The Crypto Barbell Strategy
💥 Ethereum $10k in 2022. Investment tip to earn a lot of money in the next 30 years.
One of the most profitable market strategies is Taleb's barbell strategy. When you get continuous exposure with bought CALLs and PUTs, you know that at a certain point, you will hit a home run and never need to work again.
It happened in 1987, 1989, 1992, 1992, 1998, 1998, 2000, 2008, and 2020 with the very OTM option buyers. And it will happen again in the future, perhaps when the market least expects it.
We know that sooner or later, our portfolio will do +1,000%, and it will be right at that time that we will buy all the assets that are cheap at that time and that we want to do Buy and Hold for 20+ years: REITs, Bitcoin, Ethereum, MSCI World, etc.
Taleb is what he has been in the business of doing since 1987. At just 27 years old, he made about $32M back then. Today with inflation, it could equal +$65M.
It is practically impossible for an event of that magnitude to happen again, but very similar events have happened not long ago (Covid-19).
What has changed?
When Taleb was young, investing in bonds, property trusts had a very good risk-return trade-off. Today it is different. From the table above, we have that equities have historically given a 7% return, assuming an inflation of 7.5% means a loss of purchasing power exposing our money to equities.
Therefore, better not to talk about government bonds, some of them with a negative yield.
This is because:
There is a lot of liquidity in the markets.
Money is worthless.
Central banks have lost absolute control.
Other alternatives have emerged.
The new barbell strategy
Cryptocurrencies have given us an excellent opportunity for 'quasi-perfect' money. Obviously, you have to know how to distinguish the noise from the news.
For this, it is very important to understand the projects. Today we want to talk to you about Ethereum and a project that could launch ETH at $10k before the end of the year and about which we have written in great detail.
Ethereum is the money of the future, even more so now that it can become a deflationary cryptocurrency (just like Bitcoin). Taking a medium-long term view, I can't imagine a world where it hasn't been adopted, almost massively.
Also, today cryptocurrencies could fit into any part of Taleb's Barbell strategy, both the maximum risk part and the not-so-much-risk part.
The generational leap is much like the one our parents and grandparents experienced with credit cards.