The freshmen guide for the crypto class of 2025: Chapter 2
If you have not read chapter 1, please read it here.
In the last chapter, I covered my parts per million or ppm model of crypto investing. Here is a quick summary.
- Choose which cryptocurrencies/token buckets you would like to be in your portfolio. It has to be purely on the merit of a coin (merit as you define it).
- Decide what ppm of circulating supply of coins you would like to hold.
- Work on filling each bucket.
- Sell if you really need money and go back to filling the bucket.
How about lost bitcoins?
So in the last chapter, I had set the following values for ppm.
- BTC — 19 BTC
- ETH — 116 ETH
- XRP- 100,000 XRP
One question comes about lost bitcoins that will likely never be recovered. It is a fair point. Some studies claim that as many as 20% of bitcoins or 3.7 million can never be recovered. This revises our ppm numbers to:
- BTC — 15 BTC
- ETH — 116 ETH
- XRP- 100,000 XRP
Both BTC and ETH have inflation. BTC is around 4% and ETH 4–5%. We can assume 5% for both for ease of calculation. It means that you need to add 5% of each coin every year to keep your portfolio balanced. For ETH, it’s easy as staking is providing rewards between 6–7%. BTC, for now, you have to buy more each year.
