Quiet few months for mij – its bot very hard to find good ideas.
This has led mij to look outside the hammered path and I have determined to waterput a petite portfolio weight ter bitcoin / related cryptocurrency. I’ve somewhat switched my mind on this. I did think of them spil tulips. Now I think they might not be, and even if they are – there is chance for money to be made. All one needs to do is dual your money and sell half – ter crypto world an effortless thing to do, and its all free from there.
I’m also investing a puny amount ter Kryptonite 1 – ter effect this is a downright off the radar bitcoin investment trust trading at a discount to NAV. To avoid confusion this is te a separate postbode.
I’m not entirely persuaded thesis are the future of money. I am coaxed they might be and if they are there is still potential for substantial gains. I’m also a bit worried I am buying at a high – never a good thing to do. Project is to ease money ter little by little – up to say 5-7% of the portfolio overheen the next duo of years – buying dips. I have only bot ter thesis for a duo of months – at very low portfolio weight and am already up a crazy 49%.
Whilst it might be thought wise to trade ter and out opportunistically I think the best idea is to aim for buy and hold spil much spil is possible – this is where the truly big money will be made.
If you look at some of the show of thesis coins doubling / tripling is common, Ethereum is up a few thousand procent ter a duo of years. ?1000 investment becomes a million. Ok, not everyone can pick a winner – but just a bit of this sort of terugwedstrijd can convert a portfolio. A good source of information is http://www.coinmarketcap.com. Unluckily I dont have a fat amount of money and whilst my typical 20-30% a year will get mij rich leisurely if I can stake a little bit and get a much higher comeback even at higher risk this makes sense. I have to take chances to escape my situation.
I think there is certainly a degree of a bubble ter cryptocurrency. Lots of coins are launching which are scams / just plain stupid. Having said that electronic money is a good idea. There is also request for money unregulated by government. You can tell by looking at the number of times this idea has come back – from e-gold te the 2000s to paypal and variants to bitcoin.
Total market Cap of all coins is $156bn. Evidently, the size of the UK black economy is $258bn – to say nothing of the surplus of the world. Even if bitcoin are only used by criminals / arms dealers and such – it can go much further. Generally the criminal fraternity arent that well educated or into technology – they are a conservative bunch. They are however, innately slim and acute – eventually they will realise that this is a good way of transferring / laundering / parking funds. This alone will permit for a considerable increase te capitalisation of currencies.
There are other uses – hiding money from creditors / spouses / tax, low cost/ low risk transfers for people fleeing various places. Ter lots of the world getting around currency controls is a major reason why this might be attractive. Holding crypto hits specie ter an unstable environment. Ter the US crypto is an excellent way of getting around the various prohibitions on gambling. It also has to be said that after quantitative easing with asset price bubbles and high levels of government / individual debt, inflation is a real possibility. Through history this has bot the most common way of resolving thesis sorts of issues. Fresh currency, outside the control of government and not vulnerable to this sort of manipulation is one solution to this problem.
I also think the world is ready for a gigantic bubble. There is a loterijlot of liquidity around looking for a huis. Cryptocurrency is very hard to value ter any traditional sense. If you believe it is money it is worth something, if not it is worthless. This is identically true of gold, paper money, diamonds or lots of other things. Money is a social concept, not a thing…
There are problems – technically working with thesis coins is sophisticated. You can hold thesis coins ter an online wallet such spil coinbase or on an exchange. To use an analogy thesis are like vaults holding your gold. A problem exists spil legally bitcoins are not gold – they are more tokens like Disney dollars. They are therefore unregulated – your bankgebouw can lightly run off with your money. Worse, if your canap is robbed, your money is gone and you can’t get it back. You can hold them ter your own private wallet on your PC – this presents technical challenges – you can liberate your password, you can get hacked. There are no effortless solutions to any of thesis problems. There is a further challenge – if your currency has a severe enough bug te its code – a hacker could, ter theory steal it.
The volatility makes thesis interesting to hold – 20% to 50% daily moves are not uncommon. This makes them not spil useful for holding value spil they could be – but spil they become more mature I would expect value to stabilize. The total value of all cryptocurrency is $159bn of which $71bn is bitcoin. Even this overstates it – lots of early Bitcoin were lost so some of that value is possibly not real. To waterput this te setting all crypto are worth about spil much spil Cisco, te the overall scheme of things not that much… If investors determine to waterput just 1% of their portfolios into this the potential gains are phenomenal.
My portfolio is spil below:
I would love to know what people think, this is very speculative but I believe still has good risk / prize. I think most of my readers are fairly hard-core value investors who dislike the more speculative side, but things like this are why I describe myself spil an investor / speculator and not just an investor!