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Adam Cochran spoke about his cryptocurrency shopping list for year 2022. He gave his own explanation for why these assets and how he decides which crypto to shop for. He has also listed the bull case for the individual assets in his bucket list.
He has published a shopping list, which he thinks will outperform in 2022 and calls it his priority list to buy the dips.
Solana, Adam feels has a breakout year in 2021 and therefore opines it will be tough to outperform the market again in 2022. SOL is expected to go up a bit more than the index list of crypto.
Adam also points to how a working product is important and on how “people drastically underestimate the time required to build, grow adoption, and sustain market outpacing.”
Adam also acknowledged how not all the assets he states will be a hit list in 2022. Further stating, “No portfolio is 100%, and you don’t weight all assets in a portfolio equally.”
He summarized his criteria stating, “Cash Flow is King and Infrastructure is Queen.”
In Adam’s own words Worth Noting For Investors: Because 2021 was a crypto growth cycle, where while trapped at home, with stimulus checks in hand, and eyes all a glow we collectively looked at markets and thought “Yup this dog coin is probably the future”.
So, anything that didn’t bottle up Hopium was punished and drastically over sold. Because the reality is, most people have no sense of the time, complexity, cost, or upper bound potential of a growing business.
At the end of the day all that matters is cash and value. If you provide a valuable service worth protecting or controlling, people will buy. If you have a profitable product that shares revenue, people will buy.
Because cash sustains teams of builders, builds products that can cross the chasm, and that can provide value. That’s why you’ll see a lot of my 2022 picks have classic defi products of teams who have spent 5+ years building in any market.
As a long-term value investor, I may rebalance my portfolio, but I’m willing to have 60%-70% miss rate, hold projects for 5+ years, and eat losses for up to 3 years on anything I buy.
Normally, I don’t have that kind of downside, but investing in real assets that aren’t just hype is like start up investing, you need to be in it’s long term.
Even protocols that don’t drive give revenue to a token (yet) still see huge demand, such as lending protocols which had an average 10x increase in borrow rates in 2021.
Dissecting the quality and origin of the revenue is important (and complicated) but what is clear, is that protocols that have *actual* revenue have often drastically *underperformed* in 2021.
In most crypto cycles we didn’t really have the equivalent of “value” stocks. Almost everything was priced on its ‘future’ (and let’s be honest, retail has no clue what things are worth, especially in the future).
Those who want to know the exact list should check out the direct thread, which is very long.
