Crypto could cause 2008-level meltdown, Bank of England official warns

[cyclone]

Crypto could cause 2008-level meltdown, Bank of England official warns
* In a speech Wednesday, Cunliffe likened the rate of growth of the cryptoasset market, from $16 billion five years ago to $2.3 trillion today, to the $1.2 trillion subprime mortgage market in 2008.
* Regulators around the world have begun work to establish a public policy framework through which to manage the exponential growth of cryptoassets, but Cunliffe said this must be pursued as a matter of urgency.

Elliot Smith
PUBLISHED THU, OCT 14 20216:41 AM EDTUPDATED THU, OCT 14 20217:31 PM EDT

The Bank of England’s deputy governor for financial stability, Jon Cunliffe, has warned that cryptocurrencies could spark a global financial crisis unless tough regulations are introduced.

In a speech Wednesday, Cunliffe likened the rate of growth of the cryptoasset market, from $16 billion five years ago to $2.3 trillion today, to the $1.2 trillion subprime mortgage market in 2008.

“When something in the financial system is growing very fast, and growing in largely unregulated space, financial stability authorities have to sit up and take notice,” he said.

Cunliffe acknowledged that governments and regulators must be careful not to overreact or classify new approaches as “dangerous” simply because they are different, and also noted that crypto technologies offer a prospect of “radical improvements” in financial services.

However, he contended that although financial stability risks remain limited for now, the current applications of cryptoassets pose a financial stability concern since the majority “have no intrinsic value and are vulnerable to major price corrections.”

More details in https://www.cnbc.com/2021/10/14/crypto-c...warns.html

[BlueKelah]

Not just cryptoassets getting pumped, all the fed and other central bank stimulus is flowing into tech stocks & property. Its the bubble of a life time! eventual downcycle if it ever happens will be spectacular!

[¯|_(ツ)_/¯]

In term of awareness, I think almost every valuebuddies must had known about the crypto hype.

For those more inquisitive or more daring, dipping our toes into some famous cryto like BTC, ETH or/and XRP is just another page/episode of our investment journey.

Like what BlueKelah says, "it's a bubble of a life time".  We could watch the bubble (boom and then burst) and claimed that we foresaw the burst.

OR, as some preferred, participate in the journey and if luck is on our side, handsomely rewarded?

--------------

Tell you a story.
I like to read books and I was exposed to crypto many many years ago.
Yes, BTC was invented more than 10 years ago.
I even wrote programs on BTC mining and of course, I did not keep those coin that I mined because at that time BTC was just a USD$2. Who would had guess that BTC is worth USD$60,000 now?

Few years back, roughly 2018, I was re-introduced to BTC and I vested a little when BTC was USD6,000.

Then, it just zoom pass USD10,000 and the bubble burst at USD20,000+. 

When it dropped to USD8,000, I initiated my 2nd purchase.

After these 2 pop, there was no chance for me to buy more (on the cheap).

I kept these 2 batches in separate crypto exchange, for obvious reason.

As of today, they are roughly 3% of investment.  Nobody could tell the future. What we do know is cryto is generating momentum, cryto is gaining traction with the business and best of all MAS+DBS is pushing cryto platform like mad.

Now, you heard my story, what are you going to do?


https://vulcanpost.com/745061/dbs-ceo-cr...lockchain/


https://drive.google.com/open?id=1labC8D...siv8QhM111

Gratitude.

[gzbkel]

momentum and stories? I prefer value

[¯|_(ツ)_/¯]

bro gzekel, good morning.
We are all valuebuddies and apply value investing is in our blood. 

Unfortunately, I'm not a Business or Financial analyst and I could not write those PE/PB/Intrinsic values type of investing thesis.  I would have to leech on value investor like your kind self for fishes and fishing too.

I know that many people shun away from crypto exactly like what one of our valuebuddy says: "Virtual currency is worth virtually nothing." - which I admit that it is true.

However, that does not deter me from learning what I wanted to learn. To me learning is part of my value investment journey.  I learn to be successful and I learn from my failure too.  Right?

I am not encouraging our valuebuddies or anyone to buy BitCoin, nor I'm here to push for any crypto, I'm here to share some of my stories (learning experience) and I do hope someone, somewhere could profit from my stories too.

Besides, a lot of our valuebuddies actually graduated with IT certificates or is using IT extensively in their regular daily works and activities. So, learning about crypto/blockchain is just another programming platform/concept. Nothing to shout about.

-----------------------------

I begin my BitCoin journey by programming.  

I chanced upon a BitCoin programming book and so just punch in the code and start running it.  After that learn how to join my node into one of those mining clusters.  That was BitCoin at its infancy stage when people was trying out buying pizza and paying with BitCoin(s). 

Nothing much happened and I never intended to earn any $$$ and in fact, the coin was so insignificant that I couldn't bother with it.  It's just another programming exercise to harness the concept of blockchain bar.

---------------------------

One day, after many many years, during lunch time chitchat session, one of my colleagues was talking about launching of ICO.  Well, IPO we all understand, ICO was new to me.  So, I just took out $2000 and hand it over to my colleagues to participate in the ICO.  You could guess the outcome of my initial investment in crypto, right?   

As virtual currency become hotter each day, it ignited my curiosity to learn more.   You see, my initiate journey begin by learning about blockchain and ended after joining my node to a mining pool.  It's pure technical know-how/knowledge.  The concept of virtual currency does not exist.  To me BitCoin is just a floating point integer. 

I borrowed a few books from NLB and in particular, one of the book resonance with me (my experience in ICO):
"Handbook of digital currency: bitcoin, innovation, financial instruments, and big data" by David Lee Kuo Chen.

It's a wopping 588 pages book and it's contains all about crypto currencies and in particular ICO.
https://www.amazon.com/Handbook-Digital-...+Chuen+Lee

After this stage of learning, I am fully aware of the different type of ICO and zoom into XRP, ETH and BTC.

To kick start the next phase of my learning process, I explored the opening of trading accounts, transferring $$$, wallets and coins.

It's not an easy process at that time and I hope it's much easier for you now.  Just a word of warning, the KYC process could takes a long time and it will make sense for you to get ready your account now instead of waiting until when you wanted to start.  

For example, in my case, I was in the learning mode (at that time) and hence, I open accounts with different trading platform.  The first one that grant me trading access took about 3 days and that's when I brought my first trench of BTC at $6,000.  This platform does not allow me to queue for the bid price.  It only provide market order.

Unfortunately, I was stuck at the KYC process for another platform.  It took me about 1 month to grant me the trading access.  This platform offers GTM instruction and is actually the idea place to trade.  My 2nd trench of BTC was brought in at $8000.  Since then, I'm not able to pull the 3rd trigger as BTC had not fall bellow $6-8k.

I do hope you enjoy reading my investment journey and hope to see more post on value investment from everyone soon. 

Below is an extract from a news that SGX invested into DBS Crypto Exchange and the reason why:


https://drive.google.com/open?id=1TA-9tz...PKiq6IUnq4

Gratitude.

[Ben]

Thanks ¯|_(ツ)_/¯ for sharing your story on your investment journey on crypto. Your interest + actions + hard works led to your success in this venture! All of us have different background and experiences, but to achieve success, we go through a more or less similar process: interest + actions + hard works.

Was having a coffee session with a friend lately who is always looking for ways to make easy money. I don’t think there is such a thing as easy money, but there is definitely easier way to make money if we keep improving on doing what we are good at.

[¯|_(ツ)_/¯]

hey Ben, I always thought that a "right" pick is at least 2/3 based on luck!

I mean, if a wise, knowledgeable and intelligent investor is what it takes to be successful, then why not all those "wise, knowledgeable and intelligent" investor be billionaire? or those who is "smart and hardworking" investor too.

I chanced upon a blog post by SG TTI written few days ago: 
Investing is A Weird Game

Basically, a lot of MNC allow their staffs to use says 10% of their monthly salary to buy the company stocks.  Typically, the purchase price will be lower (says 10%) than the market price, or the purchase price is at the lowest point of the previous month.  In all cases, there will be some discount.

SG TTI wife did exactly that.  With only one stocks in her portfolio, her 3 years returns of 140% was significantly higher than SG TTI's return. 

Isn't it luck at play?


https://drive.google.com/open?id=1OrD415...pXeCCqkQbh

Gratitude.

[Ben]

For most of us who are long enough in the investment game will, occasionally, hit jackpot by buying at the lowest point, or sell at the highest point, right? We tend to attribute this to good luck, but is it really so? What makes us trigger the buy/sell at certain price? It’s lots of background homework.

OTOH, we may also buy at the highest point and sell at the lowest. Why? Bad luck? It’s probably something went wrong with our thought process, or miscalculation based on wrong assumption etc.

So, while I agree that luck is very important, luck seems to happen more often to those who seek.

If success is 2/3 attributed to luck, I will just close my eyes and buy any 3, knowing that I will be lucky 2 out of 3 times.

How many investors are Wise And Knowledge And Intelligent? How many are Smart And Hardworking? Very very few. Replace the And with Or, that will be more realistic, IMO.

[¯|_(ツ)_/¯]

I think we are on the same page aka luck is very important, except my view it actually carries a heavy weight - 2/3 of success.

Of course, I'm not doubting the need for creativity, innovative, hardworking, intelligent, knowledge and wisdom etc. These are also very important, but you know what I mean 

I'm not sure whether you know SG TTI. This guy i actually one of the top financial blogger here.  I had been following him for many years already.  He is well respected by many, including me.

I ranked him as highly creative, inquisitive, intelligent and extremely hardworking.

So, he belongs to the intelligent investor category.
His wife is rather unknown to us.  But, from the latest post written by SG TTI, his perception of his wife investment journey is effortless... just choose her company stocks and let it run by itself.

We still do not know whether his wife belongs to the intelligent investor category or just the lucky category.  But, it's clear that his wife investment result out perform his during Covid 19 period.

If this is not luck, what could it be?

Since this thread is about Cryto, I brought BTC at 6 - 8k just few years back.  I won't had know that BTC would be worth USD60k today.  I am sure there are a lot of valuebuddies who brought BTC at a lower price than me and they are making more $$$ than me.

Remember, Virtual currency is worth virtually nothing. So, my only explanation for my BTC performance is - due to luck.   

In any case, hope everyone had a enjoyable investment journey.
Success or not, is too early to tell.  And, I'm very very appreciative of all the tips that you had given me and I am forever in debt to your kindness.

Gratitude.
 

[specuvestor]

A swallow does not make a spring; or a stop clock is also right twice a day.

My opinion in this much discussed topic of the industry is that if you can do it consistently over a cycle then it is whatever you want to call it: luck, karma or... hardwork.