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I'm Balls-Deep into These Two Cryptos, Here's Why

October 13, 20244 min read

I want to give you some investment insights from my perspective as a seasoned professional investor of 20 years. 

Yes, we provide one-to-one property strategy consulting to families ready to level up their financial game. So, I am biased towards new-build positive cashflow real estate, but we are also super keen on crypto for the following reasons:

  1. Low barrier to entry: you can get started with as little as $500

  2. The opportunity to buy low and sell high and make a significant upside (if you’re disciplined with entry and exit markers). 

  3. Fixed supply - Unlike fiat currency, the government can’t print more cryptos, which erodes a fiat currency value when more money is created out of thin air. For this reason, finite assets appreciate relative to inflationary assets like fiat currency. Listed companies can also issue more shares, which can dilute shareholder value over time. 

  4. Underlying use cases that provide real-world solutions to real-world problems can materialise into significant gains (more on this below). 

If we suggest a cryptocurrency, we don’t get paid for it. And we only suggest crypto we invest in ourselves (yeah, that's right, we eat our own dog food). 

So why would we suggest a crypto if there is nothing in it for us? Because it aligns with our underlying mission, we believe the world will be a better place with more Wholehearted Dads in it. A Wholehearted Dad needs to do two things to get his most valuable asset (his time) back:

  1. Dads can use crypto gains to reduce personal debt in large chunks, getting them out of debt slavery faster; and 

  2. Dads can quickly build equity for the cash bit needed to acquire positive cash flow property. 

So, if more dads make a killing from crypto, we can help more dads thread the needle and replace their income from a job with income from property. In other words, cashed-up dads looking for help to park their hela-crypto gains into positive cash-flow property are good for business. 

With all that in mind, let’s discuss the two cryptos we are balls deep into here at Practical Provider:

  1. Bitcoin: Maximum 21M coins and, at the time of writing, 19.8M coins in existence. Bitcoin is an agreed store of value and is now being adopted by institutional investors. Supply is cut in half every four years, creating a cyclical market effect: killer highs and woeful lows. However, the seasoned crypto investor sees these market conditions as opportunities.

Aha Moment: It is the most secure store of wealth on the planet. It’s like gold but better because we know exactly how many will ever exist, and it’s far more easily distributed. Billions in agreed value can move around the globe in minutes, far more efficiently than sending gold bars by sea to settle national trade deficits, which is how things were done in the old days. 

  1. Theta Network: Maximum 1B Tokens already in existence. Theta works on a two-token system: Theta & TFuel. Edge Nodes are incentivised with TFuel to share surplus resources. Theta shares excess bandwidth and computing resources using a software download. Recently, it has applied these surplus computer resources to complex AI models. Theta Labs has over 12 real-world patents and significant worldwide partnerships, including Samsung, Sony and Google, to name just a few. It was recently announced that Edge Nodes are available on Android devices, including mobile devices; this unlocks 3B potential additional nodes to the network.

Aha Moment: YouTube, Netflix, Disney+, etc. will eventually use Theta Network to deliver content because it will be cheaper than setting up server rooms worldwide. Metcalfe's law states that a network will become more valuable with more nodes. Over 30K nodes already share bandwidth and computing power, and mobile devices can exponentially increase Theta’s network value. Ultimately, Theta’s use cases solve many real-world problems, and these gains will increase Theta's price.   

We are about to head into the second half of the crypto bull market, and significant gains can be made. Please make no mistake; it will peak and crash, so timing is critical for taking chips off the table. 

My portfolio skyrocketed in previous crypto cycles when recency bias kicked in. I thought crypto would keep going up forever, that I was a genius, and that I solved my family’s financial future in a few short months. Little did I know at the time that the cycle peaked and the inevitable crash was coming. I now Hold On for Dear Life (HODL) patiently until the next crypto peak and will take my profits at specific exit markers. 

As a Visionary Dad, my weakness is selling into the peak, so I must remember to take those gains as the exit markers present themselves. I learned the hard way, but you don’t have to. Others are Conservative Dads who may be left behind because they will see new asset classes like crypto as too 'risky' to invest in. 

If you want to find out what type of dad you are to help you maximise returns in different market conditions, you can take the Dad Dynamic Test - https://practicalprovider.com/dynamic-quiz. I wish this existed before the 2021 crypto peak, as I would have taken those chips off the table and reinvested them back in the depths of the crypto bear market. My returns would have magnified significantly, and I could have rolled those gains into income-producing properties to get more of my time back. 

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