Cryptocurrencies

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evilwebby said:
Can't discount it pushing higher, as it's virtually impossible to pick the top in a bubble, but it has all the hallmarks of every bubble that ever existed. The downside will be epic.
Bitcoin/cryptos should be 5% or less of your portfolio if you want exposure. That is a far cry from the people remortgaging their houses in order to jump onboard the crypto train driving by FOMO.
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Not heard of too many remortgaging houses to fund this? Compare it to the leverage in housing for example, far more extreme.

My exposure in crypto now is at around 30% of net worth and I’d be comfortable with a higher amount going into 2018. Considered redirecting some into gold and silver but these seem wholly out of favour at present.
 
Kev The Rat said:
Not heard of too many remortgaging houses to fund this? Compare it to the leverage in housing for example, far more extreme.

My exposure in crypto now is at around 30% of net worth and I’d be comfortable with a higher amount going into 2018. Considered redirecting some into gold and silver but these seem wholly out of favour at present.
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Houses have an easily definable income stream so are easy to value as a real asset. Companies have capital and know-how that input and create something worth more than the sum of the inputs, so have real net worth.

BTC is just computer digits. you can't can't eat it, can't wear it, and if you're stuck on a desert island it can't improve your life. When the music stops and enough people eventually realise this, they're return to their intrinsic value, which is not quite zero (the technology will prove useful in time), but it is certainly not what some people currently think it is.

I'll be the first to admit that BTC price has gone far higher than I ever thought, but yesterday's growth doesn't help anyone who's buying into it now. Yes, you may be able to make 10% or 20% in a short time just because it is so volatile, but that is like trying to pick up pennies in front of a steam roller.
 
In the interests of another POV:

This fund manager has 50% of his hedge fund in BTC: https://dailyreckoning.com/picking-crypto-pennies-front-steamroller/

BUT

that is because he put in 5% a couple of years ago and has ridden the rollercoaster all the way. No sane fund manager would dream of putting 50% into it today.
That is how you should approach these high risk/high reward scenarios.. Rule 1 of making money is not losing money. Take a small manageable position and hope that it moonshoots to give your whole fund a healthy return, if it busts then it's barely a dent in your overall portfolio.
 

Kev The Rat said:
Not heard of too many remortgaging houses to fund this? Compare it to the leverage in housing for example, far more extreme.

My exposure in crypto now is at around 30% of net worth and I’d be comfortable with a higher amount going into 2018. Considered redirecting some into gold and silver but these seem wholly out of favour at present.
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By my very rough calculation, your Bitcoins are worth about 400k, so you're saying your net worth is ~ 1.3Million GBP ?
I think the very least you could do is upgrade to become a Forum Supporter mate !
 
Kev The Rat said:
Not heard of too many remortgaging houses to fund this? Compare it to the leverage in housing for example, far more extreme.

My exposure in crypto now is at around 30% of net worth and I’d be comfortable with a higher amount going into 2018. Considered redirecting some into gold and silver but these seem wholly out of favour at present.
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Go for it Kevin, you clearly know what you're doing.
 

evilwebby said:
Houses have an easily definable income stream so are easy to value as a real asset. Companies have capital and know-how that input and create something worth more than the sum of the inputs, so have real net worth.

BTC is just computer digits. you can't can't eat it, can't wear it, and if you're stuck on a desert island it can't improve your life. When the music stops and enough people eventually realise this, they're return to their intrinsic value, which is not quite zero (the technology will prove useful in time), but it is certainly not what some people currently think it is.

I'll be the first to admit that BTC price has gone far higher than I ever thought, but yesterday's growth doesn't help anyone who's buying into it now. Yes, you may be able to make 10% or 20% in a short time just because it is so volatile, but that is like trying to pick up pennies in front of a steam roller.
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The fact remains that housing is largely based around debt - and huge amounts of it. As for companies - I’ve seen companies that look completely sound on paper disappear into nothing overnight.

In terms of an asset liquidating property is extremely hard and cumbersome - most of my net worth is tied up in housing and its money I’ll never see.
 

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