So everywhere you look people are posting about how the Genesis Block of Bitcoin was mined nine years ago today. I wouldn't have known that if I hadn't seen it at least once, so that's a good thing, though I think it is getting a little overblown at this point. But I want to approach it from a different perspective.
So I have been considering creating a cold storage wallet for my son. All things being equal, we are about 9 years from my son going off to college. So with 9 years of Bitcoin in the books, and 9 years of my kid being a kid ahead, I have a question....
So to answer the question, I have to start with a little math.
Let's Get Out The Calculator
The first price I can find for Bitcoin is from July of 2010 when the price (according to google) was $0.008 per Bitcoin. That's the figure we'll use, even though that is 1.5 years in to the experiment.
So, I want to say I invested $200 in Bitcoin in the beginning. So $0.008 price with a $200 buy in gives you 25,000 BTC. Let's say we put that on a paper wallet, ignored all forks, and just unburied the time capsule today.
That $200 investment then would be worth
25,000 x $15,326
Have you done the math? Did I miss a decimal?
$383,150,000
Well... That's a tidy sum isn't it? Would make life a whole lot easier for a lot of people. Puts the lambo right in the driveway doesn't it?
But we can't go back in time and load up on Bitcoin. So what's next?
The Challenge
I want to put $1000 worth of crypto coin on an offline wallet and lock it in a fireproof box and let it sit for 8-9 years. When my son graduates High School and heads off to college I want to be able to present it to him to pay for school and get his future started.
I believe in diversifying in an effort to broaden the chances of a "hit". So let's come up with 5 coins that are relatively low in acquisition price today, with long term road maps that indicate a lengthy utility of the coin, that I can buy $200 worth of and sock away for my son.
What are your top Long term holds?
Should I just buy $200 of BTC, ETH, BCH, LTC, and Ripple? Or should I get a couple of ICOs in there, some of the Alt coins? Chill out with small cap coins on Cryptomania? What are your suggestions? How would you invest $1000 in a crypto time capsule?
Let's hear your suggestions, and how you would set up such a wallet. Would you split it straight up $200 five ways, or do Half BTC and half the other coins? Or spread it around with a whole slew of small caps? Nothing is out of bounds for this exercise. I'm not holding anyone personally accountable for how I invest.
In my completely uneducated opinion (I've literally only started reading about crypto since I got that curie vote the other day), Ether is gonna be a bigger grower than BTC in 2018. But 9 years from now... Nope. No idea.
Diversifying evenly across the 5 biggest coins sounds like the best bet though. Not just to maximise chances of a hit, but also for damage limitation if any one of them tanks. Don't need to know much about crypto for that, it's just good sense. Similar concept as diversifying across Apple, McDonald's, Coca Cola, Toyota and 7 Eleven, for example.
I am far, far, far from an expert but I would go with ADA, SUB, and ETH. I would do $200 for both ADA and SUB and then $600 in ETH. But, the reality is your guess is as good as mine. I think ETH has a lot of long term potential and is a bit "Safer" since so many tokens are based off the erc20 token. Take this with as many grains of salt as you want!
How much SALT? 😂 (sorry, couldn't pass that up)
lol, that was a pretty good one.
@mikepm i think so you should divide your 1000$ in 5 parts and invest 200$ in each cryptocurrency which you guess it will boost up in future instead of all 1000$ spend in 1 currency.
Good post 👍 followed and upvote you hope you will do same for me 😊 best luck
Eos iota trx xvg xrb. Put 200 in each
really if you can spend a bit on every coin you mentioned do it. everyone is different and serves something different. In 9 years i believe the world would have change a lot so to hold each and every of the above coins for so much i don't know if it gonna prove the right move.
Make a goal to invest 200$ in every coin of which you mentioned and ofc steem too!
I'd use half to buy 3-4 big name coins and use the other half to buy 5-10 coins that are less well known but that you believe have potential. Ones that have an unique (and usefull 😉) idea that current coins don't cover.
Personally, I'd skip Bitcoin: because it was the first it will probally be around for a long time, but coins like ETH will eventually rise over it (in my opinion).
I think the smartest thing would be to buy tokens that are not minable and without fees because they are the future as you can see by looking at coinmarketcap. There has been crazy price action regarding EOS , Stellar Lumens and recently Railblocks.
If I were you I would buy some EOS, Komodo ( because privacy is also all the rage), Railblocks and as for small market cap coins I would get Substratum ( because it promises to let people to navigate the internet without the fear of censorship or the need for VPNs which is huge) and Agora token. These are kind of "hipster"coins but I think they are on to something important.
The only thing is I don't know how forks will affect them.
Cheers man!
P.s And of course one Fuck token for shits and giggles :))
@giftedgaia
From what I've seen the past couple of years is if you bet against BTC you loose, but 9 years is a long time. I would say 20% of your money into BTC would be a good investment.
20% into LTC and 20% into ETH. I think these 2 coins will be around. LTC because it was such an early coin like BTC and ETH because it seems they have a good well laid out development team. I think ETH will continue to make solid and game changing improvements over the next 9 years.
20% into EOS or Steem would be a slight gamble. (maybe 10% in both?)
The last 20% I'd split on big gambles like EOS, SALT, Bitshares, and OMG. Basically the last 10-20% think would be worth on gambling on something big.
Nice way to think of it, and since it's for your son's education I will recommend an ICO presale. I'm biased but take a look at teachmzansi.science and help your son help other kids - full circle.
Most good coins are kinda over priced now. I would say SMOKE, EOS and UniKoin gold maybe.
I like the idea I might do something like this to as a gift for people.
I think Iota may have a good future, or why not invest it on steem? I believe that many coins or platforms could succeed but no one knows what does the future hold.
I know others have mentioned EOS, and I'll concur with them for my own reasons. With EOS we all know the guy who made it, Dan Larimeer, bc Dan created steem. So we have a track record to go off of. There's a lot of white papers out there promising a lot of things. But we've seen Dan deliver by creating Steem and Steemit. I don't have time to read and understand all these white papers, so I'm inclined to invest based on the person behind the project, if that person have produced in before. That's why I'm an EOS guy.