Best Crypto altcoins to buy in 2024? Best Crypto portfolio breakdown
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What is the best crypto portfolio to put together for this year we’re going to be going over all of the major sectors in crypto layer ones layer 2os defi real world assets gaming and a few others how investable are these and are their opportunities here I’ve gone over all of
The major institutions research binance coinbase many others to put together this video each and every sector will be listed as a Tim stamp down in the description at the end of this video I’ll be going over some portfolio construction as well because if you want to allocate to these sectors it’s
Actually really simple you just choose a percentage of your portfolio and then go into it with you know a few names that you want so we’ll go over how to do that and some things that I’m going to be doing in 24 and 5 as well hopefully we
Have a strong Market which gives us many opportunities to make money we don’t have to be desperate with this we can just be professional about it and make some money so in January 2024 I’ll be updating my crypto investor course all of this type of research comes for
Crypto course members you know before YouTube right so the price will be going up during uh January but what I’m going to do in January when the price goes up and I update the course with all of my latest research I’ll be putting a discount code in this video specifically
Down in the description so you’ll get the old price because I’m making this at the end of December beginning of January so for this video if you’re watching it if there’s a discount code below that means the price has gone up but I will put a discount code Below in this video
To get started uh for you guys and we’re going to start with gaming first gaming is probably one of the sectors that has a lot of interest in it many people are into gaming they realize and understand the opportunity here gaming itself is a huge industry and so any tie up with
Cryptocurrency is obviously very exciting so let’s see what’s happening in crypto gaming right now also some of the opportunities but I think some of the things that we have to be aware of that are still major roadblocks because there are some major roadblocks here right in terms of the amount of Revenue
That can come in because that’s really what we’re looking at right gaming and crypto you can see wait ingame items as nfts okay we can we can understand that that’s an opportunity there may be some trading volumes around that which creates revenue for these tokens there’s many opportunities here uh that people
Are excited about now what I’m really reticent about with gaming is how does a token investment make me an investment return because there’s two different things that we’re looking at here with gaming right the first one is we’re investing in a token that may have value in some way because there’s demand for
It so you’re looking at like an nft within a game right so in-game items that someone either discovered or created and if they create them you know maybe they actually create the nft themselves and sell it so that’s that’s a job for them that’s not really an
Investment now of course we can trade in game items which can create revenue for ourselves personally as well but again that’s not really investing that is working and doing work to create revenue for yourself so again that’s an opportunity but what I’m really looking for is what is a token that can have
Value because it’s earning fee Revenue right and so that’s what I want to invest in so let’s have a look at that so here’s the revenue from a binance research report all of the reports I talk about in this video will be listed below a lot of other links to uh you
Know the bits of data and some of the dashboards I’ll link it all below down in the description so what we can see here is video game Market Revenue in 22 3 4 and 5 so obviously uh four and five is expected tiny in terms of blockchain game Market Revenue versus the entire
Video game Market Revenue now again with gaming you have game developers that create games and they need to make money from those games and so how do they do that well they can create a blockchain that charges a fee for every transaction and so the blockchain itself earns a fee
That goes back to the Token of the blockchain and that token acrs fee Revenue okay so when that token acrs fee Revenue they can return that fee Revenue to investors in a couple of ways the first one is by paying staking rewards and the second one is by burning that
Token and so reducing the supply and then lifting the market cap of the tokens or the price of the remaining tokens now this is essentially like investing in the network uh that earns fees right so I’m not going to call it a business because a network and a token
It’s they’re actually not businesses and it’s not investing in the equity of a business but to be totally honest I would rather just invest in a business and say your your business is earning money from this game and I want a share of the profits that’s not what we’re
Doing when we’re buying gaming tokens and that’s my major thing that I’m like how is this token specifically going to earn a load of money and return that to me right so that’s that’s what we’re looking at by the way up in the top right hand corner of each of these I’ve
Just got a kind of waiting of you know is it a risky investment or not or not right yellow and red means I think it’s more risky in terms of volatile there’s going to be a lot of stuff that does well but a lot of stuff that doesn’t and
During a bull market some things may go up but may not so Revenue seems to be increasing well but obviously still very low so potential opportunity here so let’s have a look at this how these games are developing over time right in terms of what is the benefit of an
Onchain game versus just having a game right cuz everyone plays games and they’re fine with it you have a steam account or whatever you know other accounts and you link up your your payment method with your card you buy the game and that’s fine so what is the
Specific thing about crypto gaming that is actually going to change things and actually move over a lot of the gaming industry so traditional games you can see offchain game server assets and game play subject to the rules of the developer you go to hybrid and fully onchain games where you’re looking at
You know game server and logic are actually onchain now this is obviously still very expensive and so as blockchains get cheaper then people can move over but for right now I think you’re going to be looking at really really simple games right the type of simple games that people play on their
Mobile or something where you can just press a button over and over right on like real like you know AAA games it’s going to be a lot more difficult for them to move over suitable for certain types of games though that is changing with technological advancement so you
Can see there are games doing this right now but they’re they’re very very early on they don’t have many if any users and so really you know we can speculate on these tokens we want and that’s a game within itself speculating on tokens is probably the biggest game of crypto but
When you’re looking at you know games that have a lot of users what I would really want is to invest in a token of a game developer that has many many different games that they have and the revenue from those games in some way is streaming down to this token because if
You’re looking at in-game tokens that are used as money and things like that I think that’s almost impossible to have long-term value right because money within a game then it’s not really money because the money is centralized through the game and so what you’re really looking what I would
Prefer is that you know Bitcoin is money and people use it in these games or ethereum use it in these games but what these games are tending to do now is use their own token as money and that for me just is a red flag because what they’re
Trying to do is just pump up the price of this thing right because their business model is as long as the price is higher of this token we can sell it for loads of money and in the end it doesn’t matter if the game does well because we’ve made our Millions as an
Investor you’re just wanting to invest in a game Studio or developer that has loads of games is a properly run business and somehow earns revenue from that right so there are benefits to fully onchain games is that you have in chain you have onchain assets that can maybe kind of proliferate um amongst
Different sorts of games right so if they’re if they’re using the same uh smart contracts or the same tokens on the same blockchains then I think the real opportunity potentially is to have these protocols underlying that you can actually use these different assets ac across different games now again that
Sounds really cool but how is how is revenue from that going to a token because I need to invest in something I’m not going to speculate on these in-game tokens cuz that just seems ridiculous and it doesn’t seem investable to me right so here are some engin
Or some game engines that are being developed and you can see the year they’ve developed basically the last few years so we’re at stage one and I can’t really see any games that are actually you know Revenue producing large or anything right so this is incredibly speculative in terms of any of these
Tokens how do they actually have a value long term you can see 20223 when these game Eng game engines were developed and I want to have a look at this right evm evm evm evm stocket is ethereum ecosystem eventually so we’ll just say ethereum there so for
Me you know getting exposure to crypto and some gaming ethereum just stands out right because that’s an actual profit uh producing revenu producing asset that I can hold it has big mainstream value it has you know it’s the thing it’s liquid the thing that people want to buy buy so
Evm stands out so throughout this video what you’ll probably hear me say a lot is just buy the layer one cuz it’s actually an investable asset and everything else for me personally is way way too risky and speculative but of course everyone can have their Moon bags
In their portfolio if they want now pimer engine you can see they’re actually on a couple of others as well kadano kadano has a bunch of games that are actually doing pretty decently uh the uh utxo model on kadano is actually pretty good for some of that stuff but
Anyway they’re building on a bunch of different chains but it’s really just evm as you can see ethereum for now um now as you can see here languages are an issue I think within this binance report right here if you want to scroll down and I will link this one because I’ve
I’ve read through this one of the issues that they go what they say is that you know the evm or the um solidity language isn’t really great for gaming and so what may happen is a separation of the blockchainbased languages and then just building kind of separate games on their
Own separate chains that can send assets back to some public blockchain for them to have value because what I really see as the value potentially here is in-game items having value user generated content within games that can be traded and have value there and so if there is
A way to generate re revenue from that that’s interesting but again is ethereum just the play here because it’s the thing that actually generates revenue from all of these smart contracts and everything that everything like that uh so as you can see open source here and these are the engines so the gaming
Industry with crypto is like absolutely Tiny But as we’re getting cheaper fees right so you’re seeing polygon here with their ZK technology um reducing reducing fees down to like 0.001 Cent per transaction that is going to make a lot of game developers come over because there’s a differentiation
Here for having assets that people can actually trade so one of the major types of games that are actually successful now this is data from a coin gecko report right here so we’ll go through a couple of these so the main one right here is farming and Mining which is by
Far away the leader now I have a problem with this is that farming and Mining is essentially these game developers kind of trying to get interest in a game by basically paying you money so the way it works is that you’ll have a game developer and they
Will say come and play our game and you can mine and farm tokens for free within the game and obviously they’re creating these tokens out of thin air and you know maybe they have a market for them and they try and get the price a bit higher to make these tokens worth
Something but essentially what these gamers are doing is saying if we play this game we can Farm These tokens and make some money and then just sell them now of course that is not a reliable long-term business model the way it’s working right now because we’re so early
In crypto gaming and you know there’s just not a lot of Demand right the the supply is easy enough that gets worked out but it’s actually finding real demand that is the the difficult thing what’s happening right now with farming and Mining games also with move to earn
Games as well what they’re doing is creating a token for free and saying come and use our stuff and we’ll give you these tokens for free and then people either you know buy them mostly they just get the tokens and then sell them for actual dollars like stable
Coins right so this is a very classic business model a venture capital type business model and Uber did this same thing as well right so for the first few years when Uber started they were very cheap and they wanted to get market shares so what they did is went out into
The public markets they sold a lot of equity in their company and they raised a ton of money now they used that money to uh essentially give you fairs that were unaffordable so they would pay the drivers and they would give you cheap fairs and they would make a loss every
Time you took a ride and the way they paid for that is going out into the open market selling their equity and getting loads of cash once they had a huge market share they then turned the screw and Uber is now way more expensive than before because their company wants to
Make a profit so that’s what’s happening right now with mining farming move to earn and basically a ton of these applications right is that now what they’re doing is instead of having to go to the market and say we’ve got a good idea give us money for out for Equity
Within our within our company what they’re doing now is just creating tokens out of thin air right and so they’ve kind of skipped the process of having to raise equity in their companies and actually have an idea that may work now they’re saying it doesn’t even matter if our game works it doesn’t
Even matter if our app works cuz we’ve literally created these tokens out of thin air and we’re trying to make the price higher and we’re giving them out to people and you know we didn’t even we didn’t even sell any equity in our company for this right so that’s the
Problem I have with farming mining move to earn is that these you know may just collapse because the business model you know doesn’t exist right now when you take the token incentives away why do people want to pay for this stuff right most of web 2 is Advertising based and
So if you’re asking people to pay for transactions or things you know once the token incentives go away do you actually have any reliable business right so those two not great for me um and of course as token incentives go away they may move down now card games right here
Makes a ton of sense to me this is like perfect for crypto because you have potentially all of these cards or other characters as nfts what do people do with card games they play the card game they collect the cards they trade the cards that makes unbelievable sense for
Crypto because now you have you know these cards that you can earn trade Swap and you know that you are own them and you can maybe swap them um anywhere else on any exchange that makes a load of sense to me and a massive use case for
Crypto I believe the other ones you can see unfortunately we’re just nowhere near having more complex games inte integrate uh crypto it’s just too expensive it’s too slow uh the size and scale isn’t there for right now so that’s where we are when we’re looking at game fire addresses I’ll put some
Details below where you can look at the top games as well and the you know unique active wallets or the weekly active users you can see all of that data so that will be in the gaming section down below alien worlds Farmers World sweat economy again these two you
Know when they take token incentives away is anyone going to use it right remember like move to earn and stuff like that you’re paying people these tokens to walk around and then the tokens are gone and literally no one uses it right I think the move to earn
Um on salana you know during a bull market people get excited and they’re getting paid these tokens that are going up in value you get people come during a bare Market everyone disappears token goes down like 90% and you’re you’re stuck in this thing so that’s why for me
I put red here and the game tokens themselves you know they are so risky because they don’t really have any Revenue model to sustain the value of them over time now it also makes it extremely volatile in Bull markets as well because you have the potential to
Go viral where you have people that are earning tokens to bring on new people and you have this earning thing sounds a little bit like a multi-level marketing scheme right which is bad like a Ponzi it’s like hey come and use this app I’ll earn some fees and this and it goes up
And up and up and then bam it goes down that is unfortunately the model of a lot of these which is why I mostly stay clear of this type of token it’s just too risky for me and I’ll go and buy eth or the layer one right so it’s up to the
Individual but just to have a look at this then you’re looking at gamey addresses and transactions so addresses and transactions on on these block chains and as you can see what is happening if I get myself out of the way you can see that we have some uh chains
That are specifically gaming centered and that makes a lot of sense to me because you cannot have uh you know these uh kind of general purpose blockchains like ethereum and Salo and binance smart chain having a ton of games on there clogging up transactions for you know Defi and stuff like that
So yeah it makes a lot of sense to me if you have three layers of risk you have layer one coins where the most important smart contracts and financial transactions happen they have some exposure to everything in crypto then you have the next layer up which is kind of like on
The layer two which is like a mutable X and wax which is like we’re kind of a uh an ecosystem where we’re putting money into games we’re launching those games they all happen on this kind of blockchain ecosystem it’s not really a blockchain as such it’s just kind of
Like a a network right a bunch of networks that they have on these layer 2os and hopefully all of that kind of gaming that happens does flow down eventually into some fee revenue for those tokens so again this really needs to be you know kind of
The layer one type thing which is like that’s a kind of big store of value Asset this is more an investment kind of in a gaming work which kind of makes sense as well so you’re going up in the risk there and then obviously you just have in-game tokens and in game in-game
Items which are just like super risky you know they’re going to pump and dump for sure during Bull and Bear markets and you know maybe that’s more for speculation you know maybe you can trade them if if you’re very specifically good at that um but for you know investors
Usually they’re probably going to go towards here but you can see you have specific chains that do have more exposure to gaming if that’s what you want to do now we come to some of the potential downsides and issues for games the major issue I see here for game
Coins is that well firstly they don’t really earn anything right now right there’s no Revenue model there’s there’s virtually no Gamers so if you’re investing in something it’s like well I just hope that I hope that this game goes well and maybe gets a bit viral
During a bull market and so that gaming token goes up the other side of things is that of course like I just said that Uber model is that a lot of these games are issuing tokens simply to give out to people for free right to play the game
And so if you want to play those games and farm those tokens that’s one thing you can do but if you’re investing in this like it’s an investment just know that the game itself is literally just pumping these tokens out into the market and giving them away for free so why
Would you buy something that’s being given away for free and of course these tokens if the game doesn’t go off are going to be worth zero whereas if you go down the risk you know the risk curve a little bit you’re looking at blockchains that can potentially just earn some fees from
Games that do eventually go viral right so that’s an issue so I’m going to go through this as well which is is a recent launch pad on uh binance I think some of the backers of Ace this token come from 10 cent which one of the biggest game uh developers in the world
Earn huge revenues from games so they know what they’re doing um again I don’t want to promote any of these tokens or say they’re good or bad or anything I’m not going to do that in this video I just want to talk about sectors to give some overview of the risks here cost
Issues of games is Major no one wants to pay and so the costs of a game the blockchain transactions have to be taken away from the end user that has to be free for them and has to be paid by the game developer distribution issues because none of these games are in the
Big distribution platforms that is a major issue app stores as well don’t really like them third for third party platform issues and trust you need mainstream adoption to actually get a game to have value and these third party platforms just don’t really like them and and there’s just an
Issue here with games and hacks and everything else and Regulatory issues because what you’re doing right what you’re actually doing is creating games with some tokens inside and are they money or you know in America there’s very heavy Securities regulations and so you could be stepping into like Uncharted Territory which can really
Make an issue that’s why these in-game tokens are so uh kind of very very um unfortunate in the way that they come about because they don’t want to break any of these Securities regulations and so they have to make these tokens have value in some way but the link is
Incredibly spurious about how they kind of earn and sustain some value over time so a lot of the way that they use these in-game tokens you can see in-game spending and earning so you buy this Ace token right just spec specifically for Ace but a lot of games have this you buy
The game for spending or earning you use to buy for in-game items and tickets and things within the game so that they’re saying that as long as the game is popular there will be demand for this token because they need to use it within the game to buy stuff you get very close
To basically having this as a money and that’s an issue because it is not money this will never ever be currency because there’s only one currency in each country which is the um you know the legal tender of that country which you can spend you can earn and spend without
Any tax liabilities these tokens may end up as having tax liabilities within the countries so you’ve got a gamer right who who you know it doesn’t know this and is spending and receiving coins and suddenly they have this tax liability at the end of the year and they’re like
What on Earth so that’s what I’m talking about regulatory issues is right is like if this is not money but it’s being used in game as money and that is a major major regulatory issue and that is a major downside of these tokens it’s like these can be zeroed overnight by the
Government saying any in-game tokens used as money is essentially has a tax liability on it the other thing that it’s used for is staking and governance so again it’s a little bit like buying the equity of a a company right because when you buy Equity you have the you
Know governance rights you can go and vote at an AGM but again this is not a company it’s like a blockchain so again it doesn’t really make sense as to what are you going to do here you’re going to vote for staff and you have like five
Coins and you you like voting is just ridiculous anyway because there’s like three or four people that started the game that actually have all the tokens and so voting is a bit of irrelevant right and staking you know again you’re paying people a reward to stake but most
Of that’s coming from inflation because the game doesn’t make any money and so that’s actually an investment as well like if the game did blow up and actually made re very good revenues and paid people like income from that well that again is an investment and if you
Invest and get rewards you have to pay tax on the profits that you make but you’re also spending that thing in game as well and so the actual you underlying for this is a total mess in the states in the UK and Europe as well like what a headache you
Buy this coin you spent it you’ve earned some money it’s a tax headache and it’s an investment nightmare but they’re using it for all of this stuff and so that’s why I personally feel these game tokens are completely uninvestable for me um but again gaming is a major major
Industry it will get bigger and so for me personally layer ones that just have some exposure to that or even layer 2os is where I would want to be but that’s my thoughts on crypto gaming the most popular crypto narrative in 2023 for coin gecko unbelievably is artificial
Intelligence this is something that uh I believe is not investable within crypto to be totally honest and the reason for that is because what we can see is that AI requires a massive amount of investment and the Silicon Valley companies have already made their moves Google is working on this they’ve got
All of the data you can see anthropic which is potentially being invested in by Amazon and you have open AI very heavy links with Microsoft and this is a huge growth business and I don’t personally see a lot of link up right now between crypto and AI I think it’s a
Buzzword I think it is being used to essentially pump tokens and sell something that just isn’t really a business for right now um so crypto AI I think is somewhere where I don’t want to invest a at all I understand that during bull markets narratives you know pump
But I don’t want to be I don’t want to be in that right I’m just going to invest through the bull market I understand how bull market works and the macro cycle moves prices and risk-taking I’m very comfortable there but in terms of specific projects with AI these
Things are incredibly speculative and to be honest reek of penny stock pump and dumps this is my opinion there may be some some decent projects in here but if we look on coin gecko this is the AI sector what we can see here is that you know there’s a couple of projects right
Here now render I would put more into dpin or DM which I’ll talk about later rather than AI um but what we can see here is that no there’s a couple of market caps that are over a billion dollars but if you look at the 24-hour traded volume some really big red flags
Here the first one is a billion doll market cap asset trading $5 million in 20 24h hour volume is extremely uh alarming this potentially shows that this asset is well firstly $5 million is a tiny amount of volume for something that apparently has a billion dollar market cap that’s worrying that
Shows me that there’s no real price Discovery here now of course these things can pump hugely in Bull markets and if you just want a moon bag for this stuff that’s fine but I see no real business use case here and of course most of crypto doesn’t and so we’re all
Trading on speculation I get that um but I’m just much more comfortable in other things right so AI as you can see it really falls down the list in terms of market cap and you’re getting some some projects here that you know essentially what they’re trying to do is try and
Link up a market for you know AI or a market for some sort of compute you know through a blockchain and I just don’t really see the link up there I think how it works is is that a company has a product and the market works by paying
The money for it or not if it’s good or not and so just having an AI blockchain it doesn’t make any logical sense to me um and so I really don’t want to be anywhere near Ai and so that’s that’s my opinions on AI um for now this bull
Market I’m absolutely going to stay clear of it personally also in the top three of this report were meme coins or that side of the industry so I’m going to talk about this because you know whilst I’m not going to invest in any mem coins it’s the same thing again it’s
Speculation in a bull market you have things that go viral or basically you have people gambling trying to get other people to gamble price can go up and you can either make your wins or your losses there I think we all know that mcoins are simply a game at the casino right
Overall and eventually they’re going to run out of you know of steam because eventually there is no Community here maybe they can be integrated into stuff but there’s no real inv investment use case it’s just yeah I’ll have a moon bag of that and that’s fine right but what
Is happening through all of this this kind of industry here is it is ultimately benefiting the layer one coins any activity that happens on a layer one is going to benefit the layer one coin and so nfts are going to happen or you know Meme coins whatever they’re
Going to happen but eventually what happens you know is that these real assets come on and and that’s the real use case that we’re going for so personally right we can see here that nfts and things we know that these are products sold to customers nfts are a
Product sold to a customer that’s not an investment I cannot invest in that I can trade those products if I’m in incredibly adapt at that but they are not an investment and I’m not going to invest in them right so what we need to see here is
Is there an actual way we can monetize this in a sustainable fashion and which blockchains are going to do that so what some notes Here ugc user generated content can go extremely viral why these networks can have value is because the same as social networks it is an a it’s a it’s a
Singular thing that can have an exploding use case so Facebook doesn’t right Facebook doesn’t create content YouTube doesn’t create content they’re the biggest content providers in the world because they’re a platform for everyone to make their own content can we do that with blockchain as well can
We have user generated content right so nfts in-game items creation of something that you sell right maybe uh you you’re selling your work so someone in another country is making editing videos or whatever and they’re just using blockchains to get payment and to have um you know selling their product and
Stuff like that that makes sense to me that’s a long-term Revenue generating use case ugc is really important if there’s going to be a blockchain that has an application that goes viral and people use it and generate their content that can really get big so that that’s
Definitely a use case what I want to look at more is who’s providing the tools for the economy to thrive these are digital economies at the end of the day and you need tools so that you can explode to a billion users who are actually generating revenue and GDP for
That economy I think It ultimately benefits the underlying currency of that blockchain that’s where I’m comfortable mem coins are simply just a roulette table so what we can look at here this is Bitcoin ordinals uh that allow inscriptions so different to nfts which have typically been a contract on
Ethereum or other smart contract chains and then the nft V visually like the jpeg is stored off chain on a different server on like ifps so you don’t actually own that jpeg you own the contract of the nft launch inscriptions actually etch uh you know a data into a block and
So it is physically there in that block forever now that’s pretty cool because that can have a lot of use cases right if a app could be made that simply allows anyone with a wallet to create user gen generated content and inscribe it onto a blockchain that could
Potentially be something that is you know something very beneficial for maybe that app and the blockchain that it’s on so what blockchains would I want to be investing in for that I want to be in the chains that I know are going to be around for the next 100 years right
Because if people inscribe stuff on some weird chain that isn’t popular it’s not going to be very valuable so again value for me is important ordinal and inscriptions are blowing up so again it’s a speculation use case I don’t want to be in that end of stuff but I think
Generally if you have a blockchain like Bitcoin and a lot of Bitcoin Maxis are extremely up in arms about this and they hate it Bitcoin is an open public network there’s going to be a ton of stuff on this network that you don’t like right the internet itself has lots
Of content that is illegal or generally unpleasant right but it exists and no one says the internet should be shut down with Bitcoin you’re looking at this thing potentially being that big right it’s money for the world it’s going to have a ton of stuff on there that people
Just like I don’t like that but that’s fine right because that’s just it’s a mirror to humanity it’s a blockchain where people can describe stuff in any case this is a use case maybe it will die out we don’t know but it’s good for the underlying chain that human beings
Are seeing this and wanting to experiment and the first stuff’s going to be a joke but over time people can say hey there’s going to be a spark now I think the most reliable chains Bitcoin and ethereum are going to be the most desirable to put things on because
People know they’re going to be there forever so ordinals is an exploding use case I don’t know if it’s going to be uh exploding and you know getting larger it seems like there will be some reason to inscribe things many important documents are being inscribed on the blockchain
Right now uh including some things that would otherwise you know be kind of blocked from the Internet or stuff so this has a use case don’t worry about the jpegs and the memes this is important and this is why Bitcoin is here so this is pumping off you can see
That um this is just inscriptions as well so you can see all of this data I’ll leave the June analytics dashboard down in the description so you you can have a look at this yourself but you can see things are happening a use case for Bitcoin fees generating a blockchain has
To be sustainable fees have to be paid so that either stakers or miners get that reward and is it is a sustainable blockchain over the long term so um I think this is good in general now you can see everyone’s getting in on the act so you have kucoin here nothing against
Kucoin or the KCC chain but again they’re they’re doing inscriptions on their chains as well so again you may have chains that have you know low fees because people think yeah it’s just a you know it’s not it’s not Bitcoin right it’s not going toti stick around for a
Long time but you know you have other chains that you know have their their products on there and they may be um you know fairly good for them but the major valuable use case for me is the top chains right it’s Bitcoin and ethereum to actually inscribe stuff but Bitcoin
Certainly because it is that you know it’s the number one chain you know it’s going to be around forever and so inscribing things on it may be actually pretty valuable talking about user generated content as well this is a new project from binance now again I don’t
Want to promote this project I’m I don’t work with any projects ever or want to promote the tokens at all but just want to look at the sectors to invest in here or you know things that are happening on blockchains right so I think this is happening on B&B chain this is user
Generated content so an application that lets anyone create an nft and have that on the chain and you can also use some AI tools to create this content right so if you want to create um you know some picture that’s you’ve seen all of the you know the kind of user generated AI
Content is extremely good right so how do we get that onto a blockchain once you have it on the blockchain you can actually sell it now this is different right because you have ai from these companies which is fair enough and so they’re they’re big companies with big
Investment and they have the data and they have the AI uh language models that actually create this stuff that’s cool but as an individual which is where you get this huge scale is can there be applications that let individuals use the AI to create the content they want and then sell it now
You can’t do that without crypto it’s incredibly difficult because you’re going to create the content and then you don’t have the right you don’t have the nft of it and so if you put it online you immediately lose ownership of it because people just copy paste it if
They want right I know you have copyright and there’s there’s massive um issues here with copyright as well and everything like that but as you can see a tool that lets anyone create stuff with AI then have it as an nft to sell and earn you know crypto dollars
Instantly for that either the lay on coin or a stable coin that is allowing the the crypto economy to grow and flourish and that’s why I think it’s important again you don’t have to buy the apps you can buy the layer one coin which may be a better investment overall
Is just the thing that underlies that economy another huge part of the industry is defi very big and there’s a lot of different use cases here so I’ll split this up within kind of Defi and then real world assets which are obviously you know a narrative that is
Growing Steam and is actually you know actually growing users this is the part of the industry that I’m much more comfortable with being you know a you know qualified investor and having worked in the industry so you know I understand this a lot more and it makes
Total sense to me uh now what you’re going to have here is protocols that uh essentially let people trade right so trade tokens or lend out tokens it’s pretty much it you have trading you have lending uh and then you have some other things like you have perpetuals trading
Or futures or derivatives trading so that’s a big era as well uh and then you have bringing real world assets on chain like treasuries now one of the biggest markets in the world is is uh you know the US Treasury Market or other types of national debts you know like Euros uh
Pounds every country will have their own debt is their own debt that’s trading did a lot and so obviously bringing that on chain is going to potentially reduce fees make things more transparent have a lot more data it’s a massive use case it makes total sense to me is it investable
Though generally because there’s a difference between the layer one coin and I’ll look at ethereum here because most defi is on ethereum you have ethereum which could potentially be this massive worldwide um credibly neutral asset I won’t call it money as such but it’s a huge worldwide decentralized non-government asset it’s very very
Unique versus a defi protocol which is basically a business right yes there’s lots of differences here but it’s basically a business where you have a group of developers who develop the the protocol try and make it a little bit better make sure that people are using that protocol so the token investment of
A def project project is an investment within that protocol making fees that’s fine that that’s great if they make fees then the price will go up right of the token however will that outperform just holding the layer one coin because as of right now it hasn’t and so defi is great
And the biggest use case in the world for crypto is just being like this huge financial e system right Finance itself underlies everything else let’s have a look at some data here and how defi tokens themselves haven’t really outperformed just buying the layer one coin so this can Thrive outside of the
USA for right now in my opinion um now a lot of issue outside of the US is that most countries or most companies need dollars because most debt is issued in dollars and so there’s a massive demand for dollars from people and countries and companies outside of the US dollars
That are outside of the US banking system are known as Euro dollars it just means foreign dollars non US Dollars and there is a massive euro dollar system in place around the world for these dollars for these dollar denominated liabilities that were created by non-us Banks gets a
Little bit complex but basically you have a country or a company that wants to raise debt and so they do that but the people you know buying that debt say you need to pay us back in dollars because you own the money printer in your country and you could just print
Millions of of your currency to payers back debasing the currency actually that’s what the US is doing right now but we won’t get into that so defi outside of the US makes massive sense because you have a blockchain accessible worldwide you have Euro dollars which are stable coins like usdt usdc
And you have the ability to trade and lend them with instant settlement and you don’t have to worry about the bank saying sorry we’re bus now or the or the government of a country saying yeah we’re just going to print billions of of these you know yo-yo coins to pay you
Back definitely can Thrive inside the US it’s basically banned it’s banned until 2024 until the election and things may change until then defi is absolutely banned within the states maybe ethereum and Bitcoin get an ETF but defi no way and and the regulation here is going to
Be insane as well because it’s coming they want to regulate everything they’ve regulated the banks so there’s no growth in the banks they’re going to regulate this very very heavily because they’re so afraid of losing control of the money supply and the trade and settlement of dollars wherever they are in the world
That’s the downsides of defi it’s just getting you know getting crushed and crushed and crushed in the states where most of the capital markets are these are actually pretty profitable businesses is because it’s just charging a fee like when you trade on Unis swap
You pay 30 basis points as a fee and you know the profit the protocol can be extremely profitable because it’s just software they do underperform the layer one Quinn which will get on to in a second so let’s have a look at some data this is I think Unis swap right here um
And it’s it’s it’s an extremely profitable chain now Unis swap the token doesn’t ACR any fees so it’s basically worthless it’s worth about5 billion in the market but it doesn’t acrew any fees now the reason why it’s worth money is because people are buying it now in
Anticipation that in the future it may pay some fees back to the Token but it doesn’t now and so you know it’s just like ah do I really want to put money into that I used to have a Unis swap I don’t anymore um so as we can see here
You just have all of these um trading pairs of different tokens most of them up against Euro dollars or stable coins usdc usdt Bitcoin ethereum these are Big assets that people want to trade and they trade them and they pay a fee it’s not it’s not more complex than that
Right and so if you’re the biggest exchange by volume then you’re going to be pretty profitable as a business now RVE as you can see here I believe some of the profits that RVE makes does come back to the Token um but you have to check that specifically RVE is the
Biggest lending protocol so you have an asset like ethereum you can take a loan against it and you put the ethereum on the uh application as collateral if ethereum falls in value then they’ll just take your ethereum and sell it for dollars to pay back the person that gave
You the Dollar Loan um so you know very effective for right now R is over collateralized lending um so if you want to buy if you want to borrow $10,000 you need $122,000 of eth to borrow that uh you know $10,000 so they have um you
Know an amount of um money there that they can liquidate in the event that price is Crash total unique user 20,000 it’s not a lot right very very very small but it’s valued at a few billion dollars fully diluted which is a pretty big market cap this is actually a very
Very profitable protocol especially during bull markets that’s great but again there’s just a lot of downsides is it going to be regulated out of existence um you know also when the market gets big enough the big players are going to come in right Black Rock have said that tokenization is the future
They are clearly Making Moves In this space right and so when the market gets big enough to actually mean something and be pretty profitable the big players are going to come in and Crush all of these names now ethereum Bitcoin these big networks are like public and
Necessary but a defy app it could get crushed if black crop come in and so that’s one of the issues I think there’s always going to be this split between what I would say like onshore versus offshore so onshore Black Rock Fidelity you know vanck all of these guys
Developing onshore stuff which is like tradire regulated and then there’s going to be offshore which is like RV and the other bits of defi which are always going to be slightly you know to the edges and you know for kind of non us and so you know obviously the Internet
Isn’t on or offshore but the users and the and the the liquidity and the money flowing through is going to be kind of regulated versus kind of semi-regulated and kind of we don’t really know what’s happening right so I think the big use case maybe just black rock infidelity
Coming in here and saying we’ve got all the volume we’re using ethereum to do this stuff but that’s it so that’s why I think defi apps again are risky so you have rwa real world assets um these D5 projects are small businesses and again nine out of 10 fail
Or if the business go goes very well they’re going to get crushed by the big players real world assets meaning dollars and other fat currencies issued on chain also treasuries and other government debt issued on chain you’ve seen a lot of uh corporate debt issues on chain as well so green bonds and
Things like that so a company needs to raise money they issue bonds to investors on the blockchain so you own the bond you send the stable coin to the company who uses that and you get the bond in your account so again I see a big difference here between onshore
Versus offshore there’s going to be some issues that just happen directly on chain but the most the biggest amount of volume I think is going to be essentially using uh some public blockchains but a lot of just what they call Private blockchains which is basically just private databases run by
The Banks right because really you know maybe it goes on chain maybe maybe they do like a layer two on ethereum maybe but they don’t really need to right if you’re in Goldman Sachs or anything you’re you’re a client that wants to invest Goldman Sachs has the company
They can just link you to up directly and they don’t really need to use a public blockchain so these are Big you can see the real world use case growing these are uh tokenized public Securities so a lot of this what that means is like debt right you can see there’s bonds the
Asset type is bonds a massive Market potentially coming on chain you’ve got t- bills here mostly t- bills t- bills are a massively liquid Market there’s huge demand for them if you can reduce transaction fees or you can make it easier for hedge funds to just buy and
Sell straight away makes a ton of sense they get their dollars into these T bills they get the revenue straight into their account it makes sense you can see this up and to the right all right so tokenized issues are what 5 600 billion million sorry tiny absolutely Tiny But
Growing so yes it’s a good industry for me you can see a lot of these individual apps right here so you know Ono here you have Mountain which is uh essentially a stable coin that you can invest in and you get the yield because the stable
Coin is invested in t- bills which pay a yield about 3 4% right now and uh you get that 3 4% so it’s basically like investing in t bills so again offshore invers onshore this is available to anyone so if you’re just a normal person
In a country that has no access to this this product you now have access to it and so that’s obviously a benefit to proliferate the access to investing to more people in terms of the big you know the big Banks and things like that I don’t think they’re all coming on chain
And using some protocol they’re going to do it themselves a lot will be offchain some will flow on chain so defi is massive it is um making Mak it easier for individuals to earn interest on their dollars at the actual rate that’s paid so Banks take your money they buy T
Bills they get 4% and in your checking account they give you nothing well with crypto that’s going to end where if you have dollars you’ll be getting the the rate the real rate at all times so that’s going to be passed through to you maybe with a small clip out of it right
So yes this is a massive massive sector a lot of these applic may stay small or become medium which is fine a lot of them are valued pretty highly right now in relation to what size they may get to but again the layer one coins like ethereum some of the
Other um smart contract chains are going to benefit and we’re you know in a big growth phase you can see that happening right here so this isn’t going to stop because there is demand to earn yield on F currency that currently doesn’t earn yield defi apps have tended to
Underperform the layer one coin this is unis swap versus eth so Unis swap valued in eth down this is RV valued in eth down this is pancake swap which is the biggest uh exchange on the B&B chain although it’s multi-chain now it’s pretty much the second biggest exchange
This is pancake swap valued in B&B coin down and this is injective valued in dollars I couldn’t get it versus something else but injective uh is actually had an alltime high injective allows for cross chain swaps between um assets from different blockchains which is doing pretty well so it’s a mixed bag
Overall what you could say is if you just invested in eth you would have outperformed most of these defi Investments now we’re going to look at deep in or decentralized physical infrastructure this is happening on a bunch of different chains and it’s something that crypto allows there is a
Lot of risk here as always um but potential so as we’ve just gone through defy if you want to know how to use dii how to use wallets how to set yourself up with crypto how to actually take advantage of you know buying government debt with your dollars rather than um
You know nothing and having in your checking account crypto investor course has 300 videos going through everything in crypto including getting yourself set up with wallets how to use defy applications step by step you can see all these videos here uh and just how not to get rug pulled or wrecked with
Some of this stuff right so you can see defi here going through it um wallets how to use them all my updates and research also come for free for existing users for all of time we have a great Community here where people ask questions and get answers so again link
Below um I will have a discount code uh in the description when I update the course because whenever I update it the price will go up um but I’ll give you guys a discount code that takes it back to the original price because i’m between 2023 and four right now anyway
Details all down in the description so dpin which is kind of new um and like coinbase say here some potential but for right now like most things in crypto no real users no real Revenue so you’re taking a punt on something that may or may not work what is deepin so what
They’re trying to do is use the benefits of crypto to essentially have payments between people and networks that are easy through stable coins and other tokens low cost where you can basically rent out something that you own to other people that want to use it and of course you
Get payment through having a blockchain wallet in your account tied up to that Network and when they make payments for that thing you get the percentage that’s owed to you and you you you can’t really do this without crypto right what happens now is that you have a
Centralized Authority uh you know like a business right let’s say like Google or whatever and you know money comes into Google they pay you a percentage out you know but what whatever it is you know cross border it’s it’s messy and it’s slow and everything so with crypto
They’re trying to say hey if you want to rent out something that you have um you can do that and it’s very low cost and it’s instant and so it it does have some potential but again these businesses are highrisk small 90 90 plus% failure rate sell the use of
Your own Hardware use a crypto Network to receive payments the problem I have here is that does the business model really work I’ll show you some examples here again I don’t want to advertise or promote any tokens to say that they’re good or bad um because I don’t work with
Them and you know they’re probably going to fail that that’s the that’s the you know reality of this but what I want to know is does this really have a business model model and demand past the first phase of kind of Interest so the the way that capitalism works is
That you have a group of people that specialize in doing something and they become so good at it and they use economies of scale to bring the price down so much whilst still making profit that that thing benefits other people those people that are specifically good at doing their thing earn Revenue
Themselves and are willing to pay money to someone else because they’re creating a product or a service that’s so affordable because they’re Ultra specialized deepin basically scraps capitalism in the way that it works and says some ragtag bunch of people can you know stick something in their house and
Maybe someone will rent a little bit of it so that’s the the downside for me is like is this actually a real idea that actually made makes sense and it’s going to be large scale because a lot of these tokens are valued so highly that they’re
The kind of wrong price they’re kind of priced wrong for how risky they are they should be like 90% cheaper than this now maybe you want to go into bare markets deepin is very new and so again it could pop off during a bull market if you’re
Really interested in deep in it’s still so new that just wait till the next bare Market where everything’s really low and maybe go in so that’s what I would say after the token incentives run out is there real demand so let’s have a look at uh some things that are happening so
One uh example of this is render very simply distributed gpus so if someone needs to do something with a GPU and they need to rent you know compute um they can do so by using the render Network people have the gpus and they can rent out use of the them to
People that want to buy and that goes through the render Network kind of makes sense I get it for me if you’re a company that has a demand for gpus or whatever are you not just going to Amazon web services or one of those who are absolute experts in this they have
The best data centers in the world under underneath Mountains they’re cooled they have great economies of scale that works having this is is an it’s an issue right you can it’s like well who’s going to who’s going to rent out their GP is it reliable can I reliably get the amount
Of compute that I want at all times because these ragtag bunch of people may not rent out it may be very volatile in terms of how much computer I can get how does it work right so that’s the issue that I have do you need a blockchain for
This do you need a Marketplace on a blockchain for this or do you just say we need to rent some computer just go to Amazon web services or something else so that that’s one of the issues that I have um now another use case for this is
Again I don’t want to promote any of these coins um another use case of this is decentralized telecom telecommunications networks so this is happening on salana it’s also happening on kadano that I know of where you’re essentially saying we’ve got some uh telecommunications nodes they have
Signal and you can download an app and then pay for the signal from these noes that makes sense now why don’t these companies just buy the nodes themselves and put them up everywhere well there’s obviously a lot of issues around that so what they’re trying to do
Is say you buy the node you put it up outside and if people use it and they’re on the network you get some money so again this is like is this actually going to work at a large scale because of course if you go into an area where
There’s no node what happens well the way that helium do it is essentially you you use their nodes when you can and then if you can’t use any nodes then you just flip over to like T-Mobile or or one of the other networks like AT&T because it’s so small right now and
There’s you know there isn’t signal everywhere so like is this actually going to reach scale and the answer is I don’t know but it’s probably unlikely there’s some information here about where they actually are so very very small scale right now I think Miami is the one that helium network is doing you
Know again not a lot of hot spots to to actually you know play around with you can also see that this one here so these are apparently hot spots for helium um if we look at the revenue they generated you can see in the past 30 days you’re looking at around
12,735 iot and so when you’re looking at the price of that um you know you’re looking at a tiny amount right like I think it’s $3 $40 or something like that so that’s that’s the issue right is that you get sold on this idea like you’re
Going to make money by buying this thing you just put on the side of your house and then no one really buy no one really pays for it you don’t get any Revenue so yeah I just think this is potentially something that could happen but once more if the business gets big enough
Then you know potentially other bigger uh you know companies get involved with this and try and make money off of it but I just feel like scale is the thing that drives prices lower not the rag tag bunch of individuals having these kind of sparse things around so it’s the
Business idea I’m not sure the implementation works out you can see coinbase here as well saying uh moreover deepin projects have been focused on how to incentivize participants to supply the necessary Hardware but only a few have started to tackle the financialization models of driving demand
That’s a nice way of saying none of these like things make any money and there’s not enough demand for their business um and they’re just giving away tokens over and over and over again and so you know eventually that has to stop right and so that’s the issue so I think
Deep in for me red it’s a narrative that may do okay in terms of bull markets lots of prices go up narratives pop off but I think you know if you’re interested maybe you can wait till the next spare Market to see if something else maybe comes about um but again this
Is the experimentation that happens on the layer one coins which are like a diversified bet on the things that do actually succeed now we’re going to touch on layer twos and infrastructure within crypto so what we’re looking at is networks that are much more centralized and actively managed but
They are a part of the stack because you have the layer one chains which are supposed to be large distributed probably expensive and slow because they focus on security the most uh and then you have the infrastructure on top which is providing easy products and services to vendors so you’ve got Starbucks that
Are working with polygon right they’re not blockchain based they don’t they don’t care about that what they want is you know a dashboard where they can make nfts or or do something maybe they want to accept crypto payments and so they need an infrastructure provider there
Right makes a lot of sense pretty decent long-term business there’s going to be a few Big Winners um as most Industries again if the if the use case and money to be made gets large enough what is stopping Amazon Google Etc uh having some of this Market as well right saying
These blockchain exists right so ethereum exists we can make layer toos right we can have these networks we can do that maybe they do it and so again these businesses get crushed but I think some of these businesses are big enough now where they’re like actually um you
Know they’ve got a lot of the tech they’ve got a lot of the kind of mind share and so maybe these uh businesses can do well what I want to focus on here is that layer 2 coins and infrastructure they are not money in any way like a layer one coin
Like like uh Bitcoin can be worldwide money these things are not and so the only way they have real value long term is by charging fees to customers right and earning some money and So eventually they’re just going to be valued on how many customers you have what’s your
Revenue run rate right what’s your daily active users uh and you know how much money you’re making from that now you can say that about L ones as well the only way they have value is if more people use them I get that but these things are way more businesslike so
They’re going to be valued more on the revenue side rather than Bitcoin which is like to store a value and so it’s it’s a different it’s a different kind of valuation model so infrastructure and layer to they do have to provide some infrastructure and earn some fees so
They’re not money and that’s why a lot of them I would say are overvalued in terms of from how much money they make now they’re valued very highly but of course the growth is coming um so rollups as a service you can see this binance report I’ll link this below what
Is this so you have layer twos on ethereum trying to make it cheaper makes sense this is where a lot of the applications will live and so you have like a cloud service Amazon we Services one of the best businesses in the world massively profitable makes Amazon
Huge this is what these guys are doing on a smaller scale for ethereum is saying you want to develop on ethereum you can use our rollup optimism you can see right here has a stack a network stack that is being used by binance and coinbase and I think biit they’re
Developing layer tws with this technology stack makes a lot of sense there um Bas is obviously coin bases layer 2 you have a lot of different ones right here here you know stocket um Loop ring you know a lot of these are developing these layer tws on ethereum
Where people can use some of that technology and then use it to their advantage so this is really like a B2B type thing where you have a network stack you have the ability for these businesses to say look we want to get into crypto we need a network we need
The ability to do something we’re using you because the layer one ethereum that’s you know this massively uh expensive Diversified kind of thing you know we just need the Amazon Services of crypto right so one thing is these are pretty successful uh networks right now if things get bigger I am sure that
Amazon and others are going to come into the business they’re not going to come in until the business is so large that it’s actually makes sense for them because they’re not going to come into a small business but some of these networks I think are just going to have
Uh a decent chunk of the business because they’re crypto native right so you’re looking at arbitrum optimism polygon you know the ethereum layer 2 stuff right not actually that many businesses in this polygon optimism arbitrum you can see all the data here we’ll have a look at
This um this is uh rollups as a service so we’ll look at decentralized storage Again part of the infrastructure layer and things that need to happen so binance uh this report which I’ll link below you know they have a blockchain which is called Green Field which is essentially just for uh data so
Decentralized data storage which is Big so you can have businesses that run off of this so you know we know that Google Cloud um you know other cloud services are hugely profitable massive businesses but of course your data if you use iCloud or any other cloud service your
Data and all the stuff there is on their servers and is ultimately owned by them right if they detect something that they don’t like they have closed people’s accounts before from things that they did that weren’t wrong but the the you know the system like closed their
Account uh even though the person did did nothing wrong and they’re like all my data is gone I can’t get it back because I’m blocked from the account they blocked me so you have to go through this process of like this legal process getting it back with decentralized storage you can use
Blockchains to store things as a cloud service that you have control of so again there may be things here with regulation and also we know that centralized identities are coming online which is where you know you have to have an identity in your wallet that is linked to your exchange account first to
Make sure that you’re not a criminal or anything before you can use these services but a lot of this stuff with B&B Greenfield is more kind of backend stuff so game companies or other things they they can put some uh data in these blockchains but because it’s blockchain
Centric very easy to link with other services and get payments between them this is happening on kadano as well something uh launched I think it was iagon or something which is essentially decentralized cloud storage right so you can have your account there and you don’t need to use you know big Tech
Centralized Tech so we know Cloud works we know cloud storage is a big thing it’s you more and more moving on online uh to cloud storage so this works maybe it’s safer uh and you don’t have to give your data to you know big Tech B&B Greenfield here a decentralized data
Storage system so this is within the B&B smart chain ecosystem so again infrastructure you know layer twos and infrastructure these are not money these are um businesses and the chain itself has to make money right so it charges a fee and you would hope that the fee is
Uh you know enough to pay for the blockchain and to pay you some returns as well so more Investments um but again for B&B you know they have a token that’s across that whole entire ecosystem so B&B chain op BNB ZK BNB B&B Greenfield many others so it’s a token
That pay pays for infrastructure um so it has some Revenue model to it right not money like Bitcoin Bitcoin is just kind of very very different right so ethereum scaled optimism here is scaling ethereum so what they do to make money is um they take a th transactions let’s
Say and they post it down to ethereum as one transaction it costs them $50 to post to ethereum and they charge the users in total $100 those users get a much cheaper Fe environment because they’re Collective with others and optimism makes a a profit between what they pay ethereum
And what they charge users so again this is not money but it may make money from the transactions and the profits that it can get from those right we have polygon which is doing exactly the same thing it’s actually calling itself more like this Amazon web services thing which is
They are opening up ethereum so you want to develop on ethereum come and use polygon because they have uh all the different types of scaling layers and they make their profits you know through uh people staking the token people paying fees for this infrastructure so again they’re actually making money very
Small right now in comparison to what they’re valued at um but over time if we think this industry grows a lot then obviously you’re you’re looking forward to that so what we can see here is that this is blockchains via the revenue that they make or the fees that are paid
Don’t like to say Revenue a lot cuz they’re not businesses as such they’re blockchains and this fee revenue is designed to secure the chain so that people stake on the chain to secure the chain um so you can see ethereum over the last 3 65 days made 2.4 billion in
Fee Revenue you have Tron and Bitcoin here and then if we look at layer 2os we’re coming all the way down the list to arbitrum which is 60 million in fee Revenue ZK sync which is 60 million you also have uh polygon down here at 36
Million in fees I think the use case here is pretty simple they are a part of the network stack that has businesses and other types of users that use them to make ethereum cheaper and to just develop good products and services for them they pay certain fees for that um and that comes
In the token that token acrs value from fees and revenue and then it’s paid out back to the individual investor via token Burns or staking so it’s a it’s a it’s a crypto business basically through the kind of network model it’s not an investment in a company you’re investing
In that network uh and the profit it profits it makes but they are profitable they’re not anything like eth but they are probably like second order in terms of yes they make money over time the issue here is that I think a few winners will emerge because you’re going to have
To benefit from economies of scale here and as uh as the fees that you charge get crushed by competition you know the big players are going to win out just by having more volume we’ll quickly touch on layer ones here as well an even smaller number of tokens that are really
Investable so Bitcoin is what it is we all know that it’s extremely successful there’s an ETF coming in 2024 most probably um it’s a large liquid store value Asset um and it has demand ethereum different smart contracts so allowing for other things the issuance of other tokens and decentralized
Finance layer one huge large massive worldwide store of value Asset ethereum makes revenues as a as a blockchain uh as long as users are on this ethereum is by far and a way the kind of most profitable largest chain there are others though Tron is very popular U
With uh stable coins outside of the US in a lot of Emerging Markets binance smart chain as you can see here is also very used in Emerging Markets you’ve got about a million uh a million active users on there with Tron and binance smart chain and that’s about it right
The others are you have salana here which is doing pretty well this year you can see that um a lot of people are trying to push salana into be the kind of third ecosystem right so you have Bitcoin and ethereum which are bedded in and then you know everyone’s looking
Like what’s the third system can there be a third operating system these are more like decentralized operating systems with layer ones ethereum you know B&B chain the binance ecosystem salana um they’re trying to be even kadano right uh which tvl is going up very well recently these are trying to
Be decentralized operating systems as such right so the new um you know Financial operating systems where a lot of things happen so that’s really it these are going to be valued quite highly as long as there are people producing revenue and GDP in these Network States doesn’t get more complex
Than that I think if you’re just looking to invest in crypto the layer ones are the place to start because everything else is like a business bus these are difference these are investments in networks and really you’re just looking at who’s developing on them and are more people developing these things over time
You know and you’re seeing that happen especially with ethereum uh B&B smart chain Bitcoin they’re all growing very well so we all know that that really is crypto is that those layer one chains I do separate Bitcoin from everything else I just think it’s wildly different Bitcoin is not really an operating
System ethereum is because you have Smart contracts being B salana kadano they have Smart contracts they’re trying to be operating systems with businesses on top B uh Bitcoin is just different because it is simply send this from this wallet to that wallet and then you have the mining Network which is you know
Supposed to keep keep this absolutely strong and never ever changing the uh amount of coins there it’s a different Beast Bitcoin a lot of people may be Bitcoin only I get it but there is a lot of opportunity and other layer ones you know the big ecosystems can change over
Time I think ethereum has shown itself to be kind of the the leader here and the development activity and what’s happening here most of that is on eth and the scaling of eth another thing that people do within crypto is allocate to a trading Trio or at least just uh
Put assets towards things in certain stages so what is a trading Trio of course during bull markets you know everyone wants to get the flyer right the moon bag that small thing that just pumps you know it gets users or it it blows up in some way and people start
Using it or people start speculating here on you know people want to take advantage of bull markets because in Bull markets these things happen in bare markets of course the opposite and these things go down but a trading Trio very simply is they take risk in stages so
The layer one coin whatever it may be this is just an example again I don’t want to promote any of these coins or say that they’re good or bad or anything but you know trading Trio is you have the layer one coin which is like broad
Exposure to the whole thing on top which is where I’m comfortable but then you have the second layer which is Def apps on that on that layer right which during bull markets May outperform and we’ve seen that with defi like if you if you look back to defi here you can see at
The start of the bull market which is what we’ve had here you can see that these are actually outperforming eth right so if you got in here you’re actually outperforming ether a little bit because the higher beta as it’s called the riskier stuff May outperform in a bll market that’s why people have
It now you can see long term it doesn’t look doesn’t look like they’re outperforming but during bull markets what I’m getting at is some people want to take extra risk and have high beta in their portfolio which means things that can’t might outperform the layer one do you want to do that Bitcoin
Is going to go up like 400% ethereum similar do you really want like do you want more than that like it’s a great return but of course people want their Moon bags so this is a way to layer those risks is to have you know most of
It in the layer one but then you have the ecosystem coins right lending trading whatever on that and then you have the the absolute casino game as the layer three right so the trio of trading is I’ve got my exposure but my moon bags are there and you can decide what
Percentage you put put to that small or largest up to the individual but just trying to take risk if you really want to take risk and and try and get this but doing it in a way where it’s you know you’ve still got your lower risk
Exposure I think that’s the bulk of a portfolio should just be in that lower risk stuff for most people so putting a portfolio together of these sectors like I said I don’t just want to list coins here it’s really it would be massively easy for me to just go and get like the
Top 20 most searched coins read some of the white papers and tell you why you’re going to be a millionaire by investing 1,000 bucks in a couple of them but let’s just be honest about this most of these apps are going to zero a lot of
The chains are not going to work out we’ve seen if you’ve been in crypto go and look at crypto like 5 years ago all of the coins are different so there’s massive risk here in a bull market these narratives may work but I think we have
To take a step back and say let’s have a 10-year plan or a two cycle plan which is around 8 to 10 years to invest in really quality stuff where we can actually have some solid Investments that grow really well right and if we want to take the extra risk with the
Moon bags and stuff we can do that but just make sure that the bulk of what we’re doing is solid reliable stuff because we are not you know we’re not at this well I am at this literally all day long but a lot of people yeah they have
Jobs that they go to they can’t spend 10 hours in front of a screen each day they don’t know exactly what’s happening every single day they can’t make decisions about 15 different things and so what what happened to this 15th coin that I invested in I haven’t looked at
It for 2 weeks it is a complete nightmare take give it someone experience where I managed you know I manage people’s portfolios and Investments for a living it is a nightmare when you start getting a massive portfolio things going in different ways right and so let’s just
Simplify this and say crypto is an asset that is just going to hu new alltime highs over the next 10 years or so right it’s a massive industry that’s growing let’s just get some nice exposure to it let’s make sure that we have our if we have our moon bags they’re not crazy
Amounts because a one% allocation or a half% allocation in something that does moon during a bull market is enough because it can go 51x I mean salana has done that right at the beginning of this bull market so you don’t need to overallocated to risk you can under
Allocate to it because of the percentage returns that may come but we know that 90% % of this is going to zero eventually and so we need to be in stuff that is solid that actually makes our life better because we’re not just in this to make great percentage returns
And try and play a game we’re in it to make our lives better make our lives simpler and have something reliable that we can say hey that’s the bulk of my portfolio 10-year plan DCA into quality dollar cost average into quality like the layer ones that you want Bitcoin
Ether whatever DCA into those and then split your portfolio into buckets of risk so that you know if all of that risk goes to zero I’ve still got 80 to 90% of my stuff in that stuff that I’m making money on and you will make the
Returns in that stuff if you just wait so we don’t have to rush in if you want to allocate more to risk wait for a bare market right so this is a sample and again I don’t want to say this is what you should do or anything like that it’s
Just a sample Le that we’re looking at know where we are in the current cycle prices have Cycles narratives have Cycles you can take advantage of those during the upswing but don’t get caught out in them don’t get sold on crap because a lot of the business model for
A lot of these businesses in crypto is to sell a token to us as customers we’re investors not customers all right the big business plan of a token could be let’s create a token for free out of nowhere that costs us nothing let’s go online and tell people that they’re
Going to be rich by buying this token cuz we’ve got a great idea people buy the token the token price goes up those people are now multi-millionaires and they have a business with no users no revenue and no future that is why Securities regulations exist in America because when securitization happens
There is this huge influx of people that said wait a minute I don’t even have to have a profitable business I can just sell people Securities for a living I can pump and dump them right you’ve all seen The Wolf of Wall Street well most of crypto is that total garbage so we
Need to make sure that we are investors and not customers we also need to make sure that we’re investing in the riskier parts of crypto that they will do well as long as the macro cycle is inflecting upwards this is Bitcoin over time and you can see it has a long-term uptrend
The secular uptrend of adoption in Bitcoin is up within that you have price cycles that are influenced by the macro macro economics up and down you can see that very very clearly as long as you’re investing in the upswing everything’s great as soon as the downturn comes a
Lot of these pink sheet garbage that’s been you know sold to people through the bull market goes 90% you can take advantage of it as long as you know where we are in the cycle but please have a long-term plan to just save over time as well so put the bulk
Of your stuff in solid Investments DCA into them over time don’t worry too much make sure you’re allocating during the big draw Downs in Bitcoin and ethereum’s prices we just say Bitcoin here right it has draw Downs make sure you’re allocating and saving during those and then during the upswings we can take
More risk if we want but remember up here is the worst time to buy and that’s when all the narratives are popping off you’re paying the most amount of money for the most risky stuff at the top of a bull market do not do that right that’s
The worst thing we can do so if you think a narrative is going to be big you can wait for a bare Market there’s plenty of time here so you have your stack and then you have your risk buckets whatever they may be in percentage terms so that even if all
That goes down we know that the safer stuff is just going to accumulate over time even saying that you know traditional investment managers will tell you Bitcoin and ethereum even are massively risky you may lose all of your money in them even so know what crypto
Is in terms of its risk as well versus some other things so everyone can take that um in the way that they want now this type of thing is what I talk about in the crypto course you know I’m a Prof you qualified investor manager so I’m
Going around how do you put a portfolio together how do you actually use that to benefit your life because that’s what investing is about right so just a lot of um textbook stuff related to crypto how to use crypto anyway all that’s for the crypto course so if you want to get
Extra into that that link is below but that is crypto going forward in 2024 and that would be you know a potential of portfolio and the sectors that you can allocate to
43 Comments
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Scammers are in the comments! I will NEVER contact you! I do NOT have WhatsApp or Telegram!
Well done
Did anyone hear about PLX token presale ?
Is there a discount code for the course somewhere?
Finally someone is fairly grounded, to see trough the hype mania
I think this guy is the best YouTube crypto person by far. Knows guys stuff, doesn't shill, cautious approach. Excellent all round.
Appreciate you laying this out for us
Nice video. You should also add $CRU to your portfolio. It’s already gaining grounds in the decentralized space.
Thank You brother!
You did a great great video i kep rewinding and replaying thank you!!
Thoughtful video. Valuable info. Thank You James.
Great work! Thank you
Good job man! We appreciate for all the time you sacrifice to make for us all these very good videos👏
Thank you.
MoneyZG.. the voice of reason in the crypto space
GO ADA !
What are your thoughts on polkadot?
Great presentation, lots of info, Thankyou 🙏 I know you don't often respond but with this video in mind, we'd love to see what in and how you've invested, apart from the obvious BTC and ETH. All the best 🙏
Great overview 👌🏾
Our government in the u.s. is beyond corrupt.
👍
This channel has really got great in the last year
What do you think about this "DeFi Kingdom" cross-chain game under AVAX? Is it worth investing in?
Excellent mindset and observations James! Everyone needs to watch this video
I would love you to match up with James from InvestAnswers one time. Fingers crossed it will happen in 2024!
Best wishes and thank you for sharing your knowledge.
Every newbie should be watching this, twice!
all the telecoms pretty much work like that. if you have a building or place for an antenna you get paid for it and for usage.
Thank you for sharing your knowledge and data and wisdom in crypto. Priceless seminar. I'm yet to complete my 1st 4yr cycle and this will be my first bullrun and my first bitcoin halving. Exciting days and months ahead.
I agree with most of your logics and ideas, but when retail and FOMO hits, even these tokens with negligible utility can pump hard.
I like your content but with likes of RNDR. The company behind RNDR is one of the biggest Web2 companies in CPU rendering. You seem to not be understanding the term Decentralised which is really the main point of crypto. It’s sad to see influences going against the point of being decentralised
Nice content mate ! 🙏
could you do a breakdown on Litecoin? like could you find why its ath was 2 bull runs ago?
So get rid of my AI coins then ???
James is basically saying this is how to have your money make you money people! lol
Coinbase needs to pay you to write the bull case and bear case for each crypto asset they now list on each coins page
Awesome video. Couldn't agree more about AI. It's too big and too dangerous to allow a free for all. Google, Meta etc will be the only players in the space. Also I've got to shill ADA. 2024 and 25 will be huge!
You are best of the best!!!
Bloody hell, I learnt more in 30mins than I have for the last 2years of investing
Excelent content James! This is exactly what people need to know and admit. Thank you for what you're doing 💫
great thinking! but i dont know in what 2 invest now!
Well said!
@MoneyZG, another great content filled vid! I agree about Render and AWS (58mins in). Nikolay Vlasov (senior Solutions Architect, AWS) gave a presentation about running Solana Blockchain nodes on AWS at the Solana Breakpoint 2023 in November. Therefore, the end result is the ability to build Solana apps on AWS or for AWS to utilise the cost effectiveness of the Solana Bloackchain for their services.
James is a great crypto YouTuber because he is very knowledgeable, he doesn't shill projects and use sponsors to push products on us. I really value James.