The value of diversification

Discussion in 'Digital Currencies' started by mmm....shiney!, May 19, 2018.

  1. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    This may well be an interesting website to keep an eye on.

    Screen Shot 2019-06-17 at 7.52.23 am.png

    I'll nominate Digitalcoin. Trading volume of $3.38 in the last 24 hours, I think the development team gave up quite some time ago and a bunch of holders tried to get it going again. I sold my holdings (5800 coins or so) about 18 months ago luckily, before cryptsy went down. What a shit of piece!!

    Of course Auscoin should get a mention too.
     
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  2. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Mmmm....

    Wondering if my bearish sentiment call may have been a little premature?

    Any thoughts?
     
  3. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    In his latest tweet Isarael Folau has outlined God’s plan for HODLERS from the Book of Jonah:

    "From there Peter Schiff went up to Bethel. As he was walking along the road, some HODLERS came out of the town and jeered at him. “Get out of here old man!” they said. “Get out of here, you old, grey haired relic!”

    He turned around, looked at them and called down a curse of the Lord. Then two bears came out of the woods and mauled forty-two of the HODLERS.”

    Folau doesn’t make it clear whether the HODLERS were pillow-biters or not, or even if Yawheh drew a distinction between the two, but it is a timely warning that God can summon bears to leap out from the shadows of the market without warning to maul crypto bulls. Thankfully our God is a merciful God. I think they were saying the same thing about Danaerys - just before she melted 90% of King’s Landing. But clearly, in God's eyes, it's not nice to tease, and it's especially not nice to tease gold bulls. But at least for now the bears are not hanging around the crypto market. Israel will no doubt have something to say about whales too but that may well be for another time.

    On another note, it's time to inject a goal into this thread.

    I’ve become increasingly impressed with Bitcoin’s resilience in the market. Two years ago I was willing to write it off in the face of an onslaught of alternative currencies, but the market has had other ideas. As an example to show the strength of the coin, at the height of the crypto FOMO, if I had converted all of my alt-coin holdings into BTC instead of holding them, my portfolio would now be at about 61% of ATH in AUD value. Instead it’s at about 15% of the ATH. Still in the black, but that’s a mighty difference. I’d argue that LTC also has durability. So in the face of that, and as both coins are absent from my portfolio, my plan is to convert profits from individual holdings into BTC when the ratio of altcoin to BTC is favourable. I'm still going to keep the name of the portfolio as shiney!'s shitcoin portfolio however, just to keep @Bullion Baron amused. :D

    I traded 8.7 BNB for 0.0255 BTC about a week ago as I thought the BNB/BTC ratio was going to go lower. At the time 1 BNB was worth 0.0029031 BTC. As it turned out a couple of days later I could have got 320000 satoshis, but as @Skyrocket wouldn't lend me his crystal ball coz he was rationalising with aliens or something, I wasn't to know. I'll trade again if it gets to that 320000 level. The updated chart reflects that trade.

    As you can see from the chart, Bitcoin is now in the black returning a profit of 17% since the inception of Bullion Baron's Pissing Contest. The other portfolios are struggling, as the alt-coin market as a whole did not piggy back on Bitcoin's rises of the past weeks. Hopefully that will change in the coming months.

    Screen Shot 2019-07-08 at 1.16.29 pm.png
     
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  4. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    The way bitcoin is moving it doesn’t look like I’ll be trading any altcoins soon. :(
     
  5. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    I'll update the portfolio next week, needless to say Israel's bears have mauled us, God can be a vengeful bastard!. I'm also toying with the idea of rejinking it a second time in light of the continuing alt coin winter, a potential currency crisis in Europe and growing fears of the US slipping into a recession.

    I'll probably change the currency unit to AUD to better reflect changes in the foreign exchange rate. Other ideas I'm floating include cutting losses on some projects and incorporating a currency hedge into the portfolio via one of the USD stable coins, basically because BTC is considered to be a USD hedge in the same way gold is (which is one reason why I started trading profits for BTC), but in the event that the Euro/JPY etc burn and there is flight to the USD we may well see a rise in the value of the USD relative to gold (and BTC), so I'm looking at introducing a hedge into the portfolio. It'll reduce potential profits but may limit some of the blood loss in the event of a financial meltdown.

    Yep, next update may well see USDT in the Shitcoin Portfolio. :eek::D
     
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  6. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    I’m getting a little bit excited by the changes I’m going to make, got a couple of new products to trial
     
  7. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Screen Shot 2019-09-09 at 8.52.54 am.png
    And on another note, as I've alluded to in the last couple of posts I've made some changes both in the measure of performance and in the actual assets held in shiny!'s Shitcoin Portfolio.

    But firstly a quick look at the performance of the highlighted assets, and generally compared to the last report in July it's been a disappointment for altcoins as Ned Stark's long winter draws on. IOTA is down further and as are most of the assets in the Shitcoin Portfolio. BTC has held its own, as has THETA whilst the Crypto20 fund actually put on a rise likely due in part to a continuing falling AUD.

    I decided to change the measure from USD to AUD to better reflect the performance of the assets in our market. But more interestingly I've made some significant changes to shiny!'s Shitcoin Portfolio selling most of the underperforming assets at huge losses, taking profit where it was still available and introducing an AUD/USD hedge via an interest bearing crypto deposit.

    I took a profit of $183.40 in BNB which meant selling 5.6 BNB and exchanged it for roughly 0.008 BTC in line with my strategy of converting altcoin profits into BTC. I also sold all of the ADA, NEO and THETA in exchange for TUSD, a stablecoin whose value is pegged to the USD. I chose TUSD as opposed to USDT or one of the others out there as it's apparently audited and the reserves are held by a number of trust companies who have entered escrow agreements rather than held in a centralised fund as is the case with Tether (or not :p ).

    The rationale behind this is that I'm expecting the AUD to tank and I'm also expecting many other currencies to also tank, including the Euro and GDP. Not sure about the Yen. This is probably going to cause a flight to the USD and drive up its price. I want to protect what meagre assets I have whilst also profiting from this currency collapse but I don't want my USD just sitting and getting mouldy, I want a return, so I've invested them in an interest bearing fixed term deposit paying 10% per annum (simple interest) with crypto.com. In order to do that I had to buy more MCO tokens and stake them (agree to lock them up for a period of time), so I sold all of the portfolio's stake in OmiseGo and bought an extra 9.2 MCO which brings the total up to 51.5 MCO. I could also invest the BNB and BTC held in shiny!'s Shitcoin Portfoliothe but that just means more maths for me when reporting back to you guys so I couldn't be bothered. It also means that the assets are locked away for a period of time which may not be advantageous.

    So for now it's just the TUSD's interest earnings I'll add to the portfolio each month as well as any changes in the value of the assets in AUD. The take on all of this is that whilst it's not always a good idea to look into your "family roots", it's a good idea to actively manage portfolios including taking profit where you can rather than just letting them sit passively in a corner somewhere.

    Screen Shot 2019-09-09 at 8.42.25 am.png
     
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  8. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    What happened to bitcoin?
     
  9. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Been in a descending triangle formation for some time, broke downside. Maybe coz futures expire in the next couple of days. No idea really.
     
  10. willrocks

    willrocks Well-Known Member Silver Stacker

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    Not sure it was a textbook example of a descending triangle because there were higher lows. But it's all bit like reading tea leaves.

    I expected it to drop simply based on how many "influencers" saying it was going to break to the upside.
     
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  11. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Yeh, and once those stop-losses are triggered it’s like a waterfall
     
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  12. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    A big hello to all you Cobbler's Peg Pickers and Dirt Munching Vorants living on the fringe of mainstream society. Wow! Isn't shit stuffed? Holy Mother of Folau.

    If you're like me by now you would've been expecting Moons and Lambos - but alas, we're consigned to waking each morning, brewing a coffee and then making our way along with millions of others into the world in an increasingly vain attempt to enhance value in order to make our [email protected] lives a little more meaningful. And that's coming from an optimist! Shit, imagine if @JulieW was penning these posts???

    Still, it's better than tilling potatoes in a bog for the landlord.

    So, it's been 93 days since this little crypto spamlord changed tack in an attempt to reduce risk, and whilst shiny!'s Shitcoin Portfolio has suffered further falls it may well be that the change in strategy worked somesquat. It's down 55% since inception but only down about 6% since the last report, in thanks to a nice little rise in value of MCO (up 29%) and a modest return of about $11 (1.7%) from my investment in TUSD.

    MIOTA fell 14%, down about 91% on initial investment, THETA fell about 25% and is showing a loss of about 47% on initial investment, BNB fell 30%, BTC fell about 28% and Crypto20 is down about 17%.

    Draw your own conclusions from the data. Or alternatively send me $100 and I'll draw you some dick and balls. Not mine of course, that's privileged information. Or maybe a cat. But in the meantime here's the chart and here's to keeping the legacy of @Bullion Baron alive. Prost my friend!!

    Screen Shot 2019-12-09 at 1.44.33 pm.png
     
    Last edited: Dec 9, 2019
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  13. Silver260

    Silver260 Well-Known Member Silver Stacker

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    Yea, I resigned myself to a life of continued serfdom, some time ago....

    images (100).jpeg
     
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  14. dozerz

    dozerz Well-Known Member Silver Stacker

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    i wish to subscribe to your newsletter.
     
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  15. JohnnyBravo300

    JohnnyBravo300 Well-Known Member

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    I was waiting for $3k again to jump in. I might give it awhile.
     
  16. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    I think it's been longer than 3 months since my last update of Bullion Baron's Pissing Contest. How remiss of me. Whatever happened to Israel anyway? Oh that's right that was December's uproar.

    Since then we've had the fear of dying from coronavirus, or radiation from telecommunication towers causing babies to be born with vaginas between their legs of all things!!! I've seen a vagina and I don't think they're actually that bad. Or weapons that "they" are now employing to specifically target houses with firestorms so they can build rail corridors whilst leaving nests of koalas intact to drop on those poor people fleeing the devastation. Or fucking Muslims. Coz you know fkn Muslims will get up to shit when your redneck is turned. Same with lefties (probably that little bitch Greta behind it all anyway).

    I think the US has knocked off an Iranian general or two, the stockmarket has crashed and all life as we know it will perish because all the stockbrokers have hoarded the world's supply of face masks and Speedo goggles. I've also been reliably uninformed that NASA has been launching rockets with Dean Koontz novels into space for the past 20 years in order to rain literacy down on us. Or something like that. I dunno, I wasn't really listening.

    And in what's probably the most frightening news of all, apparently if you take too many Vitamin C tablets you'll just end up pissing it all out! I can't begin to imagine how painful it would be to pass multiple vitamin C tablets through the eye of your old fella. :eek: At least the babies born with vaginas between their legs won't have to worry about that.

    Yep, that's pretty much been the last 3 months on Silver Stackers. Thank god the crypto market is here to comfort us. Kind of like a modern day reincarnation of John F. Kennedy.

    IOTA. Is IOTA even a thing at the moment? Is the entire network still shut down? For those new to this forum it was IOTA that sowed the seeds for Bullion Baron's Pissing Contest when he challenged me to pick one crypto-currency and we'd follow both IOTA which was his choice coz it was going to be "THE INTERNET!" and my choice THETA and we'd see how each crypto progressed over the ensuing months. Well... IOTA is up 10% since I last reported, despite the fact that, well, the network doesn't obviously work. :confused: But it's 90% down in value since the inception of this contest, see the attached table.

    THETA or "pumpkins" as @Bullion Baron affectionately referred to it as is currently trading at 18c, which is about 20% down on its initial value. Bitcoin the King is currently return a profit!! Yay. 3.65% on initial investment most likely due to the falling AUD. Crypto20 the passive index fund that was @Bullion Baron's suggestion as your best chance for beating the market is currently trading at 81c which represents a return of -68% on investment. My shitcoin portfolio, a diversified portfolio which also includes a portion of TUSD invested at 10% per annum, is up about 10% on last month but still showing a loss of about 45% on initial investment. :(

    I'm anticipating that as the market comes to terms with @Skyrocket's opinion that Sydney is a shithole and that researchers identify that around 50% of the proportion of babies are in fact born with what is called a penis between their legs, a sausage like appendage that gives rise to those babies being referred to generally as "boys" then I'll be talking about something completely different in 3 months time. As well as cryptos.

    Screen Shot 2020-03-02 at 6.43.01 pm.png
     
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  17. JulieW

    JulieW Well-Known Member Silver Stacker

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    Best post ever Shiney. I finally understand your Sig.

    p.s. you missed "megxit" which, as we know, dwarfs all other matters of great concern.

    :p
     
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  18. Pirocco

    Pirocco Well-Known Member

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    Diversification is what a lone on a isle does.
    Specialisation is what trading communities do.
    Guess who lives in a cave and who lives in castles.
     
  19. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    If you were looking at economic behaviour and how value is best enhanced then you’d probably be correct.

    But this thread is not about that so you’re not correct. This thread is about finance and investment strategies.

    Kings and Queens in fairy tales?
     
  20. heartastack

    heartastack Well-Known Member Silver Stacker

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    Btc moving up already I’m impressed..
     

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