Saturday, August 12, 2017

Don't Crybaby To Me About Bitcoins & Cryptos

The market bubble popped a while ago and went from 120b to 60b.

Now we're back above 120b. If you were in ANYTHING at that point of time, your portfolio would've been up about 100%.

I am currently up over 100%.

That statement is not meant to be a brag, but a fact verified by me that such intense gains are not just imaginary, they are possible.

(I have to point out that I am expecting another correction again. But hey, the crypto markets are volatile and random af, if you're getting into this you should already know the risks involved)

Screw bonds. I've liquidated all my Singapore Savings Bonds and I have put 100% of that capital into cryptos. Insane? Madness? Maybe.

Screw the stock market. I'll be liquidating large chunks of my stock portfolio too. At least 20-30% will be liquidated by the end of the month if things go as planned.

A lot of people cannot grasp the fact that 0.01% of the population that hold cryptocurrencies like Bitcoins and whatnot are getting and will be insanely rich.

Isn't it unfair? The wealth distribution gap is so wide!

My response: So what?

I am going to be insanely wealthy and fabulous because I put in real, spendable SGD and bought these online digital funny money that could be worthless the second after the SGD leaves my bank account. I took this risk. You didn't.

Let that sink in.

I gave away real money today for something that is extremely risky and could be worthless tomorrow.

What should my risk/reward be? It should be freaking high since normal people wouldn't even want to spend $1 on such things. They don't want to be involved in it. They don't want to know about it. Heck, I'm sure a lot of people would just want it to go away.

If Bitcoins goes to zero, who is going to refund me and pay me back? Nobody.
If Bitcoins go to the tens of thousands, who is going to get rich af? Me.

I take the risk, I reap the rewards.
You didn't take the risk, you don't reap the rewards.

Don't think of it as a loss to you and a gain to me. Just think of it as a missed opportunity.

If you want to sit on the fence, that is totally okay. I don't blame you. I was sitting on the fence looking over at Bitcoin and other cryptos occasionally over the past few years until I reached the point where I decided to jump the fence.

Now at this juncture, I have put real money in this thing. To me, it's real and it's the future. I see no signs of development in this area slowing down.

HUGEEEEEEEEEE RISKS. Very huge. I'm risking 100% of the capital that I put in. Could it go to zero? Yes. Will it? I'm betting thousands of dollars that it won't.

I have to reiterate it again - I'm taking huge risks, therefore I will be reaping huge rewards if it is successful.

You can use your SGD to save in the bank, invest in the stock market, buy new and shiny gadgets and eat delicious food. You are NOT taking the risks that I am, why should you be rewarded what I get?

Anyone who throws a bitchfit about cryptos being unfairly distributed ought to ask themselves this:

what the f*** is stopping you from getting in now?


  1. Totally agreeable, high risk high gain, but i think it is logical, it is the new gold standard.

    But i somehow of low IQ, still find it hard to understand bitcoin logic.

    I think i better off make an effort to study this ten time over and try to understand this vestment before i miss the tree for the forest, I love your read here,

    Thanks for sharing.


  2. sorry should miss the forest for the tree,LOL


  3. The world market is some 60 trillion, imagine just a 1% move into this bitcoin going to send it a few hundred percent higher. And it is just 1%, imagine there is mad rush of 5% move into here, I do see the prospect, it is worth the risk.

    Never miss the forest for the tree.


    1. Hi Peter,

      It's not about having high IQ. As long as you understand that Bitcoin is a monetary system that cannot be manipulated by any single actor (think governments, central banks, large corporations) and you think that people might prefer a currency that is immune to such manipulation, then Bitcoin is a worthwhile investment to consider.

      I doubt the world's entire economy will move into cryptos, but I believe a significantly large portion will be.

      All the best, stay safe.

    2. I believe you will be successful. The future belong to the brave who carry it out after doing due diligent like you. My IQ is really low, I need to read and read many times over before i understand, as my highest education is sec 4 education. I have look through coinbase and coinhako, which will you recommend? Thanks. I think coin base is good as it has 2 step verification. What is yours? Can share? Thanks again. Love to read your blog secretly.


    3. Hi Peter,

      Don't put yourself down, I think this definitely can be done, as long as you go slow and don't get ahead of yourself.

      I think both are fine and I use both, but I personally prefer Coinbase because I can charge it to my credit card and clock up spending, haha. Coinbase does have 2FA, but so does Coinhako, so both are quite safe as long as you can keep your 2FA device secure.

      You don't have to read my blog in secret, haha!!

  4. Replies
    1. Hi Lizardo,

      I was skeptical about Bitcoins and all other cryptocurrencies for the longest time. Only after I understood the tech behind it and the reasons why it exists, it made me change my mind.

      After finding out that MAS and the banks did Project Ubin, Japan and Korea legalizing cryptocurrencies, and seeing how big companies are now getting involved in the space in an extremely rapid fashion tells me that, without a doubt, blockchain technologies is here to stay.

      However, the million dollar question is which cryptos will be the ones that survive. 90% of cryptos will die.

      I'm willing to bet that within 20 years, stocks will only be traded with blockchain technology, at least 1 nation would have issued their own cryptocurrency and the world recognizes and accepts 1 or a few cryptocurrencies as global currencies.

    2. Within 10 years, if the govts got guts & are willing, stocks & bonds will have zero-transaction fees. And you can even have free sell-this-buy-that combination e.g. rebalancing from equity ETF to bond ETF, and vice versa.

      Exchange companies like SGX will be destroyed, or totally change their business focus & revenue source.

      Currently I view BTC something more of South Seas bubble that suckered Isaac Newton. There is some real underlying economic value, but whether the price is an accurate reflection or whether it's current form & execution is long-term feasible is anybody's guess. The South Seas Company turned out to be finally worth about 5% of the bubble peak -- it was still a real revenue-generating entity, just not worth so much. Vested with couple hundred bucks Toto money!! :)

    3. Hi Anon,

      I think you are right. The entire business of recording information, especially for things like ownership, will be serverely disrupted by blockchain. It is one of the lowest hanging fruit for that tech to enroach on.

      I too do believe that financial securities will have extremely low tx fees. I never thought of rebalancing, but yes, that would work out great too! Many businesses in the line of being trusted third parties will have their services not needed anymore.

      Yes, I do see your point regarding BTC - it does have value, but perhaps the value now is way overinflated. I think at this snapshot of time, it is overvalued, but in the long run I think it has plenty more to go. Anyway, we will see! Luckily for me, my crypto portfolio is lightly allocated in BTC.


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