Towards the end of 2017 early 2018, the most talked about investment topic was the buying of crypto-currency. The news of Bitcoin is everywhere. Even aunties and uncles talked about it. My wife who knew nothing about investment told me about Bitcoin (BTC) and how her colleagues and friends mentioned to her.
Another friend of mine back then, ask if I should start looking into investing in the Crypto mining business as his uncle is quitting his job and poured in close to S$200k into the Crypto mining business.
I also have clients from abroad telling me how excited they are because they were into ICO (Initial Coin Offerings), and were destined to make big bucks. They chose to put aside their core business to focus on ICO. During our conversation, I knew that they do not really understand how crypto-trade works, as their only interest is to make money.
Rarely you hear any aunties and uncles talk on the streets nowadays about crypto. My friend told me this year that his uncle lost all the monies he invested in the mining machines and are no longer in the business. I also met with my overseas clients this year and asked if they earn big bucks from Crypto, the topic was cut short with an awkward grin.
So the frenzy about BTC died down just as the price was sent tumbling down from the high of US$19K in late Dec 2017, to US$3-4K per BTC now. ~500% down.
LOVING THE UNLOVED
So in my opinion, Crypto-investment has become the unloved, un-talk-about, or even possibly under-valued? Ok, forgive my opinion about under-valued. I am by no means a Crypto guru, even if I did my own research about Crypto and blockchain before.
But all I know is I can afford small portion of my portfolio to "experience" BTC ownerships. So I went through all the troubles to find out how to own Bitcoin having already understand it, created my CoinHako account, did few verifications and managed to purchase couple of BTC unit.
And yes, I am a proud owner of BTC now when no one is talking about it!
Anyway, I am a believer that the mainstream is normally almost always wrong over the long term. I wrote about that in this article. Refer here.
To support my point, I was talking with my child’s classmate’s parent recently. He was interested in investment and I mentioned how about buying BTC, gold and silver etc? The BTC topic raised a few eyebrows as he told me he was burned from it and will never touch it again. I highlighted that now BTC is unloved and perhaps good time to buy? Moreover, price dropped a lot. He shook his head and the topic goes to gold and silver...
On 14 Dec 2017 when BTC is at its peak value, I cut and paste a joke of Bitcoin onto my Blog titled “Monkey Business”. Refer here.
Towards the end of the joke states: “It will make a lot of people bankrupt and a few people filthy rich in this monkey business.”
And indeed, all I know is my friend’s uncle is sort of bankrupt with his life-savings wiped out. And perhaps many more out there whom I do not know. Undeniably, there will be some of those out there who will eventually get rich via investment in Crypto, but they still remain the minority.
Everyone always think that they are the minority who will win, but most of the time, their actions already tell us they are not.
So the joke has some truth in it and it does not mean Monkey business is no good. End of the day, you must understand the Monkey business and know how and when to use the value of the Monkey.
For e.g if the market crash, one sort of company I will invest in is Bitcoin technology company.
Don’t ask me why I don’t invest now then….