This strategy is a combination of dollar cost averaging, and momentum investing. Having invested in the stock market using both these strategies, I can attest that it is very unlikely to become a millionaire using these strategies. I dollar cost averaged in about 20 DRIPS (dividend reinvestment plans) and momentum invested in several mutual funds. The funds were much more fun to watch, but the DRIPS had the better returns. The problem becomes, being in the ones that actually have the great moves.
RE: What percentage should you invest in each cryptocurrency to become a millionaire? A guaranteed winning strategy (updated 8/16/2017)
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What percentage should you invest in each cryptocurrency to become a millionaire? A guaranteed winning strategy (updated 8/16/2017)
Not that I am agreeing or disagreeing with the strategy here but comparing it to stocks really isn't fair. The top ten or twenty stocks by market cap are typically already fairly valued unless there has just been some sort of crash that took out the good with the bad. This would be more like buying into the top 20 tech companies is 1998. The bigger problem is that even if you bought a millionth of the supply of Amazon in 1998 your 5k would have become 500k but it would have taken you 20 years and inflation would have crushed your gains. I think for this strategy to work you need to truly believe that blockchain and cryptocurrency will displace major stores of value AND that one of the current top 20 will be the ones to do it and that is still a huge gamble.
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Voorash, I think you got this right. This is predominantly why most stock investors are down the last 20 years or so, because their gains, if any, get goobled up by inflation, and loss of purchasing power in the dollar. This is why crypto are so appealing to me, because no one is inflating them away, like the Fed does with the dollar.
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Agreed Voorash, another possible comparison could made about the top brands in the beginnings of the car industry
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