Category: Got Money Got Honey

Embracing Blockchain or Crypto? Confused?

Yesterday’s post didn’t give you a hard-on? (You ought to read that first). Maybe today’s will.

“J’etais néophyte il y a un an, mais à present, je me suis pris de passion. Mais cela m’a pris un an. Faisons preuve de bcp de pédagogie avec nos concitoyens pour faire de la France la première place d’innovation Blockchain/cryptos en UE” @BrunoLeMaire ce matin. Il se passe qch!

— Alex Stachtchenko (@StachAlex) May 15, 2018

WTF am I looking at again GMGH?

You’re looking at the French Finance Minister admit that he was skeptical about crypto a year about, but after understanding it, he’s hot for it and wants to make France crypto friendly. Ain’t that interesting?

Over in Russia, Sberbank just did their first blockchain based commercial bond transaction – something that Singapore’s Project Ubin is trying to do in their Phase 3.

The infamous JP Morgan whose Jamie Dimon has shat on crypto publicly, now has a platform that uses blockchain technology for securities transactions.

Our dear friends in Europe who have recently gone crypto crazy, Malta is implementing blockchain technology to improve its public transport system.

So that’s the good news so far.

What’s the bad news?

Blockchain is NOT cryptocurrency.

What’s the difference? I made a post about the terminologies here. You should read it.

Governments and companies and banks embracing BLOCKCHAIN technology are understanding the importance of data integrity and making them tamperproof.

However, these improved DATABASES are still vulnerable because they are not distributed.

Hence, the other “corporate-fied” term, which is distributed ledger technology (DLT) – having multiple databases so you don’t get screwed by any single database mulfunctioning.

To be honest, it’s not a bad thing for blockchain technology to be embraced. A lot of documentation and digital trails can and should be secured using blockchain technology. But by no means does this mean that the price of Bitcoin or other cryptos will go up.

Eventually though, some people, corporations and perhaps even governments will see and understand the importantance of not only blockchain technology (immutable, tamper-proof data), distributed ledger technology (which has redundancy and resistance to single point of failure), but that it is also public (free from top down manipulation and accessible to all).

Until that happens, don’t get too excited when you hear governments and companies embracing blockchain technology.

I purposely did this post back to back with yesterday’s post so that you can compare and contrast the different news.

On the surface, both seems bullish for crypto, doesn’t it?

After my post today, maybe you’d understand why only yesterday’s news is bullish, and today’s news is just sort of interesting.

Welcome, Institutional Bagholders

GMGH, wtf am I looking at?You’re looking at the official statement by Nomura Bank in Japan to have a crypto custody solution for institutional investors.Which comes after Coinbase announcing their own suite of institutional products.Which comes after t…

Follow Up on Argentina’s 100 Year Bonds

Remember when Argentina sold $2.75b of 100 year bonds?I do.Because I wrote about how stupid of an investment that would be.If we aren’t at the cusp of madness yet, I am more than willing to be entertained to see what will top this insanity.You don’t ne…

I might have figured out why Buffet hates Bitcoin

Title: The Banks = The Rats
Medium: Rat poison and acrylic on foam core
Location: Berkshire Hathaway NYC office#cryptoart #bitcoinart pic.twitter.com/ZyMOG4HedY

— cryptograffiti (@cryptograffiti) May 13, 2018

If you follow the QR code by this brilliant artist, it does NOT lead you to a donation address.

It leads you to this image:

Which shows you that BRK is owning $66.3 billion worth of bank stocks.

I wonder why Buffet hates Bitcoin?

Damn, I just can’t figure out. The reason just escapes me.

For someone like me with subpar IQ and a degen mindset, it’s probably beyond me the genius thinking that goes on in the mind of a legend like Buffet.

Oh, by the way, did you know you can transfer Bitcoin to anyone, anywhere in the world, anytime, pseudo-anonymously with no need for a bank account, verification, permission or approval?

For an average transaction, it costs $0.60 if you need it sent within 10 minutes.
It costs $0.03 if you don’t mind that it takes a day.

This fella sent $16,000,000 USD worth of BTC just today.
It took 1 minute and 14 seconds and it costed him $2.95 USD of transaction fees.
Yes, his transaction fee charge was 0.0000184%.
He paid $0.18 for every $1,000,000 that he transferred.

Wait, what’s the point of these statistics again?

I forgot.

Man, I just can figure out why Buffet doesn’t like Bitcoin. You think he has some kind of agenda? It’s almost as if the very premise of Bitcoin itself undermines banks in multitudes of ways, and that would be negative for his investments.

By golly, do you think that’s the reason?

No, it can’t be. Good ol’ uncle Warren is so nice, he wouldn’t be devious just to make money!

Buffet, Munger and Gates all Hate Bitcoin

Buffet on Bitcoin, “probably rat poison squared.”Munger on Bitcoin, “Disgusting” “Stupid” “Immoral” “Turds”.Gates on Bitcoin, “Pure greater fool theory type of investment” and “would short it”.Warren worshipers, now is the best time to show them how mu…

Massive Positively Skewed Cryto Risk-Rewards

Recently listed #ICO‘s have been performing well. Go to our WhiteList page and never miss the next gem! https://t.co/YUBuUT7eoN pic.twitter.com/Y2SFY8zpmP

— ICO Drops (@ICODrops) May 2, 2018

I’m not saying to do crypto, I’m just pointing out something that seems rather obvious to me.

In all investments, unless there is some magical explicit guarantee, the maximum loss is 100%.

Generally speaking, the “lower risk” an investment has, the “lower returns” it would give. Ie. a bond that will be redeemed at 100 face value won’t trade too low below this number, but returns won’t be high either.

Well, assuming of course if the borrower can pay back the bond. Bonds are rather binary in nature, imo. If they can be paid back, they will stick around face value. And if not, they are pretty worthless. You don’t get the smooth downward trend that you see in equities.

Anyway, I don’t want to explain too much. This isn’t rocket science. The risk/reward relationship holds true because it makes sense.

The thing about crypto, which many rational and logical people have still failed to realize and understand is that crypto’s risk/reward is extremely positively skewed.

ICOs are pumping out sick returns like the tweet above. And guess what? Those aren’t even that good of a return. For 2-4 months of locking up funds in an ICO and waiting for release, most people were expecting a lot more profit.

Average ROI in ETH is x2.6, or 160% profit.
ATH ROI in ETH is x3.4 or 240% profit.

Worst two ICOs? -40% and -20%.
Odds of doing a losing ICO? 2 out of 11, or 18%. Or rehashed, 82% of making money.

The strategy that a lot of people in the crypto market has already realized and been employing is that splitting your capital and dropping a bit into several ICOs can supercharge your returns because the losses from the duds would be totally covered by the profits of the studs. Couple those ICO returns (in ETH) to the $ price increase of ETH over the period and your returns could compound to disgusting levels of profits.

I did one of these ICOs. It’s in the top half of this page.

But ICOs are risky. And lots of ICOs are extremely stupid. I don’t take part in most ICOs because I find lots of the ideas terrible. If I’m putting money into a stupid idea but I’m still expecting to profit, I’m gambling, not investing.

I repeat.

ICOs are very risky (in terms of fraud, scams, hacks, technological noobness, etc).
ICOs have mostly stupid ideas.

But hey if you know what you’re doing? Ka-ching, ka-ching baby.

Japan Loves their ETFs

The Bank of Japan, as of last October, owned 74% of the total volume of the ETFs trading on the Nikkei. Now that number is up to 80%

Printing money to buy assets = monetary fraud… pic.twitter.com/U2I1FQOMxx

— Gold Telegraph (@GoldTelegraph_) April 28, 2018

What happens with the BOJ owns 99% of all ETFs?

Ah, who cares?

All governments should be printing more money to buy up all financial assets!

Surely this makes a lot of sense somehow!

1000000000% stock returns for everybody!

I can’t believe no one else has thought of this. People are so stupid.

I’m a goddamn genius, I tell ya.

Crypto Portfolio Apr 2018 Report Card

From 1st Apr to 31th Apr, my crypto portfolio went up 48.8%.To be honest, +48% in Apr is rather weak. Most other players in the space would’ve probably seen much larger gains during this same period. But then again, I did outperform during the crash, s…

What I Hate About Crypto

Don’t you just hate it when crypto just keeps going up and up and up and you can’t get a good entry for a new position?And you just have to end up hodling your fiat?Yeah, me too.It’s tragic.