Crypto Thought Experiment: What will happen if you put 20 in every crypto?

Crypto thought experiment

India being the youngest nation has the highest Gen Z population in the world. Most of these Gen Z citizens are entering the employed stage of their life with reasonable annual income. This is also the population who is willing to explore new avenues of investments and Cryptocurrency tops the list with the promise of better returns. Traditional investments are losing sheen with the young population.

One of the main reasons for the emergence of cryptocurrencies as a better investment opportunity is the obvious higher returns. But deciding on which crypto to invest in is not as easy as one would find it with stock markets. A lot of it is just speculation. Other than social media and websites of cryptocurrency companies, it is very difficult for an average investor/trader to find enough information to make a logical decision about crypto investments.

It is reasonable to say that most of the individuals investing in cryptos are purely speculating. Let’s take this game of speculation a little further and do a little thought experiment.

What would happen if you put Rs. 20 or $ 20 in every crypto?

Between 2018 and 2019, Bitcoin moved with an average price change of 2-3% with swings of 15% on an average every day. This volatility continued even after Bitcoin became mainstream. Volatility is the only thing that we can be sure about in Cryptocurrency trading. LUNI is relatively less popular with a rank of 3888, in 2022 the crypto LUNI has shocked everyone with a single-day gain of 3500%.

We are not actively suggesting any cryptocurrency investments, but if you are to invest, it makes sense to invest in multiple cryptos than putting all of your money in one or two cryptos, like diversifying stock portfolios.

The upside in this thought experiment is that when you invest 20 in a crypto, the worst-case scenario leads to a loss of 100% capital which is your initial investment of 20. When you invest 20 in every crypto, for every 5 crypto coins that are completely wiped out, 1 crypto of 500% returns would cover it. Not so bad, as long as the said volatility continues to drive markets. This is just a thought experiment, we don’t recommend you do this actually, but if do it anyway, let us know how your portfolio is doing on an average every day, we might actually find something useful to the average investor to help them make some bucks. This can be done using any investment simulators available online or apps that can be downloaded on your phone.

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