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 is a bit early but I've landed myself a stinking wage earner's fkn job in a couple of weeks at pauper's rates naturally and as I've got a few sherbies under the belt and some time I thought what the heck? And THETA has done well so why not update old @Bullion Baron's Pissing Contest a couple of weeks early?

    The big mover over the past 3 months (apart from pumpkins aka THETA) has been three letters. M.M.T.

    Here's another three letters: W.O.W! And 6 more: F>U>C>K>M>E!

    I wasn't expecting the Central Banks and national governments to move so fast. I think the last time we discussed rate cuts and fiscal stimulus in another thread I made mention that maybe we'd see some moves by September 2020. But these past 3 months have seen rate cuts, indebtedness and fiscal stimulation not seen on a scale ever before in history. The RBA quickly moved to the 0.25% effective lower bound cash rate, the government announced a raft of support packages and even the retail banks and energy companies dragged Santa out of the closet and bestowed gifts upon their anxious customers.

    And in moves no cynical anti-government advocate would ever have anticipated, the State effectively gave workers affected by the coronavirus (the real one, not the 5G transmitted one) a 6 month paid holiday at home. W.O.W! F>U>C>K>M>E!

    Now this is why there was a rush on toilet paper people. Workers, who for years had been holding off having a dump until they could get to work and wipe their grimy socialist butts with the boss's hard-earned earned rolls of Cottonelle were now forced to stay at home! And don't think about going to caravan parks, pubs, cafes or national parks to use their facilities. Nope. We as a society were forced to take responsibility for our own derriere hygiene. Multiply that by the number of little kids not being able to walk out of class every 12 minutes coz they have to go to the toilet and you don't have to be an Einstein to see that the market moved quickly, recognising the threat and that the old supply/demand curve in toilet tissue was put under a severe degree of stress. It wasn't irrational fear. Merely homo economicus engaging in yet another evolutionary leap.

    So back to the point of this thread. We'll attend to each asset in order:

    IOTA: down a further 6% since last time. @Bullion Baron's initial investment of $4000 is now worth $372. That's a 90.7% loss on investment. And it was going to be "The World" apparently. Sad.
    THETA: up 61% since the last time I reported. This means that an initial investment of $4000 in those "pumpkins" is now worth just over $5117. That's a capital gain of 28% which is not too bad considering the state of the crypto market since @Bullion Baron suggested starting this competition.
    BITCOIN: up 10%. BTC is showing a gain of $571.50 or about 14%.
    CRYPTO20: AKA "a sleeping pill" is down. Who would've thought? Does anyone even talk about this in crypto circles? It's showing a loss of about $2800 or about 71%
    SHITCOINS: damn you BNB!! Still down, about the same at a loss of 46% which means my initial investment of $4000 is only worth about $2100. It's a good thing I hold gold I tells ya.


    Screen Shot 2020-05-16 at 4.49.38 pm.png

    And I'll be using the boss's toilet paper too!
     
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  2. JulieW

    JulieW Well-Known Member Silver Stacker

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    Bravo!

    I look forward to further reports from the life of the indentured worker.
     
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  3. mmm....shiney!

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

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    Rollin', rollin', rollin',
    Keep dem money printers rollin',
    Got to keep dem rollin',
    Worldwide!!

    Don't try to understand 'em
    Just print and lend and spend 'em
    Soon we'll be living high and wide.
    My heart's calculatin'
    Assets be inflatin'
    Be inflatin' by the end of this ride.

    Move 'em on, head 'em up
    Head 'em up, move 'em on
    Move 'em on, head 'em up
    Worldwide!

    Print 'em out, buy 'em in
    Buy 'em in, lend 'em out
    Lend 'em out, rake 'em in
    Worldwide!

    H'yah! H'yah!


    On a personal note I liquidated all my THETA assets a long time ago. But I bought CRO so it wasn't all that bad as both currencies have appreciated over 300% in the last 12 months. Rawhide!! Just should've dumped my BNB and TUSD for CRO and held THETA instead. Oh well, H'yah!!

    So what's happened since May 2020? Well firstly MCO no longer exists, which means I have to adjust shiney!'s Shitcoin Portfolio which has given me a headache doing but it had to be done. H'yah! The rate at the time was 1 MCO for 27.6493 CRO + 20% bonus if swapped before Sept 1, so that's what we did which meant we received about 1708.7 CRO. Furthermore, at some time in the past the interest rate for holding TUSD on the Nexo platform went from 10% to 8%, not sure when so I'll assume it happened the day after my last report. And the AUD/USD exchange rate has done us no favours either.

    Results then are:

    IOTA: up 48% ROI = -86.2%
    THETA: up 124% ROI 186.75%
    BTC: up 5% ROI 20.03%
    SHITCOINS: up 4% ROI -44.26%
    CRYPTO20: up 2.5% -64.24%

    Screen Shot 2020-09-03 at 8.12.53 am.png

    Lol, I shoulda kept THETA in the shitcoin Portfolio :p H'yah!



    ;)
     
  4. mmm....shiney!

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

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    Damn!! Wished I'd held on to my THETA lol. Currently $2.78 that would've been a 10 bagger, 1100% profit. The CHN of the crypto world. Not bad for a token that someone who shall remain nameless termed "pumpkins". :p

    IOTA still down 87% mind you. What would you call them then? Turnips? :rolleyes:

    Screen Shot 2021-01-04 at 4.40.02 pm.png

    For any one interested I sold my stable coins a while back as my USD/AUD play wasn't working out and parked the proceeds in CRO and have deposited them in a mining pool. The amount of CRO I now own personally only makes up about 10% of my portfolio though (it was as high as 50% in the past 12 months but I've gone off it) coz I got rid of most of them late last year. I also sold all of my BNB for BTC last week so the shitcoin portfolio really doesn't resemble my own holdings any longer.

    If any one is interested in the mining pool send me a PM and I'll send you the link. The returns have been from 10% - 45%+ on an annualised basis. I don't know how long I'll keep doing that, will see how future returns go, they have been declining since the inception of the mining pool - surprise surprise. There's plenty of other options as far as passive income goes.
     
  5. hawkeye1

    hawkeye1 New Member

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    Interesting thread. I don't really like the idea of diversification myself in crypto as my belief is, and has always been, that 99% of coins will eventually go to 0 and so even if they do go up multiples they are still too risky for my personal strategy. I proved myself useless at trading a couple of years ago, and I don't enjoy the stress of it, and so now am just going for the long-term hold strategy.

    My theory has always been that the market will coalesce into 2 or 3 big winners at the most when it eventually matures. And at this point in time, it is pretty clear that BTC is going to be one of them and ETH is also reasonably likely. So my strategy is just DCA in, with a large percentage of BTC and a smaller percentage of ETH and ride it out for however long it takes. Which is what I have been doing since mid-2017. And don't buy in crazy parabolic moves like late 2017-early 2018, which I fortunately managed not to do.

    Wasn't easy riding out the bear market though, and when price crashed last year I had been too traumatized to load up at the low price, even though I did still buy some.
     
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  6. nicotineandcaffeine

    nicotineandcaffeine Active Member

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    Probably wise. If ETH can actually do something besides money printing that earns a real dollar then DOT and LINK should have value too for contact data. They are correlated though so little value in diversification. XLM might have value since it's going down a completely different currency path and McCaleb has a billion dollar warchest after outsmarting everyone at Ripple Labs.

    I remember the potato fund from 2017. The fund was about diversifiing into alt coins. The fund is probably 80 to 90% down in today's money.
     
  7. nicotineandcaffeine

    nicotineandcaffeine Active Member

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    Am I reading this right?

    Your portfolio 243%
    Bitcoin for the same time 234% (not including lower fees and taxes)
     
  8. mmm....shiney!

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

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    ?

    My shitcoin portfolio is down 18%.
     
    Last edited: Jan 7, 2021

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