THEN
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.
NOW
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.
source:
www.buybitcoinworldwide.com/price
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...
LOOKING BACK
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….
Chop fingers and never again. Even for stock trading or investing
ReplyDeleteHuman nature. Once bitten twice shy. I know pple whose parents or relatives had failed marriage and hence they themselves never believe in marriage.
DeleteHigh-5 to you Rolf ;)
ReplyDeleteHi Kevin, Hi-5 for?
DeleteFor loving the unloved :D End of the day, even if it isn't for investment, getting our hands dirty and learning about new technology are just as important and/or exciting. I'm sure you have learnt a lot through the process of getting acquainted with Bitcoin. It was the same for myself :)
DeleteTotally agree with u Kev!
DeleteI love to break my comfort zone. And buying my first BTC is one of the reason.
I had read several articles that many BIG bitcoin losers actually have very in depth knowledge of bitcoin. Therefore, investing in crypto can in many ways similar to normal investment technique.
it’s all psychological... first must BELIEF second “when” @ what “price”? will it kill you or just a part of ur total portfolio in questions.
bla bla bla..
so i m buying more bcos it’s against the frenzy and against the majority public. :-)
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