Transcription
Welcome back. So, in today's Ask George, I'm going to answer a generic question that a lot of you guys may be wondering about or want to ask about, especially if you're new to the space. And that is, how would I build a crypto portfolio today?
Okay, so to make it interesting, I decided to ask AI. I decided to ask ChatGPT to build out a $10,000 portfolio and how it would populate its portfolio. First of all, which coins and how much of each coin? And that is what this video is about. And I'm going to go through that list and I'm going to give my feedback whether I agree with it or not, and if not, why I think it's better to repopulate with something else.
All right, so that is the premise of this video. So I already gone ahead and asked ChatGPT. I'm like, "Hey, build out a crypto portfolio. Um, $10,000 worth." And I got the list with me. Okay, I didn't memorize it, so I printed it out. Um, so here's the list. So overall, there's one, two, three, four, five, six, seven, eight. There's eight different coins and the breakdown is, uh, there's a 30%, 20%, 15%, two 10%, and three 5%.
Okay, so can you guess which coin at 30% of the portfolio? Should be a no-brainer. It said Bitcoin. Okay, so Bitcoin, 30% of the $10K portfolio should be Bitcoin. So that's $3,000. Do I agree with that? Well, considering it, if you asked me this six months ago or a year ago, uh, I would say no. I would say Bitcoin should at be at least 50% of your portfolio. It is for me, my DCA portfolio. Those of you guys that watch it or follow it, uh, it's at 50%. My own personal portfolio is above 50%. So if you asked me this again six months ago, a year ago, I would say no, I don't agree 30%. I think 50%. But because of a few weeks ago, it seems like alts are now coming back and are extremely strong, and we are, it seems like, at the very beginning of altcoin season. I think 30% Bitcoin is good. I think it's good. Uh, I I'm willing to say, hey, dropping it from 50 to 30% could be good at this point in time because of how strong the alts are. So, I'll I'll agree with that. 30% for Bitcoin.
Now, number two, at 20%, uh, ChatGPT picked out Ethereum. So, $2,000 out of the $10,000 portfolio is Ethereum. And is that a good pick? I think so. I I don't, you know, I mean, personally, I think there are better plays. I think there are projects, there are chains that are more promising at this point because Ethereum is kind of like, it's the big daddy of smart contracts, but it's old at this point. It's almost like AOL, okay? Um, when the internet was up and coming. However, I will concede that you cannot skip. I don't know if you guys heard that, that 392 just sounds awesome. Um, however, I will concede that Ethereum is probably important to hold at this point because there's a lot of institutional interest. Just like Bitcoin, ETF inflows for Ethereum has outperformed Bitcoin even for the last week. That's significant. You have a lot of big institutions like Tom Lee's fund and others that are loading up on Ethereum. So 20% Ethereum, do I agree with it? Um, it may be high, but, you know, I I'll go with it. I'll go with it. I think it's a good amount.
So a lot of you guys may just stop right there with Bitcoin and Ethereum. So you may do like 60% Bitcoin, 40% Ethereum. That could be okay. Um, but moving on, I do think AI was smart to add others, and I agree with it. So, the third biggest allocation in this $10K portfolio is Solana at 15%. So, $1,500. Solana is one of my favorites, and I think a lot of you guys know that. It went through a lot of controversy back in the day with FTX. A lot of people thought it was going to die. It came back strong and it really got propelled earlier this year because of memes. But uh, outside of memes, you have a lot of promising DApps. The metrics of Solana is through the roof. They're going through an upgrade right now to make things even more efficient and better. And, you know, memes are going to come back. So, because of all these things, I'm very bullish on Solana. And they're going to get their spot ETF too pretty soon. So 15%, you know, if it was me, I would up that. I would equal to at least 20 and I might even go higher and go on 25 um because I believe in Solana that much. I I I think 15% is low. I would go 20 or 25%. I could even put at 25% because uh I think the potential for it is even greater than Ethereum.
All right, number four. It picked out Chainlink and put 10% into Chainlink. Interesting pick. Chainlink, link marines, uh, kind of hovers around every cycle. It tends to be slow and then it picks up. Uh, Chainlink is important. You know, it's the biggest oracle, decentralized oracle out there. Every single DeFi project utilizes them for their price feeds. But besides that, now they have CCIP, which is their L2, their interoperability layer. A lot of a lot of people use it for cross-chain communication and they're into a lot of major things like RWA as well. So 10% in Chainlink, that's not bad. That's not bad. I would put it maybe like 5%. I don't know about 10%. I would go maybe like 5%. But, you know, if you go with 10%, that's okay too. But just remember Chainlink, there are times where it's just really, really slow and it does not move, and then all of a sudden it starts moving. That's just how it goes.
All right. Next up, fifth on the list is Sui at 10%. So, they made it the same as Chainlink. Uh, I don't know if you guys have been keeping track. Sui this weekend, blew up. It's at like 420 again. Um, and it made a huge recovery. Sui's, I'm very bullish on Sui. I've called Sui the Solana this cycle because they're growing the same in terms of the user base, the community, TVL, DApps, everything. They're growing by leaps and bounds. So for me, I definitely think 10% Sui is underweight. I would bump that up to at least 15, if not 20%. I think that, you know, that that's more warranting. 10% is quite low. So uh, so that's next.
Okay. And then next one, ChatGPT picked out Arbitrum at 5%. Arbitrum. Interesting. Arbitrum is kind of like a sister chain to Sui. Uh, even though they have no relation to each other, but the teams, both of the teams came from Facebook's project. So they use the same programming language, Move. Um, they're, you know, they do operate differently in terms of their their tokenization, uh, their, um, what's it, inflation rate and stuff. Um, and they have, you know, different ecosystems, but Arbitrum is an L2 for, um, for Ethereum. It's more EVM focused, and they've been making moves, too, in in a lot of different areas. So, you know, they just came out their new, uh, their new storage system, too. I know they both, funny, both Sui and Arbitrum both came out with a storage system. Sui came out with Walrus, which is more of a cold storage. Arbitrum, I forgot what they call theirs, but it's more of a hot storage. It's supposed to be meant for like AI and video and things that have really low latency. So, it's interesting that both came out with, uh, storage systems. So, Arbitrum at 5%. I think that makes sense. You know, I can't think of a better one. Maybe, you know, instead of Arbitrum, I would pick out something like Avalanche, maybe because they're into gaming and RWA, but, you know, Arbitrum at 5% isn't a bad pick.
Next up may surprise you guys. The next one it picked out is Pepe at 5%. Pepe/Meme. That's what it gave. So, basically, it's saying, "Hey, risk your portfolio a little bit, okay? Put in something that could have explosive growth," and it chose out Pepe. But, you know, obviously there's a lot more memes. Bonk has been doing very well recently. You got WIF, you got, uh, PEPE, and all the other guys that's out there. Even Doge has been doing very well. I mean, there's so many out there, right? I agree. I think putting 5% in meme makes a whole lot of sense. Okay? If it goes down to zero, you lose 5%. It's not going to kill your portfolio. But the potential, the upward potential is massive. Some of these go up 10, 20X. Now, can Pepe do a 10X or 20X? Probably hard, but I think 10X is doable. 20X, 50X, probably not. But some of the smaller memes, they have to do a 10X just to get back to their previous highs. So, there's definitely more potential there. So, um, so I think Pepe is a good pick. It's a big cap meme. I think it could do very well. 5% makes a lot of sense.
Uh, lastly, it gave stablecoin reserve at 5%. So I think this is referring to cash, basically. Um, 5% I think is quite low. I think it's good to have more cash. Now, this also depends on your income level. If you get a whole bunch of income all the time and you don't really need to take profit, then, you know, your stablecoin or just cash pile could be lower because you always have something coming in that you could use to DCA. Now, if you're not in that situation, then yeah, you need to take profits, have your cash pile bigger and save for a rainy day, right? So, in case things come down, you could buy or you could DCA over a long haul. Uh, so it gave 5%. Honestly, I think that should be higher. I think that should be anywhere from like 20 to 25%. Which, if you do the math based on everything I said, it's over 100%. How I calculate cash is separate than like the overall 100% for the portfolio. So that's why I say that. So basically, if you have a $100K portfolio or $10K portfolio in this case, then you should have extra two to two and a half thousand on the side that's not within the the portfolio. Okay? I don't know if that makes sense, but because if you utilize 20 to 25% of the $10K, you're not left with much, right? So that's that's how I calculate. But I do think cash, having a cash pile is important because there's a lot of volatile moments. There's a lot of good buy opportunities. You don't want to miss out on it.
All right. So that is it. So ChatGPT or AI in this case built out a $10K portfolio with Bitcoin, Ethereum, Solana, Chainlink, Sui, Arbitrum, Pepe, and some stables. And quite honestly, that's not a bad list. That's a pretty good list. Now, some notable uh mentions that didn't make the list. For example, a lot of you guys are XRP fans or Cardano fans. I definitely think you can put it in there. Like, for example, Chainlink, that 10% Chainlink that Cash gave, that can certainly be replaced with XRP or Cardano. I think XRP, in my opinion, is a better better hold at this point. That Arbitrum at 5%, that could be replaced with, let's say, Cardano. So, some of these could be interchanged. Um, and definitely the meme, right, the Pepe meme could be interchanged with something else, too. But overall, it's not a bad list. And I gave you my opinions on, you know, the allocations, how I would tweak it or change it. What do you guys think? Do you guys agree with this list or don't? Do you like my list and my allocation portfolio, uh, better? Leave your thoughts in the comments below.
All right, guys. That's it for this video. Hopefully you guys enjoyed it. Smash it a like. Subscribe to the channel. Take care. Bye-bye.