Note 2: Bitcoin

Note 2: Bitcoin bubble

Dear Internet


Cryptocurrency has been in the news since early last year and it has captured the imagination of many investors and speculators alike. However, there is a lingering fear among some people that it might be a huge bubble waiting to pop.

Honestly, I have not brought any cryptocurrency yet and even though I would like to, I can’t bring myself to do it. Over the past 3 months, I have been reading up heavily on this subject and would like to share with the readers on my learnings and thoughts.

The rise of cryptocurrency has been likened to the Tulip Mania which is one of the earliest recorded bubble in modern history. Needless to say, the results for those who speculate during the bubble didn’t end up. I will not compare the Tulip Mania to the Bitcoin bubble that we see now, I believe (keeping my fingers cross) that there are some cooler heads around and the speculation has been restricted to a few minority. At the same time, I believe that the reasons behind the bitcoin bubble are due to the following
FOMO (Fear Of Missing Out) among the millennials
The mistrust in government
The need for a more efficient and effective way to move money around the world
Bitcoin has gone down quite a fair bit; will it go up or will it crash? I will not be able to predict. The cryptocurrency fanatics have been touting the technology behind it as being superior to other currency format or even investment. I have my doubts.
However, if you must participate into the bitcoin maniac if you must, I will strongly suggest you set up a punting fund as means to control your emotion.
Good luck and good night!

Comments

Post a Comment

Popular posts from this blog

Note 17: Oct Update

Note 17 – Oct Update Oct 2018 hasn’t been the best of month for my investment. In fact, it was stomach churning to a certain extent. The total portfolio further declined by -3.6% MOM, and a -6.4% YTD. The main reason was the further escalation of the trade war, decline in the tech stocks, coupled with decline in the China market. As I am writing, it is already in the mid of Nov and the market has already recovered per se. These are the ups and downs of an investor, and as they say, live by the sword, die by the sword. The portfolio declined was mainly exacerbated by the huge decline in my Singapore portfolio (which consist of my cash investment and my SRS). I shall not go into individual stocks, but the STI “blue chips” don’t seem so royal at this stage. Current cash at the moment stands at 15%. Singapore portfolio The Singapore fund is still on the negative, but this time is the rare time, it actually did better than the benchmark (not really that of a consolation as well)...
Read more

Note 14: August Update

In the month of August, the portfolio suffers a slight decline, but with all the expected issues around trade taking place. I believe that this is to be expected. There seems to be more buying opportunities but I won’t be dipping my toes unless there’s a really compelling reasons and an overly negative sentiments. I believe most investors are also unsure of what’s going to happen as well. My biggest concern is the fear that US market will hit the bear market before we hit our bulls. That will also means we might be facing lacklustre performance for more than 10 years. Singapore market Singapore market has suffered a slight decline, mainly with some of the declines coming from Singtel and properties related shars. My Singapore portfolio is not a 100% value focus fund and it has unfortunately decline more than the index. As a result, I am of the idea that I will need to sell heavily before I embark on a value approach. It’s in a 15% cash situation as well, I think that is a comfortable ...
Read more

Note 1: Start of my journey towards financial independence

Image
Dear internet Today, I am officially recording my journey towards financial independence. I am 38 years old this year and I plan to achieve financial independence by the age of 55 years old. During my youth and young working life, I was heavily influenced by several of my seniors who had achieved some form of financial freedom at an age much earlier than their peer. As such, I wish to chart my own path, just like them. I currently live in a public housing, and work as a minion in a MNC. I believe that the route to financial independence or financial freedom revolves around a few key behaviour Spending less than you earn A disciplined process in investing   Being open minded   This blog will record my various trades, milestones of my networth, opinion on equities and politics and other matters regarding financial independence. This blog IS NOT , A showcase of my net worth,  A forum to share my thoughts on religion or politics  A blog for a...
Read more