Where I see value right now 🔮
Aloha everyone!
The last 45 days have been wild.
I’ve had more sleepless nights than ever before in my life going down the crypto - now also called Web 3 - rabbit hole. It’s like the dot-com on steroids.
I’ll keep today short - with an overview of what I’m scooping up for my portfolio, and where I see value today.
Of course, none of this should be considered financial advice, I don’t know what I’m doing - bla bla bla - you know the drill.
With that out of the way, I believe 2022 will be the year of subnets.
You don’t need to understand it to make money, but for the sake of being (slightly) thorough -
Subnets are mini-blockchains that allow crypto projects to be isolated from one another while operating within the same ecosystem.
Ever used Ethereum at the same time as literally everyone else on Earth?
Painful.
When some blockchains get busy (like Ethereum), gas fees can get EXPENSIVE.
For example, Gary Vee launched a new NFT collection that cost 3 times as much money to mint (i.e. create) as the entire thing was worth - because everyone was trying to do it at the same time.
That’s like the price of petrol going up 100X at peak hours on the highway. It’s crazy.
Subnets solve a lot of problems with gas fees and transaction speeds because if one mini-blockchain gets busy, it doesn’t congest the entire network.
This makes them perfect for crypto games - one of my highest conviction themes.
The big pioneer of subnets is the blockchain Avalanche. And there are two projects in particular that tickle my fancy: DeFi Kingdoms and Crabada.
They’re both part of degenerate crypto land - colloquially termed “DeFi” (which means the whole thing could go to 0). DeFi Kingdoms launched its subnet two weeks ago, and Crabada will do so in another two weeks.
Right now, annual yields are in the 500-2,500% range per year so if subnets do well in 2022, I could crush the $100K to $1M challenge I set for myself this year.
If not, I’m having bread and crackers for Christmas.
So subnets are my first big bet.
I also believe 2022 will be the year of Ethereum - for the better or for the worse.
If a planned upgrade to Ethereum goes through this year, it could send ETH to $10K.
That’d probably take the entire market to the moon.
But it could also fail, which would likely send everything to the toilet instead (at least for a while).
Never a dull day in crypto land, eh.
So this year, for the first time since I started investing in crypto, my biggest allocation is no longer bitcoin - it is ETH.
This could become a huge mistake in hindsight, but screw it - I’m betting on this guy:
All hail Vitalik.
In the meantime, I’m huffing and puffing on my feet, bike and in the water - first Ironman race is June 12th.
I’m semi-somewhat-kinda-prepared, but given how much I’m sweating just writing these lines, I’m probably massively underprepared.
You can follow me on Strava for my long-shot attempts at biking for more than 4 hours in a row without having to incessantly pee from all the goddamn water I have to drink.
I’m also considering a commitment to crack the million subscriber mark this year. If I do, you’ll be the first to know.
So with all my cards on the table, I wish you a fantastic Q2.
Mucho love from the sea and the sun,
Alex.
PS: Everything in DeFi is like a 9 on the Richter scale. Very high rewards = very very high risk.
PPS: The market is red. It’s not because something’s falling that it can’t fall further.
👋