Metacoin

Covering Bitcoin, the Blockchain, Altcoins, and Fintech

Quadruple

Four Coins that Could Quadruple by This Time Next Year

Okay, folks. It’s time. First, the disclaimer:

We don’t provide individual advice. Past performance is not indicative of future results. Seek professional investment, financial, and legal advice before investing in any asset, let alone cryptocurrencies, which are a brand-new, emerging class of assets. Read our recommendations and take them with a grain of salt, do your own research to back up your investments, and be prepared. Use this site at your own risk.

Now that we’ve scared you, here’s our post.

We gotta admit that this is a rather fun universe we’re entering here. Part dot-com boom (before the bubble), part options trading when it was just invented. And part gambling, because, let’s face it, some of these ICOs and emerging cryptocurrencies are like playing the lottery or playing roulette.

That being said, though, the idea of creating an entirely new form of money, based on computing power and solving code and a lot of stuff that’s way over the heads of mere mortals – well, that’s just plain thrilling.

So, as we jumped head-first into the pool with this post, we tried to think of the particulars that could make these coins actually go crazy in the market. Some of this is going to be a little too techno, and some of it is going to be real-world. All of it is mere speculation: I can’t see the future.

But if you take our “BRED Portfolio” post as an example of our ability to be soothsayers, we might be on to something here. (If you had invested in the BRED Portfolio on April 1, you’d be up 12.08% in just three weeks.)

Enough background. Let’s dive in: Four Coins that Could Quadruple By This Time Next Year.

Metacoin Meme

#1: Litecoin

That does it for me. Seriously, though, once you’re starting to see a coin used side-by-side with Bitcoin, you now know it’s got real-world functionality.

Litecoin (LTC) is about to hit its fourth birthday, and it’s actually well below, on a USDT basis, its all-time high of $50.27 a coin (achieved in November of 2013). It’s that factor first and foremost on our list of reasons why this coin could quadruple by this time next year.

Volume of late has been huge – 9-figures worth traded a couple times in April – but its utility, to the tune of transactions per day in the thousands (more than double the number of Dash transactions, per this chart), tells us that the coin is actually being used out there in the wild.

Over the weekend, the LTC/BTC pair was trading at .01 to .012-to-1 – support kept the price above .01 pretty much all day on Saturday. This is another good sign.

Expect volatility, though – I’d hazard a guess that it may bounce around in the .009 to .01 range for awhile. That’s a good price to jump in at.

Mandatory mention of Segwit here. LTC is moving toward Segwit. Segwit is important. Let’s all talk about Segwit!

Disclosure: We’re long Litecoin at the present moment.

#2: Dogecoin

Yeah, I can’t believe it either. A coin named after an Internet meme…you CANNOT be SERIOUS? Dogecoin. I’m serious.

DOGE had more than 10,000 transactions in the past 24 hours – more than Litecoin; third in the rankings behind Bitcoin and Ethereum – and its market cap is $50m+. So it’s legitimate.

What really jumped out to me? The average transaction value. It’s pretty low ($310 or so) when compared with others; the median transaction of around $3.28 tells me that people are using this coin as a Venmo substitute. (Whether that’s true or not, I don’t know. But I’m guessing fewer lattes are purchased and more random paybacks and IOUs are covered with this one.)

Dogecoin trades around 35-38 Satoshi of late. Its all-time low is 15. I see more mainstream use in its future. I wouldn’t be shocked to see it in the 60s in a month or so.

#3: Digibyte

Digibyte logoDid we mention Segwit above? We did. Here’s a link to the latest on Digibyte Segwit activation.

To the layman, this means little, but to those in the know, here’s the general consensus:

  1. Segwit is important; its adoption will drive the price of the coin adopting it higher
  2. It may never happen with Bitcoin, it might happen with Litecoin
  3. It looks imminent with Digibyte.

Place your bets: with a current market capitalization of less than $10m, do you think the bargain hunters will start shopping for the coin that is the first to activate Segwit? Honestly, quadrupling might be a lowball estimate. We’d accumulate anywhere in the low 100 Satoshi range.

Disclosure: we’re long Digibyte right now.

#4: Bitcoin

BitcoinDidn’t see THAT one coming, did ya?

Let’s assume that Bitcoin stays around $1200 USDT, giving it a market cap of right around $20B. Now, let’s also assume that Bitcoin becomes the word synonymous with all digital currency, crytpocurrency, and altcoins (even though it’s NOT an altcoin), sorta like “Kleenex” brand facial tissue is everyone’s word for facial tissue.

I was going to say that there’s all sorts of crazy economic stuff going on in the world, but heck, I’d focus on two things that should drive the value of Bitcoin way up in the next 12 months:

  1. Brexit
  2. The tenuous state of the EU and the Euro

Now, that might get folks moving toward the US Dollar – which is a fair guess – but if you factor in the dicey nature of the US economy and the role of the Federal Reserve in money printing…do you think the masses will want to start putting their money into the US Dollar? Especially when an infinite supply of dollars could, technically, be printed?

Do you think a $5,000 price point for one Bitcoin is out of the question?

Disclosure: We are currently long Bitcoin.

Additional notes: we do not make any trades in any of the listed coins here for 24 hours after the date we publish this report.

 

Quadruple Your Money with the BRED Portfolio

When we stumbled upon this idea this morning, our first instinct was to play it rather cool with the headline. Something like “Introducing the BRED Portfolio: A Buy-and-Hold Bitcoin and Altcoin Investment Strategy.” And that sounds very straightforward, by the book. It’s also boring.

So we went with the clickbait headline.

Read on:

Why “BRED”?

There are a couple reasons behind this one – and it’s not just because these four letters fit together nicely. (They do, though. Props to us.)

Think about one of the best business and investment acronyms out there: FANG. Jim Cramer claims to have created the acronym several years ago, used to put four “new economy” stocks into one nice bucket. Facebook. Amazon. Netflix. Google.

It’s easy to remember, but it also includes four really solid tech stocks – and four companies that are, you could argue, doing quite a bit differently while still being in the same category.

We thought the same thing when creating this portfolio strategy: let’s get four of the biggest cryptocurrencies out there and put them in one bucket.

BUT, let’s do this with an eye toward the ones that have the best chance of long-term staying power.

While “BRED” works nicely as an acronym, these are also four coins that have managed to stick around in the crypto space.

We’re not just rationalizing…

B is for Bitcoin, and you couldn’t have a portfolio like this without Bitcoin, since it started this whole shebang, right?

R is for Ripple – which, for some reason, doesn’t have a ticker symbol that starts with “R” – and Ripple’s USDT price developments of late don’t tell the whole story; consider it the best chance of becoming the backbone of all crypto transactions throughout the world.

E is for Ethereum, whose “smart contracts” were, you could argue, the first yin to Bitcoin’s yang.

D is for Dash – “digital cash” is a very easy and consumer-friendly value proposition. We will argue that this one could win out based on the strength of its community alone.

 

Look at the rankings, though – if you visit Smith and Crown this morning, you’ll see that these are four of the five largest cryptocurrencies – in terms of market capitalization – in the world. In fact, going back to January 1, you would still have been picking four of the 7 largest cryptos, as shown in this chart from CoinMarketCap.com.

Argue with us if you’d like, but we’re going with this acronym. You’ll see why in a second.

Structuring the BRED Portfolio

To keep it simple, we used January 1, 2017 as our starting point. And, as opposed to weighting the portfolio by market cap – which would have had Bitcoin at about 92% of the portfolio, defeating the purpose – we went with a straight 25% invested in each.

Bred Jan 1

To get the prices, we grabbed a chart from TradingView.com – our first-ever visit to the site, which is bloody easy to use, we might add – and use their figures for open price on January 1.

TradingView BRED Chart
Thanks, http://tradingview.com

So there we are, a simple portfolio with four of the biggest crypto assets. But…how did it perform?

Quadruple. Your. Money.

What will remain to be seen here is whether or not this is an aberration – past performance not indicative of future results and all that.

But holy buckets this thing is on fire.

Straight Up Fire

$10,000 invested equally on January 1 in four cryptocurrencies – Bitcoin, Ripple, Ethereum, and Dash – would have grown to $42,567.69 on April 1.

So…Now What, Smart Guy?

Yes, hindsight is 20/20. Looking back, the woulda-shoulda-coulda factor with the coins that aren’t named Bitcoin is pretty huge. And the volatility is such that today’s number on the BRED portfolio is more like $44,000 – and that’s due in part to the Ripple developments over the weekend.

But here’s our take – and we’re not investment professionals, nor do we provide legal advice – on what to do with this information:

Buy and hold. It doesn’t have to be these four cryptocurrencies, but you should consider having a few coins or tokens that you simply leave alone. Don’t trade them, keep them in cold storage, and worry about them only a little.