 | EXPERIMENT - Tracking Top 10 Cryptos Of 2020 - Month Forty-Four – UP 291% The full blog post with all the tables is here. Welcome to the monthly recap for the 3rd of 6 homemade Top Ten Crypto Index Funds. The 2020 Portfolio is made up of: Bitcoin, Ethereum, XRP, Tether, Bitcoin Cash, Litecoin, EOS, Binance Coin, BitcoinSV, and Tezos. tl;dr:
Month Forty-Four – UP 291%The 2020 Top Ten Crypto Index Fund consists of: BTC, ETH, XRP, USDT, BCH, Litecoin, EOS, BNB, BSV, and Tezos. August highlights for the 2020 Top Ten Portfolio:
This group of cryptos highlights the benefits of an index fund strategy: the +291% return of the 2020 Top Ten Portfolio has outperformed eight of the individual component cryptos contained within the Index, including Bitcoin. Only by guessing right and throwing all your eggs into Binance Coin and/or Ethereum would you have performed better than spreading out the risk, index style. August Ranking and Dropout ReportTop Ten dropouts since January 2020: after forty-four months, half of the cryptos that started in the Top Ten have dropped out: EOS, BSV, Tezos, Litecoin, and Bitcoin Cash have been replaced by Cardano, DOGE, Toncoin, SOL, and USDC. At #55, BSV has sunk the lowest since January 2020. August Winners and LosersAugust Winners – BTC and ETH fell the least this month, both -12%. August Losers – Litecoin turned in this month’s worst performance, losing nearly a third of its value (-32%). Overall Update – BNB holds on to first place, but second place ETH gains ground. Small majority of cryptos are in positive territory. 2020 Top Ten is the best performing Portfolio.At +292%, the 2020 Top Ten Portfolio continues to be the best performing of the six Top Ten Crypto Index Fund Experiments. 60% of the 2020 cryptos are in positive territory, BSV, BCH, Tezos, and EOS the exceptions. Binance Coin continues to hold a significant lead, but ETH has made up a lot of ground in recent months. The initial $100 investment forty-four months ago into first place Binance Coin? Currently worth $1,539, an increase of +1,439%. In second place is Ethereum, up +1,182%. EOS is the worst performer in the 2020 group, down -76% since January 2020. Total Market Cap for the Entire Cryptocurrency Sector:As a sector, crypto is up +453% over the forty-four month lifespan of the 2020 Top Ten Experiment. If you were able to capture the entire crypto market since January 2020 (+453%), you’d be doing quite a bit better than the Experiment’s Top Ten approach (+291%) and ridiculously better than the S&P (+40%) over the same time period. Much more on the S&P below. Crypto Market Cap Low Point in the 2020 Top Ten Crypto Index Experiment: $185B in March 2020 (aka Zombie Apocalypse). Crypto Market Cap High Point in the 2020 Top Ten Crypto Index Experiment: $2.6T in October 2021. Bitcoin Dominance:BitDom ended August at 48.4% and has seen a steep rise over the last few months. Here are the high and low points of BTC domination since the beginning of the 2020 Experiment: Low Point in the 2020 Top Ten Crypto Index Experiment: 38.1% in November 2022. High Point in the 2020 Top Ten Crypto Index Experiment: 70.4% in December 2020. Overall return on $1,000 investment since January 1st, 2020:The 2020 Top Ten Portfolio is now worth $3,914 (+291%) from the initial $1k investment. The 2020 Portfolio remains the best performing of the six Experiments. Below is a month by month ROI of the 2020 Top Ten Experiment, to give you a sense of perspective and provide an overview as we go along: Combining the 2018, 2019, 2020, 2021, 2022, and 2023 Top Ten Crypto PortfoliosSo what about combining six years of the Top Ten Crypto Index Fund Experiments?
So overall? Taking the six portfolios together, here’s the bottom bottom bottom bottom bottom bottom line: After six annual $1k investments ($6,000 total) in the 2018, 2019, 2020, 2021, 2022, and 2023 Top Ten Cryptocurrencies, the combined portfolios are worth$10,470. That’s up +75% on the combined portfolios, down from a +533% November 2021 all time high for the Top Ten Index Fund Experiments. Lost in the numbers? Here’s a graph to help visualize the progress of the combined portfolios: In summary: That’s a +75% gain by investing $1k on whichever cryptos happened to be in the Top Ten on January 1st (including stablecoins) for six straight years. Comparison to S&P 500I’m also tracking the S&P 500 as part of my experiment to have a comparison point with traditional markets. Since the S&P 500 has returned +40% since January 1st, 2020, that same $1k I put into crypto in January 2020 would be worth $1,400 had it been redirected to the S&P 500 instead. Crypto over the same time period? The 2020 Top Ten Crypto Portfolio is returning +291%, worth $3,914. That’s a difference of $2,514 on a $1k investment. But that’s just 2020. What about other entry points? What if I invested in the S&P 500 the same way I did during the first six years of the Top Ten Crypto Index Fund Experiments since January 1st, 2018, what I like to call the world’s slowest dollar cost averaging method? Here are the figures:
Taken together, here’s the bottom bottom bottom bottom bottom bottom line for a similar approach with the S&P: After six $1,000 investments into an S&P 500 index fund in January 2018, 2019, 2020, 2021, 2022, and 2023 my portfolio would be worth $8,220. That is up +37% since January 2018 compared to a +75% gain of the combined Top Ten Crypto Experiment Portfolios. To help provide perspective, here’s a look at the combined five year ROI for crypto vs. the S&P up to this point. Conclusion:For those who have supported the Experiments over the years, thank you. For those just getting into crypto, I hope these monthly reports can somehow help with perspective as you embark on your crypto adventures. Buckle up, think long term, don’t invest what you can’t afford to lose, and most importantly, try to enjoy the ride.A reporting note: I’ll focus on 2023 Top Ten Portfolio reports + one other portfolio on a rotating basis this year, so expect two reports per month. August’s extended report covers the one you’re reading here, the 2020 Top Ten Portfolio. You can check out the latest 2018 Top Ten, 2019 Top Ten, 2021 Top Ten, and 2022 Top Ten reports as well. [link] [comments] |
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