Applying the philosophy of Luiz Barsi Filho — the greatest individual investor in the Brazilian stock market — to the cryptocurrency market is, in fact, a paradox.$XRP $BTC
It is important to start with a fundamental warning: Luiz Barsi is a fierce critic of cryptocurrencies, calling Bitcoin a "fantasy" and asserting that it has no intrinsic value.
However, it is possible to adapt the "Barsi Method" mindset (Focus on Dividends, Long Term, and Accumulation) to the crypto ecosystem, filtering the market chaos to seek a passive income generation strategy.
Here’s how to translate the pillars of AGF (Guaranteed Future Shares) to the crypto world:
1. Focus on Income Generation (The Crypto "Dividend")
The central pillar of Barsi is not the appreciation of the share but the cash flow (dividends). In the crypto world, the direct equivalent is Staking.
The Barsi Logic: You do not buy a stock to sell it for a higher price; you buy to be a partner and receive part of the profit.
The Crypto Application: You do not buy crypto just hoping the chart goes up. You buy assets that pay rewards for holding them and validating the network.
What to look for:
Proof of Stake (PoS): Focus on blockchains that pay native rewards (e.g., Ethereum, Solana, Cardano, Polkadot). This is the closest thing to a "dividend".
Yield Real: Avoid projects that pay interest by printing inflationary tokens without utility. Look for networks that generate real user fees (like Ethereum, which charges gas fees and redistributes part to validators).
2. Perennial Sectors (Blockchain Infrastructure)
Barsi invests in sectors that "never die" and that everyone needs: Energy, Banks, Insurance, Sanitation. In crypto, this translates to Layer 1 Infrastructure.
The Barsi Logic: Solid companies, market leaders, with barriers to entry.
The Crypto Application: The "roads" through which digital money passes.
Ethereum (ETH): It is like the "electric company" of the decentralized internet. Everyone needs to pay ETH to use the network.
Bitcoin (BTC): Although it does not pay native "dividends" (except in certain secondary layers), it acts as the "Central Bank" or store of value (digital gold), offering the perennial security that Barsi seeks in large banks.
Golden Rule: Stay away from Memecoins or speculative game tokens. They do not fit into Barsi's "perennity" philosophy.
3. The Ceiling Price and "Buy Cheap"
Barsi never buys a stock at any price. He waits for the moment when the Dividend Yield (return on the price paid) is attractive.
The Barsi Logic: Buy when the market is in panic.
The Crypto Application: Buy during the "Bear Market" (Crypto Winter).
A Barsi-style investor in crypto accumulates massively when Bitcoin drops 70-80%, ensuring a low average cost.
He ignores the euphoria of the historical peak. If the asset rose 300% in a month, the "Crypto Barsi" does not buy.
4. The Snowball Effect (Compound Interest)
The secret of Barsi's wealth is the systematic reinvestment of dividends to buy more stocks, which will pay more dividends.
In Crypto: The rewards from Staking should be automatically reinvested (Auto-compounding). If you earn 5% per year in ETH via staking, that new ETH should go back to the validator to generate more ETH. The goal is to accumulate the number of coins, not to look at the value in Dollar or Real in the short term. The Risks of This Adaptation
If you are going to apply the Barsi method in crypto, you need to be aware of where the strategy fails:
Extreme Volatility: An electric utility stock rarely drops 50% in a week. Ethereum can drop. Barsi seeks predictability; Crypto is chaos.
Custody Risk: Barsi trusts CBLC (B3) to hold his stocks. In crypto, if you lose your private key or the exchange fails, you lose everything.
Long-Term Uncertainty: We know we will need electricity in 30 years. We don’t know if Solana or Cardano will exist in 30 years.
Conclusion
The "Barsi Method in Crypto" would be a strategy focused on accumulating Ethereum and Bitcoin, putting them in Staking (in the case of ETH) or secure yield platforms, reinvesting everything during crypto winters, and ignoring daily price fluctuations with a focus on 10+ years.
