Is Crypto OVER? How to WIN In the Market This Year.

What the hell is happening in crypto? Obviously, we have the big news about FTX going bankrupt. We have Bitcoin down 80%, Ethereum down to about $1,000. What the heck is going on? The crypto space, we're going to figure that out. In this video. We're going to talk about what all of this means for the crypto space, how I'm handling it as an investor, and how you should be thinking about it in context of your business and as part of your portfolio. Let's dive in.

All right, so in the last year, bitcoin has lost 80% of its value. Ethereum has done the same. The crypto space has lost $2 trillion in value. That's $2 trillion. Just a bunch of people are now coming out saying, oh, crypto is a Ponzi scheme, it's a scam, it always was. FTX goes bankrupt and all this liquidity is drying up in the markets. What is happening? Let's make sense of this. We don't need to recap everything that happened with FTX and go into individual companies. What we need to look at is what this means for the space and how you can be thinking about it as a capitalist and as an investor. First, unlike what most people think, I argue that this will add legitimacy to the crypto space. Seeing companies go under at the beginning of a new industry is part of the capitalist process. Now, I'm not going to address fraud, I'm not going to address what was a good decision or a bad decision. But in the overall business landscape, it's a good sign when new industries start to see people go away. Now that's good because they raised too much capital. They didn't deploy it well. And those who do that should go out of business. When you see businesses raise too much money or get into too much debt and then go under, that is a healthy part of the process. Why? Because those customers are now going to use other products. They're going to use other companies. That is a very healthy part of the process. We call this the consolidation period. In any market. You have the boom, the wide open west where there's money everywhere and everybody's getting rich. Then you have the consolidation around a few winners in the space. That's when you actually have legitimacy in a new industry, when winners start to win. And as a result, investors become wiser. They're not throwing money into every coin, they're not throwing money into every new project. We saw this in the dot com boom and bust in the early 2000s. Everything with a dot com raised money, the bad ones got flushed away. Now investors are a lot smarter about what type of Internet businesses are they invest into. We're going through that right now in crypto. So we're going to see more legitimacy in the crypto space. You see less attention around shitcoins, you see less attention around meme coins, you're going to see less attention around the next crypto big thing and more wisdom going into the space with new projects are launched and when investors are deploying their capital. The second thing we should address is what this means for bitcoin prices and for you to be thinking as an investor how you want to deploy your capital. I'll tell you how I'm approaching this. I am dollar cost averaging into Bitcoin every month as long as bitcoin is under 20 or 25,000. And the reason for that is because I've got a 10 year time horizon. We saw so many people get wiped out as a result of just throwing their money into cryptocurrency because it's the next big thing and everything's going up. Retail investors got hosed because they had very short time horizons. Things are popular and sexy. So long as everybody's making money. And that gets the retail investor and the novice investor to just throw their extra cash into some random coin because everybody is getting rich but them. It's a very healthy thing to see that get flushed away. Remember what Warren Buffett says, be greedy when others are fearful. And also you know what Warren Buffett says? He says, with a long enough time horizon, it's very hard not to get wealthy. So if you believe in the space, if you believe in the thesis of crypto or Bitcoin or Ethereum, I'm actually most bullish on Ethereum. If you believe in the long term case, then it makes all the sense in the world to be buying right now, for me anyway, there were so many people who were saying, oh, I wish I could have bought Bitcoin at 30,000, I wish I could have bought Ethereum at 2,000. Well now we're way below those prices. So the way I'm approaching that is to dollar cost average and to leave it in there for 10 years. The way I see it is that there is asymmetric risk and reward here. If I buy Bitcoin at 17,000, my downside, okay, it could go to zero. But you know, it's mostly 50%, maybe 80% if we have another crazy crash. But the upside is 50x. Where else can I get that Asymmetric risk reward. Because I do think that there's a case that in 10 years Ethereum is at 10,000, maybe 20,000, in bitcoins at a million. I think there's a case for that over 10 years, maybe 15 years. But I'm not looking at it from what it's going to be a year from now. I'm looking at, okay, where am I going to put my cash for a very long time? And this is where a lot of investors are getting messed up in cryptocurrency. They're looking at where they can make short term returns rather than putting that attention into their business. The way you build wealth is building the business first and then deploying your profits into long term assets. And for me, part of that is cryptocurrency and I'm looking at this over 10 years rather than 10 months. And point number three, I think what we're seeing here is that profits matter now that interest rates are going up, now that the crazy bull run across all the different asset classes is over and things are coming down in value. What do you know? It's cool to turn a profit again. This is a very good, healthy part of the capitalist process. We cannot have a constant run up in prices and growth at all costs without there being profit. You've got to manage a business and your portfolio accordingly. So if all of your focus is in buying emerging companies and emerging industries with no regard for profit, it is time to reassess your strategy. We no longer have this long Runway for businesses to run unprofitably because the capital markets are getting drier. And so your focus has to be, where does my profit come from? We focus on the profitable business first and then we invest the profits into long term assets. This is why I say for entrepreneurs, the first step can in your financial freedom journey is to get a business to a hundred sales a day or $100,000 a month. That sounds like a big number to a lot of people. But $100,000 a month is just 100 sales a day of a product doing about $30 per sale. 100 times 30 is 3,000 every day. That's about $90,000 a month or just over a million dollars in sales. That's enough to have a really healthy six figure profit business. And that is where you're going to take a piece of that and put it into long term assets. During bull cycles, when everything is going up, entrepreneurs tend to take their eye off the ball. They take their eye off of the profitable business and they put it into where can they make the most money the fastest? Because everybody's making money fast in all these different directions. So they, they put more attention into things like Bitcoin or Ethereum or crypto markets or new raises for new products, projects rather than the thing that is producing the profit. And this is a wake up call that you can never take your eye off that ball. You have to build the business first to at least 100 sales a day. $100,000 a month in sales. A million dollar business where you can have a six figures in profit for you to invest and to play with. It's only then that you can move on to the next part of the process which is investing the profits. Now if you're watching this and you're like, okay, sounds cool for you handsome, charismatic, rich, white, privileged millionaires like Ryan. Listen, the way that you get to 100 sales a day and $100,000 a month is I recommend having four products that do 25 sales a day at a $30 price point. It's super reasonable to do that. You can do that in six to 12 months and then you can start speculating on your long term investments. And if you need help doing that, we have free resources around this video. We have a guide called 100 Sales a Day that'll walk you through the process of what it looks like to go from nothing to $100,000 a month with case studies and podcasts and free videos that you can watch to get you up to speed so that you can follow the process that we Recommend here@capitalism.com and then once you're there, that's when you can start speculating and have the peace of mind to know if Bitcoin does go to down 80% again or the stock market does go kerplunk, or if real estate does fall off a cliff. I've still got my million dollar business, which is where your focus needs to be as an entrepreneur. Anyway. All right, so that's what's going on in the crypto space and how we respond to it. My name is Ryan Daniel moran. I run capitalism.com I help entrepreneurs build compelling brands, get to 100 sales a day and have a multimillion dollar exit. If you want some help, there's resources around this video. Thanks for watching. I'll see you in the next one. Take care.