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The Crypto Barbell Strategy
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The Crypto Barbell Strategy

💥 Ethereum $10k in 2022. Investment tip to earn a lot of money in the next 30 years.

Apr 06, 2022
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The Crypto Barbell Strategy
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Source: Pexels

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.

The Point-To-Point Entropy In SPX Volatility Is More Like 1987 Than 2008 
HEDGEYE 
ID 3D 50 1M 3M 6M 9M YTD IY 3Y 5Y IOY Max Custom b 
Nov 1, 2008 open 60.17 High 81.48 
LOW 44.25 Close 55.28 Volume 
Double Click to Place a Limit Order at 55.28 
70 
60 
50 
40 
30 
20 
10 
1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 
Source: StockCharts.com 
@ Hedgeye Risk Management LLC.

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?

Generating Income And Limiting Risk - Strategies To Create A Balanced  Portfolio And Boost Income | Seeking Alpha

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 $10k in 2022

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.

🔒 How to act? (Investment tip to earn a lot of money in the next 30 years)

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