I’ve been monitoring cryptocurrencies, especially Bitcoin on and off for a few years now and I have my reasons for investing in it.
My first venture into cryptocurrency was back in December 2018. I invested USD 288 (or approximately RM1,256) back then.
In my review of Luno in August 2020, my portfolio stood at RM3,808.
Cryptocurrency investment has been one of my biggest regrets. I regret not having put more money here. Of course, hindsight is always 20-20 but nonetheless, it is one of many regrets for me.
Bitcoin as a Store of Value
Firstly, I see bitcoin as digital gold. As we transition to a digital economy, bitcoin will eventually challenge gold as a global store of value.
Like gold, bitcoin is limited in its supply. Bitcoin is limited to only 21 million. Forever. Not only is bitcoin scarce and durable like gold, but bitcoin also improves upon many of physical gold’s characteristics. Bitcoin is divisible, verifiable, portable, and transferable.
If bitcoin were to take just a 10% share of the physical gold market, we could see its value increase 5X to $1 trillion.
With the continuous printing of money, bitcoin has been viewed as an asset similar to gold in the modern world as a hedge against inflation. A good article on this can be read hERE.
My next reason for investing in bitcoin is its sheer potential upside. There are many theories and thoughts on bitcoin’s adoption as a currency. Or even as a global settlement network for banks as businesses.
We’ve already seen PayPal recently move in that direction. Payment systems like Square Inc have bought into bitcoin. The potential is there. Unlike gold, gold has already plateaued whereas bitcoin’s potential is still vast.
I’ll be looking closely at Bitcoin and Ethereum especially moving forward. Although volatile in nature, with bigger upside potential, I’ll prefer buying Bitcoin to Gold when it comes to hedging.
My Crypto Portfolio Update
So! All time high. What now?
Got another 50% in a month. Bitcoin has reached its previous historical peak. So moving forward, depending on how the market moves, I will react accordingly to either sell or continue to HODL!
Gross Investment: RM13,808
Market Value: RM25,420
Capital Gain/Loss: +84.10%
Where I Store My Bitcoins
As mentioned in my earlier posts, I’ve moved all of my crypto holdings to Luno. I used Exodus as a wallet and exchange prior to Luno.
Luno works well for me as it not only lets me store my coins but is an exchange as well. Being a Malaysian and with Luno being given the nod by our own Securities Commission to operate in Malaysia, I’m going with them.
If you are looking to move to Luno as well, make use of the following code –LNDVDMAGIC50 , you will get RM50 worth of Bitcoin when you buy RM500 or more. That’s an instant 10% return on your investment.
The full promo rules can be accessed hERE.
Please go through them carefully to meet the criteria for that RM50.
It is important to note that I view cryptocurrencies as a form of investment. I don’t intend to use my Bitcoins in Malaysia to purchase goods and services. I do however am keeping tabs on developments in that sector as it will have an impact on prices.
I’ll be moving more of my cash into Luno and increasing the size of my crypto portfolio in the future when the price is right. At least that’s the plan right now.
Just as how I prefer to purchase a mother share over warrants and how I prefer to buy shares of the main company over its subsidiaries, I’ll be focusing more on Bitcoins compared to other coins.
With the increase in Bitcoin prices recently, I’m excited to update this.
During the month of October, in line with my investment goal of having cryptocurrency make up about 1-5% of my portfolio, I added RM10,000 to Bitcoin and Ethereum. This resulted in an increase in my gross investment from RM3,808 to RM13,808.
Gross Investment: RM13,808
Market Value: RM18,088
Capital Gain/Loss: +30.99%
Bitcoin’s price today is at RM57,490 per bitcoin.
My total crypto portfolio value in Luno is RM18,088.
- 0.1962 BTC – RM11,285
- 3.1900 ETH – RM5,150
- 0.003866 BCH – RM4.23
- Cash – RM1,648
I’ll calculate my gross investment as RM3,808. It’s a rough estimate as this includes mining and unfortunately, I did not keep track of those properly back when I started in 2019.
Gross Investment: RM3,808
Market Value: RM5,528
Capital Gain/Loss: 45%
Bitcoin’s price today is at RM44,876 per bitcoin.
My total crypto portfolio stands at RM5,528.
It comprises of:
- 0.083395 BTC – RM3,742
- 1.200000 ETH – RM1,781
- 0.003866 BCH – RM4