Bagholder to Homeowner (Week 1)

The Foundation Has Set

I purchased three cryptos to begin this portfolio, two intentionally and one as a consequence.

The two I intentionally purchased are Internet Computer Protocol (ICP) and Quant (QNT). I intended on making these two the foundation of my portfolio as I view them as some of the best risk to reward ratios for my portfolio sizing. I also bought Ethereum (ETH) as a consequence of buying Quant.

It's important I address why I will not be making Ethereum and Bitcoin the foundation to my portfolio. Most people in crypto will say that Bitcoin should be the largest holding in a portfolio to reduce volatility and ensure long term prosperity. I imagine we all agree $BTC will be around and performing fairly well for the foreseeable future, but do you need it to succeed?

The reason simply put is that I want to outperform Bitcoin with this portfolio. I believe we will see Bitcoin do a 10x in price (from its lowest price point of $15,000) leading into the next crypto cycle, which will be somewhere around the end of 2025. If I made this the foundation of the portfolio I could expect my $500 to turn into $5,000, which would be fantastic but not enough to buy myself (and my cat) a house.

Ethereum will likely do better, but the Gas fees will destroy the portfolio!

I am moving super small amounts of money at a time, to the tune of $10-$50 per transaction. If I made Ethereum the foundation then I would be paying that in Gas fees each time I added to my position. Which would mean I effectively start each Ethereum based position in the hole by 50%.

This is exactly what happened with Quant!

I made a tweet about this, where I ended up spending nearly $20 in gas fees to buy $20 worth of Quant’s $QNT coin.

Absurd.

I really like Quant's future, but being built on top of Ethereum's blockchain means I have to pay excessive gas fees to acquire the token. Quant is a utility token used for payments in the Overledger network.

Overledger is a solution for interoperability among blockchain based companies who want access to a multichain foundation. We know each blockchain has its advantages and disadvantages, Overledger allows companies to pick what aspects from different blockchains they want to integrate into their product offerings. Quant is the token gateway to this network if you will. I will go more in depth in a dedicated write-up.

So for the time being, ICP will be the foundation of this portfolio because I think it has one of the most attractive risk-to-reward profiles in the market. For an account of my size, a promising coin that could reach a market cap upwards of $100B (a 40x from its current $2.5B).

A bold claim.

I view ICP as the logical next step in decentralization for web 3. Bitcoin was the first successful Internet money. Ethereum expanded on Bitcoin's capabilities by introducing programable money, so now applications could be built in a decentralized fashion. Internet Computer Protocol improves on Ethereum by enabling the hosting of databases in a decentralized manner.

It can get complicated very quickly, essentially what you need to know is that right now, most NFT projects on Ethereum store the NFT metadata on Amazon Web Services (AWS). Many of the node operators are hosting their node(s) on AWS.

ICP is a decentralized AWS.

(Writing that made me want to buy more)

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The portfolio at the time of writing (5/4/2023):

• Ethereum: $26.07 / 0.0138 ETH

• Quant: $19.81 / 0.1759 QNT

• Internet Computer: $30.19 / 5.0998 ICP

• USDC: $410.75

Fees Paid: $16.71

Total Portfolio Value Today: $486.82

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(Chat GPT wrote this for me lol)