Cryptocurrencies

[Xerxes]

5 hours ago, Milu said:

For the other investors who hold crypto in the forum, what is the current percent of your net worth you have in the asset class? For me I put about 2.5% of my net worth into bitcoin and ethereum back in Mid-2020, and have just held ever since. As of today this is now close to 17% and is my largest position.

As of today 6.5%, and the balance 93% is all long stocks.
 

No direct exposure to bonds. 

[Milu]

18 minutes ago, rkbabang said:

As of right now:

 

BTC: 17.8%

ETH:  9.7%

MSTR: 6.3% 

 

33.8% of net worth if considering MSTR as a crypto investment (which I do). 

27.5% if only counting self custody crypto.

 

 

 

 

That's a decent chunk alright, and yes would definitely count MSTR as part of the crypto bucket. My Current high level asset class percentages are;

Stocks - 52%

Cash* - 31%

Crypto - 17%

 

*Mainly USD and EUR short term bonds/bills

 

[Paarslaars]

Also 17%, roughly even between BTC and MSTR.

 

Edit: % of my liquid assets, not including RE.

Edited March 11 by Paarslaars

[jfan]

4.4% at cost

8.1% at mark-to-market

13.7% cash

[james22]

3 hours ago, Paarslaars said:

% of my liquid assets, not including RE.

 

Likewise.

 

And my 20%+ all in my Roth, so tax-adjusted more like 25%+.

[rkbabang]

3 hours ago, rkbabang said:

As of right now:

 

BTC: 17.8%

ETH:  9.7%

MSTR: 6.3% 

 

33.8% of net worth if considering MSTR as a crypto investment (which I do). 

27.5% if only counting self custody crypto.

 

 

 

 

That is 46.1% not counting real estate.

[Xerxes]

Love her accent

 

 

[Dave86ch]

On 3/11/2024 at 11:18 AM, Milu said:

For the other investors who hold crypto in the forum, what is the current percent of your net worth you have in the asset class? For me I put about 2.5% of my net worth into bitcoin and ethereum back in Mid-2020, and have just held ever since. As of today this is now close to 17% and is my largest position.

 

20%

[ValueArb]

Some interesting/funny crypto observations by Matt Levine in todays column. First:

 

Quote

Here are some statistics from Bloomberg’s Olga Kharif:

To pass the chartered financial analyst exams and put the “CFA” letters on your résumé, at least 900 hours of study are recommended. Hitting the books for 300 to 400 hours is advised for the certified public accountant exam, which is usually taken by prospective CPAs who have completed an undergraduate degree in the subject.

However, to become a “Certified Cryptocurrency Expert,” or CCE, all you need is $229 and time for 11 hours of online coursework offered by Blockchain Council. If that’s too much of a time commitment, you can receive a “Cryptocurrency and Blockchain Certificate” elsewhere by taking just four hours of coursework, passing a 20-question test and shelling out $795.

Well. Sure. Look, I myself have spent at least 11 hours online learning about crypto, and I do not want to be too skeptical about crypto education. But these numbers strike me as reasonable. Of course the CFA program should be harder than the crypto program. One model that you could have for crypto is that it is finance without the content.

 

[ValueArb]

Quote

Bloomberg’s Muyao Shen reported last week:

The memecoin frenzy in the digital-asset market shows no signs of stopping, with trading volumes now at levels last seen just before the burst of the last crypto bubble more than two years ago.

Considered as some of the most speculative and volatile cryptocurrencies, memecoins such as Dogwifhat and Pepe are far outstripping the gains registered by market bellwether Bitcoin that has dominated the headlines. Trading volume for the top memecoins, which often trade for a fraction of a cent, reached nearly $80 billion in the past week, according to data compiled by blockchain data firm Kaiko. That’s the highest since October 2021. …

Memecoins have been a long-existing phenomenon in crypto, as small investors and promoters see the microscopic prices of memecoins as an opportunity to quick post huge returns despite the lack of traditional fundamentals. ...

A group of dogwifhat token holders announced last week a public fundraising campaign to put the dogwifhat meme on the Las Vegas Sphere. The group has already reached its target goal of $650,000 in the USDC stablecoin, based on the transaction history of the digital wallet for the fundraise. But it’s unclear whether and when the fund will be used to promote the meme in Las Vegas.

What are dogwifhat’s fundamentals? Well:

1. Its logo is a dog, with a hat.
2. If people kick in enough money, maybe they can put a picture of the dog with the hat on the Las Vegas Sphere, which might encourage more people to kick in more money.

 

[ValueArb]

Quote

What does the multiple-choice exam question about this look like? Or today we got the story of Slerf:

A new Solana-based memecoin, Slerf, has faced significant challenges after the project’s developer accidentally burnt a major portion of the token supply — effectively losing $10 million, or the entirety, of presale participants’ money.

"Guys I f—ed up," the project's official X account wrote. "I burned the LP and the tokens that were set aside for the airdrop. Mint authority is already revoked so I can not mint them. There is nothing I can do to fix this. I am so f—ing sorry."

The Slerf team later went to an X Spaces to elaborate further on the situation. "I'm sick to my stomach," team member Slorg said in a Space on X. "I'm literally about to throw up."

"I'm lost for words," they added. "I don't know what to do."

Poor Slorg. Basically the way crypto works is that a guy named Slorg makes up a token named Slerf, which is distinguished from other tokens by having a cartoon sloth logo. You send $10 million of Solana crypto tokens to Slorg, and he makes a note to himself that he owes you some Slerfs. Then he accidentally flushes that note down the toilet and, due to the irreversible nature of the blockchain, you get no Slerfs and your money is permanently gone, though Slorg is very sorry. 

If this were a company, and Slerf was a stock, this would all be bad: It is bad for a company to lose all of the money it raises in a stock offering. (Also, though, it would probably be reversible. If a company just lost its list of shareholders, it could probably, like, go back through its emails and reconstruct the list.)

But Slerf is not a company or a stock: It is a crypto token, so absolutely nothing matters. Except that this is all sort of funny, and attention-grabbing, so of course Slerf went up. Arnold: “This mistake was very good for attention, and attention is the true value of any memecoin. So the obvious thing happened and the new tokens that were released shot up around 5,000%.” You could spend another 10 hours and 55 minutes pondering this but I do not recommend it.

 

 

[rkbabang]

Yes, 99.99% of crypto really gives the other 0.01% a bad name.

 

I wouldn't recommend putting real money into a dog with a hat coin.

 

 

[wachtwoord]

On 3/18/2024 at 9:58 PM, rkbabang said:

Yes, 99.99% of crypto really gives the other 0.01% a bad name.

 

I wouldn't recommend putting real money into a dog with a hat coin.

 

 

 

And this gets shared on one of the best public investment forums. Shows how early it really is (maybe not measured in time, but measured in saturation of understanding it's really low).

[Luke]

 

https://twitter.com/hkuppy/status/1770495938676588625

 

[ValueArb]

5 minutes ago, Luca said:

 

https://twitter.com/hkuppy/status/1770495938676588625

 

 

I do enjoy a good butt token, but not one with an avowedly racist name.

 

Instead I would have chosen adulph hidler, it seems like it is destined to go heil-er.

[Luke]

1 minute ago, ValueArb said:

I do enjoy a good butt token, but not one with an avowedly racist name.

 

Instead I would have chosen adulph hidler, it seems like it is destined to go heil-er.

If I compare Adulph hidler Coin to the n**** butt token, it looks quite undervalued honestly 

[james22]

LOL

 

 

https://davenadig.substack.com/p/bitcoin-endgames-and-the-new-hyperagents

[TwoCitiesCapital]

18 minutes ago, james22 said:

LOL

 

 

https://davenadig.substack.com/p/bitcoin-endgames-and-the-new-hyperagents

 

Butthurt much?

 

I mean, I agree to an extent. Me buying Bitcoin and holding it is nowhere near the achievement of Carnegie, JP Morgan, Rockerfeller, etc. 

 

But just like one could simply get rich but buying Amazon stock and "white knuckling it" from 2002 onward, I don't see why BTC is any different.

 

We saw the opportunity. We capitalized on it. We yelled its sermons of hard money  and fiscal responsibility from the mountaintops. And we waited years to be proven right while few listened. I don't see any issues with being rewarded for that foresight, patience, ridicule, and risk undertaken. 

[james22]

But the governments who abuse the fiat monetary system haven't built shit. They've demonstrated nothing. Their only claim to power is printing money to buy votes.

 

And if they trigger a hard money backlash, who better to replace them than those who correctly predicted it?

 

(And of those, it'll be those who've also built shit that rule, not those who just bought into bitcoin for a lambo.)

[Dave86ch]

7 hours ago, james22 said:

But the governments who abuse the fiat monetary system haven't built shit. They've demonstrated nothing. Their only claim to power is printing money to buy votes.

 

And if they trigger a hard money backlash, who better to replace them than those who correctly predicted it?

 

(And of those, it'll be those who've also built shit that rule, not those who just bought into bitcoin for a lambo.)

Buying and, above all, "holding" Bitcoin is not just an IQ test for individuals but also for countries. It represents a wealth transfer, as has occurred many times in history, usually from the old aristocrats to the new, technologically savvy aristocrats.

Moreover, it requires a good dose of courage to invest a significant amount of personal wealth.

Edited March 21 by Dave86ch

[james22]

5 hours ago, Dave86ch said:

Buying and, above all, "holding" Bitcoin is not just an IQ test for individuals but also for countries.

 

To be fair, most don't bother to study it because they've been told it's a Ponzi by people who should know better.

 

When you've Buffet/Munger on one side of the argument and Sam Bankman-Fried the other, you can believe you know all you need to.

[Milu]

2 hours ago, james22 said:

 

To be fair, most don't bother to study it because they've been told it's a Ponzi by people who should know better.

 

When you've Buffet/Munger on one side of the argument and Sam Bankman-Fried the other, you can believe you know all you need to.

Yes I was in this boat until 2020. I'd been hearing constantly from a good friend of mine since 2012 about how big bitcoin was going to be and how it was going to change the world. Thought he was talking rubbish and kept pushing back telling him it was a scam. I did hold some gold at the time so I did have some belief in the hard money concepts. I eventually saw sense on April 2020 and decided to take the leap. Have been a believer ever since.

 

Buffett and Munger are still my heroes and are right about the majority of things. They can of course occasionally be wrong and I feel bitcoin is one of those areas. It's such a unique thing that I wouldn't expect them to understand it anyway.

[wachtwoord]

On 3/21/2024 at 3:41 PM, james22 said:

 

To be fair, most don't bother to study it because they've been told it's a Ponzi by people who should know better.

 

When you've Buffet/Munger on one side of the argument and Sam Bankman-Fried the other, you can believe you know all you need to.

 

1. Bankman-Fried isnt on the other side. He was a scammer peddling scamcoins, NOT Bitcoin.

 

2. If you base your point of view in life on who says something rather than what they say you fully deserve any and all consequences/outcomes.

[KCLarkin]

On 3/21/2024 at 10:41 AM, james22 said:

 

To be fair, most don't bother to study it because they've been told it's a Ponzi by people who should know better.

 

When you've Buffet/Munger on one side of the argument and Sam Bankman-Fried the other, you can believe you know all you need to.

 

My favourite thing about doctors: the diagnosis will often just be a description of your symptoms... in Latin. Patient: Doc, my ass is itchy. Doc: You have pruritis ani. Patient: OMG, is it fatal?

 

I feel the same about crypto enthusiasts. They throw around a bunch of jargon to make it sound sophisticated. It is perhaps the simplest financial asset in history. Everything important about bitcoin could fit on a postcard. If you are really verbose, you could stretch it out to a one-pager. 

 

Anyone who thinks that Buffett and Munger and Dimon aren't able to immediately grasp the essence of bitcoin is delusional. It reminds me of the Valeant bagholder's who thought Munger just didn't understand...

 

---

As always, Matt Levine captures this well:

 

A crypto token is also an electronic token that you can buy or sell for money, but in a purified form. There’s no company, no product, no earnings, no cash flow. Sometimes a lot of people want to buy the token, and its price goes up; other times, they want to sell, and its price goes down. You have the most salient feature of finance — a volatile electronic token that you can trade — without any of the other features. There is less to learn!

Oh this is unfair and oversimplified, your crypto project is different...

Edited March 23 by KCLarkin

[SharperDingaan]

Re crypto investment:

 

To most people crypto investment is simply entertainment; mouthing off for kicks/glory, and gaming for a quick fortune over a few hours/days. It floats both the development and social media communities, and creates a market for the sale of sh1te coin. Not a lot different to venereal disease, it's just part of the environment.

 

To many on the cocktail circuit, it's just an entertainment talking point. It's a scam!, that SBF crook!, that Reddit IPO - what a dog! Lot of gaming, trading of tips, and a lot of what's 'said' is often not what's actually done. But .... even if they had been tipped to buy Apple at $10/share, most would simply freeze in the headlight. Noise.

 

Both the trading and the development community are all about the latest sardine; if you aren't trading it, or developing/marketing it, you aren't playing the game. Get rich by actually investing, and you're despised - as you've done squat, and are nothing but a HODLer. Of course .... they have to trade &/or develop, whereas you don't. Jealousy. 

 

The reality is that crypto has no comparable, and its use in investment is rapidly evolving. Like it or not it is functionally BOTH an asset class; AND its main asset (BTC), is a cash equivalent; get over it. Recognise that every IPS that does not include BTC/CBDC in its cash/cash equivalents weighting is obsolete, and you immediately add a sizeable global demand to BTC.  

 

It takes both courage and maturity to be able to think for yourself, and more still to act on your own conclusions. You get paid to recognise opportunity, take on the risk, and you do what you can to mitigate it. Do it well, and over time, you can expect to become very successful. And all those 'haters' ..... actually work for you ... at zero pay! 

 

SD

Edited March 23 by SharperDingaan