May 19, · Hi Mr. Stingy. Thanks for your sharing, I really enjoyed reading your article. I always have a few concerns about the development of Bitcoin and I would be happy to know your opinion regarding these issues. My concern is more inclined towards the development of Bitcoin as a currency instead of its return as an investment. Bitcoin mr stingy is decentralized. Bitcoin mr stingy can be utilized to bear for things electronically, if both parties square measure willing. In that judgment it’s the likes of conventional dollars, euros or long, which stool also be traded digitally using ledgers owned by focused banks. mr-stingy getting the most out of life Start; Best of; Categories. Relationships; Time; Money; Career; Cool Stuff. Bitcoin My Greatest Investment Loss Ever & the Lessons I Learned Published September 16, September 16, by mr-stingy in Money. 8 Comments. How I Invest My Own Money Published July 14, July 14, by mr-stingy in.
Mr stingy bitcoinWhy Invest in Bitcoin? [ Edition] | mr-stingy
As of 18 November , it has added 3. For context: before the financial crisis of , the Federal Reserve balance sheet had never even reached 1 trillion USD. Yes gold. The reason? Bitcoin looks similar to digital gold. But for those of us living in developing countries, when was the last time your currency gained against the USD? Bitcoin is currently valued at Bitcoin has already reached all-time highs in seven developing countries measured in local currency: Brazil, Turkey, Argentina, Sudan, Angola, Venezuela and Zambia.
I really hope our economies will be strong and our people will prosper. Nobel Prize winner Harry Markowitz popularized the concept of diversification to manage risk. Key to diversification is buying assets which have low correlations with each other.
Meaning they behave differently when it comes to returns. During recessions when the stock market goes down, your bonds are supposed to maintain performance and protect you. In recent years however, people are increasingly questioning their allocations to bonds. Some bonds even have negative interest rates. But in this non-traditional world of negative interest rates, people have started questioning if they should tweak their traditional portfolios.
For some simulation results, read on in the next section. Remember that oh-so-sexy feature of low correlation for diversification? Bitcoin is king of that right now.
This research paper shows Bitcoin having low correlation with basically everything including the US stock market, bonds, gold, oil, and even Tesla over the past 10 years. Ready for some numbers? Cool story bro, but not very useful. Would it still be worth it?
Some fascinating results:. Interestingly, even under such an adverse scenario, a quarterly rebalanced allocation to Bitcoin would have delivered a slight, but nonetheless positive, impact on both the cumulative and risk-adjusted returns of a Traditional Portfolio. For example, a 2. But what if your timing had been better? If you have time, please read the entire paper for other scenarios, but otherwise, here are highlights:. The Sharpe Ratio measures the performance of an asset against its volatility.
Higher numbers are better — meaning you get better performance for less risk. Perhaps the biggest struggle many investing pros have with Bitcoin is fundamentals.
So while some might say Bitcoin is a commodity, when was the last time you heard of someone sending virtual wheat to pay someone on the other side of the world? Hence, if you try to use a valuation method for something else e. What valuation method should we use for Bitcoin then? Anything scarce with increasing demand will increase in value.
If some of the above metrics remind you of how tech companies justify crazy valuations e. And then everyone will update their books to show the same information. This is what would happen at the day-end meeting:.
The cool thing about this system? So in case anyone loses their special book, someone steals Stones, or maybe even a bad villager tries to create fake Stones — all the villagers need to do is to go to the meeting and check their books together. As you can probably tell, Stones are an analogy for Bitcoin. Just like in our happy village, all Bitcoin transactions are first verified by a bunch of people together.
The verified transactions are then updated into the blockchain, so we know how much Bitcoin everyone rightfully has at a certain point in time. But the really amazing thing is that instead of limiting it to a small village where meetings happen once a day and everyone trusts each other , we can use technology to expand this system to anyone connected on the Internet.
But enough about the geeky stuff. Instead, I put money into it because:. So I started small — with an intention to learn. I thought it was freaking expensive. Especially considering how it used to be in the USD range for most of It was uncomfortable.
Would I lose all my money and regret it in one year? I reminded myself this was money I could afford to lose — but the learning might be priceless. I made sure the bitcoin transaction went through, the BTC was safely in my wallet — then I shut down the computer.
Over the next few days, I would occasionally look at the price of Bitcoin, and play around with my bitcoin wallet. This was back in November , when the infamous Mt. But Quarter 1 was when it really started to get mass attention. I was getting hooked. At the same time, a young cryptocurrency called Ether was taking the world by storm.
I felt I needed to get in too. At this point, I had a decision to make. I had it for less than a year, but Bitcoin was already the best investment I had ever made with my money. Should I sell? Like most fans, I started reading everything I could about Bitcoin on the Internet.
And I also read how skeptics said Bitcoin was worthless and this was all a huge bubble. There are a lot of extremely smart people predicting the future of Bitcoin, but ultimately I realized that no one really knows. Stock markets have existed for more than years, but can anyone really predict stocks accurately? And Bitcoin is just 9 years old. I made a promise to myself: I would only put in money that I was willing to lose. I would hold.
How do I deal with fear, uncertainty and doubt? I really like several interesting projects like decentralized computing Golem , decentralized storage SiaCoin and Blockchain-as-a-Service Stratis. Naturally, I bought into NEO at its all-time high, and then it crashed.
So win some, lose some. You can write something that is very true, and still adjust it to become as sensationalized or as boring as you want. But the latest amount I bought early Nov is obviously not.
Why am I telling you this? And a lot of these publications will try to steal your attention in sometimes irresponsible ways.
I can already see it happening. No my friends, stay away from the dark side. You can even change from one cryptocurrency to another e. Bitcoin to Ether using Exchanges. Use my referral code here. You can buy small quantities of it down to 0. Use this money as a learning opportunity. Plenty of things to learn such as:. Yes, you could read up on all the above even before you get into Bitcoin. And will big banks start to embrace cryptos, or end up like what Amazon did to bookstores?
But I know the world is changing; a lot faster than most of us ever expected. Buying Bitcoin in Malaysia? Use my Luno referral code here. Thank you for your interest. Check your inbox or spam folder now to confirm your subscription. Good read! I was reading your other article and came across this post. I also want to share with you my version of cryptocurrency story haha. I personally invested in cryptocurrency back in April , it was my first investment because for some reason I find open a CDS account is damn troublesome so I go with crypto investment and I put in around SGD I just started my first job, so not much of capital as my initial capital.
The return is crazy like I never knew making money is so damn easy easily x3 — x I promise myself the next bull run I will cash out all my investment and put it in a safer investment like ETF, stocks, bonds.