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To give credit where credit is due: This portfolio, suggested by Tanzanian cryptocurrency investor Sirjeff Dennis, encompasses a good dozen ideas .
On the other hand, eight of these suggestions — fully two-thirds of the portfolio — are allocated to the single, questionable asset class of cryptocurrencies.
Over the past couple of years, crypto has provided some remarkably good profits, in very short periods of time, for many investors stuck at home trading on their PCs throughout the pandemic.
Investors in Bitcoin today, for example, who hope to reap the same profits that investors in Bitcoin two years ago earned, are betting that by April 1, 2024, one Bitcoin will be worth approximately $330,000.
That’s about 15% of the total value of all currencies present in the world today — and three times more than the volume of all U.S.
Unlike Bitcoin, Nvidia stock represents ownership of a business that is growing — nay, thriving — and creating more and more value with each passing day.
At current valuations, Nvidia stock has a market capitalization of about $694 billion — 71 times the $9.8 billion in profit it earned last year.
If that were to happen, however, while earnings grew only 21% per year, it would mean that in two years’ time, Nvidia would have a market capitalization of nearly $3 trillion versus net earnings of only $14.3 billion.
But again — assume they’re right about the earnings growth, and assume the stock also grows as fast over the next two years, as it did over the last two years.