Monetary Authority of S’pore issues bitcoin warning


After warning issued from China, India, Malaysia, Thailand Central bankers, many monetary regulatory seems to follow suit and came forward to warn the RISK of investing in Bit-Coin....as it may turn out to become a "systematic risk" which really can create "chaos and havoc " to the financial market/system if it continues to grow at "exponential " rate before it collapses. This could be seen from the total market cap for Bit-coin which is around USD290 BIL ( at the supply of close to 16 mils) , can you imagine if the total supply achieves the full amount of 21 MIL, and if the price hit USD50,000, what will be the total market cap of Bit-coin?



As mentioned, in most of the case people may just ignore the warning from these regulations and the huge RETURN expected has outweighed the RISK they perceived.





I am sure the market cap of Bit-coin may surpass the GDP of Singapore soon !! Hurray !!



Cheers !!


PS:  My previous blog post about Bit-coin (here ) and ( here )


Global regulators warn of a risky bubble in bitcoin as Singapore’s central bank urges ‘extreme caution’ ( Link here )


Comments

  1. CreateWealth888820 December 2017 at 13:35

    So far I read from blogs, nobody will be seriously burnt. Bet small small. No tulip mania yet, sold house to buy tulips.

    ReplyDelete
    Replies
    1. STE20 December 2017 at 20:36

      Hi Uncle CW8888,
      Yah , bet small just for fun and for the $$ we can afford to loss is still OK "小赌怡情",
      Yup..the party may continue for longer period of time ...as what Keynes said “The market can stay irrational longer than you can stay solvent.” , same for some speculative items..
      Cheers !! :)

      Delete
  2. Investminds30 December 2017 at 10:12

    it is too risky as there is no fundamentals for bit-coins. A bubble is forming and it is a matter of time bubble will burst and many investors will get burnt. I rather go for proven dividend stocks with good yield. happy new year STE.

    ReplyDelete
    Replies
    1. STE30 December 2017 at 22:39

      Hi Investminds ,

      Thanks for the comment , Yes , the Crypto is really highly speculative investment (??) , one will definitely need to DYODD if they choose to invest ...
      Cheers !!

      Delete

Post a Comment

Related Posts Plugin for WordPress, Blogger...

Labels

Show more

This Month's Top Blog Posts

2023 Portfolio & Dividend Update

Image
  A Rollercoaster Ride I know, Uncle was really late to have this 2023 performance review as we are already in February 2024 😊 . Pai-seh, I was busy with a family trip to Korea followed by a Cruise Trip onboard RCL. Also, during the school holidays, we went a few times short trips to Malaysia and back to my hometown. My younger daughter got her O Level result followed by searching and applying for JC. That’s why I have been delaying this update and dragging my feet to write this blog post. I think most of us had the same feeling that 2023 was a challenging yet dynamic period for investors, marked by a series of unpredictable events that significantly affected our returns. I have seen my portfolio up by more than 10% in the early part of the year and it dropped by more than -8 % at one time and recovered slightly better at the end of the year with +2.3% (including dividend). As an investor, navigating through such a volatile market requires adaptability, patience, resilience, and
Read more

Stock Market Looks Like A Casino Now : Have Fun !!

Image
  GameStop the Market: Big Bets on Stock Make Wall Street Look Like a ‘Casino’ <source:casino.org>     The biggest bets made over the past couple days haven’t been placed in a casino on the Las Vegas Strip. Instead, the action’s taken place on Wall Street, as a group of stock traders on Reddit have aimed at hedge fund traders, who have made high-stakes wagers that businesses like GameStop and AMC Entertainment would stumble . The Stock Market is a Fun Casino <source:ritholtz.com>   The stock market works  as if  people were investing money in companies; some indirect mechanism ties the secondary trading of stock to the allocation of capital.  1   And of course in the limit companies  can  raise money by selling stock. So buying stock is  like  investing money in a company in exchange for partial ownership of its projects, and the amount you should pay for a stock is basically the discounted present value of the company’s cash flows from its business. The mech
Read more

Regression Line for Major Stock Market Indexes

Image
Mean Reversion : image credit to asymmetryobservation.com Received inquiry from friends/readers about "plotting regression line " for major stock markets other than STI. Would like to reiterate here that the " regression line " is just a "statistical phenomena " same as other indicators in Technical Analysis where we are just using past price trend or movement to manipulate or so call " forecasting " the future price movement.
Read more

Fake News : Dividend Income from STE

Image
<Image credit: to cnbc.com> With the increasing usage of the internet as the main platform of social media for us to communicate and as the source of news replacing traditional printed media, corporate and government starts to pay more attention to the problems and consequence of  “ fake news “ and its impact on society at large.
Read more

Portfolio & Dividends Update : 1st Half 2023

Image
Time flies, and as we find ourselves in the midst of 2023, it is remarkable to reflect upon the passage of time and experience that has unfolded. I’m sure we all have different experiences in the 1st half of 2023 in terms of portfolio management and performance. For me, the last two quarters were like YOYO and my portfolio was performing well till March ( up by almost 11%) with the hope China “re-opening and recovery “But, as time passes, the strength of the recovery is getting weaker month by month and now everyone is hoping for more “ stimulus policies” to boost the economy, with declining economic indicators like retail sales, property sales, high unemployment among youth, slower export due to weak demand from developed countries, lower PPI and almost flat or zero CPI figure. All this has made my portfolio up and down huge, dropping to -2% at one point, and rebounding slightly to 4.68% now, with hopes of more policy support from the government. If you are invested in the US or J
Read more