf3534, CryptoCodex, or the Bitwise Investor Letter https:// bitwiseinvestments.com/crypto-marketinsights/the-bitwise-investor-letterjuly-2022

Do not try to time the market as it is too volatile. Be an investor, not a trader

Use the dollar cost average method or set buying parameters on specific dips. EXAMPLE: My last buys and next buy of BTC or ETH will be when either goes below a specific amount. You determine the reasonable buy price or entry point.

If you invest in digital assets and lose all of your money, your invested net worth will go down by about 6/10th of 1% (0.006), based on a $100,000 portfolio

Your gains could be a multiple of 1,000x or more over the long term.

Bitcoin’s price rose 70% during Q1 2023 compared to 7% for the S&P 500.

Since the first year of ownership, I have never sold BTC or ETH. The industry term is “HOLDER.” You buy with no intention of selling over the short or medium term. I am following the pattern of large institutional buyers like Mass Mutual ($100,000,000 in BTC + $5,000,000 in NYDIG), other insurance companies, hedge funds, and large corporations that want a long-term hedge without regard to short-term volatility. They are buying BTC, ETH, and publicly traded or Trust ETFs.

Many conservative companies are buying during the dips with no plans of trading or shorter-term selling and as a way to bolster their treasury assets.

The most notable is business intelligence firm MicroStrategy, which has accumulated 140,000 BTC after first investing in the cryptocurrency in August 2020.

MicroStrategy plans to hold BTC “through adversity.” Core Scientific, BTC Miner Marathon Digital Holdings, Square, crypto exchange Coinbase and crypto investment firm Galaxy Digital are among the largest bitcoin holders.

Countries: El Salvador holds the most Bitcoin, with 2,301 BTC in its treasury. Among others are Finland and Ukraine.

In August (2022), PayPal (about 435 million active users) and Square (about 30 million active users) bought almost all of the newly minted bitcoins plus additional open market buying.

BTC inventor Satoshi Nakamoto, inspired by the Global Economic Crisis, wrote the Bitcoin Whitepaper entitled Bitcoin: A Peer-to-Peer Electronic Cash System in October 2008. He wanted people to be able to send money to each other with no intermediaries such as banks or credit card companies, wire services, etc. The time to send money before bitcoin was approximately four days, costing 6.5% and up. After bitcoin, the cost went close to zero and transferred in two to three minutes.

The smallest bitcoin unit is a Satoshi; there are 100 million to a coin, eight decimal points.

When Bitcoin is spelled with a capital B, it is about the Bitcoin network. When spelled with a small b, it is about the coin

If you would like to download a digital asset glossary, go to https://www.metaco. com/digital-asset-glossary/

BTC is a finite number at 21 million, while ETH is infinite.

The first cryptocurrency transaction was for two pizzas for 10,000 BTCs on May 22, 2010, not purchased directly from a pizza shop, but paid to a friend to buy and deliver the pizzas. At today’s value, it is about $190,000,00 At its high, it was worth about $680,000,000.

There may be a dispute over which government agency or agencies will oversee or control the crypto market since the FTX debacle.

FTX: Their attorneys stated that FTX may reopen sometime in the future as it navigates bankruptcy, allowing their creditors to convert a portion of holdings to a stake in the reopened exchange.

Of the $8 billion initially stated losses, they have recovered about $5.5 billion. Sam Bankman-Fried (founder), faces as many as twelve criminal charges regarding FTX

Learn More: My first course about Blockchain and Digital Assets was through the Digital Asset Council of Financial Professionals https://dacfp. com/.

I then took a more advanced course to acquire the Certified Digital Asset Advisor (CDAA) designation through Interaxis https://www.interaxis.io/.