Any critics about my portfolio?

[SebastianJu]

I now bought a small portfolio while taking a look at the roi mostly. Second look was if the project looks trustworthy and i spreaded the risk a bit. So now i have:

Code:

BIF.BTCST.PPT 	3 	BTCST
TYGRR.BOND-P 	2 	BTCST
FOO.PPPPT 	2 	BTCST
BIB.PIRATE 	1 	BTCST
FPGAMINING 	3 	Mining
OBSI.1MHS 	35 	Mining
JTME  		3 	Mining

Any critics about this portfolio? I bought always for the lowest Ask-Price to have the share instantly so i had to pay some fees. In total: 0.0763445 BTC in fees. I think thats ok.

On the other hand bitcoin was 7.2usd at end of july the 11th and at the end of august the 11th it was at 11.5813usd which means around 61% more value after one month. Even the best assets, that use BTCST, which maybe even is an hyip only has only half that performance. So im asking myself if the best investment wouldnt be to have it invested in bitcoins only. But when im thinking over it... that seems to be a wrong thought, because the BTCs are invested and not turned into another currency and the dividends are bitcoins too. So in total after a month you have more bitcoins because of the dividends and you have more usd-value for each bitcoin because of the currency exchanging value. Or is there another wrong thought in this?

You think i should risk less bitcoins in btcst?

Thanks!
Sebastian

[DeaDTerra]

It depends on what risk profile you want. Right now you have a pretty high risk but also a high reward kind of portfolio. There's nothing wrong with that as long as you aware of the risk.
//DeaDTerra

[SebastianJu]

Do you see risks in the Mining-Assets i bought or only the btcst ones?

[PsychoticBoy]

I think he is talking about the btcst thingies (the PPT`s).
Major RISK!


Greetz

[SebastianJu]

Ok, ill think about what i will do. Most of the btcst-fonds will get dividend in the next 1 or 2 days. I will wait till that dates at least.

[Lethos]

I've just got into securities as a nice stable place to earn interest, until I feel like selling a good chunk of my bitcoins.
I like mining based securities for that safe bet aspect, so I think you are doing okay having an even spread.

[AngryCatfish]

I love the idea of seeing other people portfolio, should a new thread be made or could this be used for that? Is there any risk I may be missing with sharing that info?

[BitcoinINV]

I love the idea of seeing other people portfolio, should a new thread be made or could this be used for that? Is there any risk I may be missing with sharing that info?

sounds like a great idea!

[BadBitcoin (James Sutton)]

I love the idea of seeing other people portfolio, should a new thread be made or could this be used for that? Is there any risk I may be missing with sharing that info?

yeah its not like there is any "lucurative" investments right now, anything better than anything else, I'd be happy to post mine.

[ShireSilver]

I know I'm very heavy into pirate based investments right now, but then I need the growth more than the safety. My medium to longer term strategy is to gradually shift my dividend reinvestments from pirate based to safer stuff like mining. I don't believe BTCST will last forever, but am hopeful that it winds down nicely when it needs to. In this manner I hope to gradually grow into more safety.

One thing I do like to do is when I buy some shares I figure out what price I'd sell for and set up the sell. For example, I might buy 10 shares of YARR for 1.6 and immediately place a sell order for 10 at 1.9 - that way if for some reason it jumps up I make a nice deal. When I first started BTC investing I did that for some PPT.x shares and made a better deal than holding them would have.

[odolvlobo]

My thoughts:

• For the small amount in BTCST, I would just combine them into 1 security to avoid having to keep track of 4.
• You must also consider the change in price of the bonds. Mining bonds have not been a good investment lately because their prices have dropped so much.
• By belief is that BTCST is not just "risky", it is certain to fail and investors will lose everything. Others disagree.
  

For example, I might buy 10 shares of YARR for 1.6 and immediately place a sell order for 10 at 1.9 - that way if for some reason it jumps up I make a nice deal.

Then what do you do with the BTC? Buy more YARR? Playing volatility games is tricky. I wouldn't build my whole investment strategy around it.

[SebastianJu]

My thoughts:

• For the small amount in BTCST, I would just combine them into 1 security to avoid having to keep track of 4.

I could do this, but its not only that btcst could crash, it could happen too, that one assetowner will go home with the bitcoins he had. So playing his own little hyip. This way i have spread the risk about 4 assets of this type. But i will go out of them anyway. The earning earned more above miningassets related to the risk isnt good enough i think.

• You must also consider the change in price of the bonds. Mining bonds have not been a good investment lately because their prices have dropped so much.

But the prices should only drop when the dividends are lower. Or the bonds were overprized. I hope i made a good buy now, when the prices dropped and hopefully they dont go down in future.

• By belief is that BTCST is not just "risky", it is certain to fail and investors will lose everything. Others disagree.
  

I think youre right here. It looks too much like a hyip. Only thing thats unusual in my opinion is the high price for a share of btcst. Normally hyips take very low amounts of money too to maximize the profits. But, like i said, i wont take the risk in the future.

[ShireSilver]

For example, I might buy 10 shares of YARR for 1.6 and immediately place a sell order for 10 at 1.9 - that way if for some reason it jumps up I make a nice deal.

Then what do you do with the BTC? Buy more YARR? Playing volatility games is tricky. I wouldn't build my whole investment strategy around it.

Well, if YARR were to drop back down then why not pick up more? But there's always other options available. It depends on what the conditions at the time are.

But overall my strategy is roughly to risk the initial principle on BTCST derivatives and reinvest the dividends in safer choices. Once the non-BTCST investments reach parity with the original principle (which will be pretty soon for me) then even if BTCST disappears outright then I'm no worse off than before I started. But then I'm willing to take more risks than the average person.

[Bjork]

needs more GIPPT and BDT

[piotr_n]

Any critics about this portfolio?

You have either BTCST or Mining bonds.
Maybe you'd like to look into assets that are neither of the two, like: SILVER, CIUCIU.BOND or BDT.

Also, from the mining bonds, I can recommend MOORE, which should keep up the value while the other mining bonds are falling.

And, as when it comes to BTCST pass-through investments, after couple of months of dealing with GLBSE, I finally realized that services like BitcoinMax and Hashking are far much better for this.
They provide a better interest rate and also a better liquidity, meaning: easier and cheaper to withdraw your money from BTCST when you want it.
You can also open a savings account at the pirate directly, removing the middle man risk at the cost of lower interest rate, but there you need to put in at least 100 BTC.

[brendio]

On the other hand bitcoin was 7.2usd at end of july the 11th and at the end of august the 11th it was at 11.5813usd which means around 61% more value after one month. Even the best assets, that use BTCST, which maybe even is an hyip only has only half that performance. So im asking myself if the best investment wouldnt be to have it invested in bitcoins only. But when im thinking over it... that seems to be a wrong thought, because the BTCs are invested and not turned into another currency and the dividends are bitcoins too. So in total after a month you have more bitcoins because of the dividends and you have more usd-value for each bitcoin because of the currency exchanging value. Or is there another wrong thought in this?

One thing to keep in mind when choosing assets if you are considering changes in exchange rate is whether the asset is more correlated with BTC value or fiat (USD) value. Pure BTC bonds, such as the BTCST passthroughs, as well as TEEK.A and .B etc are fully correlated with BTC value.

Mining assets tend to be more correlated with fiat value, because when the BTC exchange rate increases, difficulty tends to increase as well. Also, even if denominated in MH/s, mining bonds or shares represent a certain amount of mining hardware (and possibly prepaid costs, such as electricity and depreciation, which are denominated in fiat), the value of which correlates more closely to fiat values.

Some assets are a mixture. BIB.BVPS is probably more correlated to fiat values, because their costs and the sales, while paid in BTC, correlated with fiat values.

If you are aiming for a mixture of BTC and fiat exposure, it is good to know what type of investment an asset represents. If you wish to maintain a certain level of exposure to the bitcoin price, you can hedge investments in "fiat-correlated" assets by buying more bitcoin in an amount corresponding to your investment, or by taking a leveraged position (e.g. POLY.10.1).

Disclosure: The author operates assets on GLBSE and holds investments in some of the assets mentioned in this post.

[SebastianJu]

Any critics about this portfolio?

You have either BTCST or Mining bonds.
Maybe you'd like to look into assets that are neither of the two, like: SILVER, CIUCIU.BOND or BDT.

I checked them out but they only bring 13%, 16% and 40% of the ROI that the best BTCST brings i bought. The last one is a good chunk better than the other 2 and brings back initial investment after 7,29months. Thats better than pyramining at least. But glbse has better miner than that. Not to speak of btcst ones.

Also, from the mining bonds, I can recommend MOORE, which should keep up the value while the other mining bonds are falling.

Moore has break even after 26 months only.

And, as when it comes to BTCST pass-through investments, after couple of months of dealing with GLBSE, I finally realized that services like BitcoinMax and Hashking are far much better for this.
They provide a better interest rate and also a better liquidity, meaning: easier and cheaper to withdraw your money from BTCST when you want it.
You can also open a savings account at the pirate directly, removing the middle man risk at the cost of lower interest rate, but there you need to put in at least 100 BTC.

I checked out the 2 sites you mentioned and it looks like they pay 6.91% per week. At glbse you have projects with up to 7,84%. So i think when risking it to invest in btcst i would prefer the glbse ones.

But in total i critisize the assets on a high level when speaking of projects that bring in 54% to 164,54% interest each year. (I mean the first 3 and moore)

[SebastianJu]

On the other hand bitcoin was 7.2usd at end of july the 11th and at the end of august the 11th it was at 11.5813usd which means around 61% more value after one month. Even the best assets, that use BTCST, which maybe even is an hyip only has only half that performance. So im asking myself if the best investment wouldnt be to have it invested in bitcoins only. But when im thinking over it... that seems to be a wrong thought, because the BTCs are invested and not turned into another currency and the dividends are bitcoins too. So in total after a month you have more bitcoins because of the dividends and you have more usd-value for each bitcoin because of the currency exchanging value. Or is there another wrong thought in this?

One thing to keep in mind when choosing assets if you are considering changes in exchange rate is whether the asset is more correlated with BTC value or fiat (USD) value. Pure BTC bonds, such as the BTCST passthroughs, as well as TEEK.A and .B etc are fully correlated with BTC value.

Mining assets tend to be more correlated with fiat value, because when the BTC exchange rate increases, difficulty tends to increase as well. Also, even if denominated in MH/s, mining bonds or shares represent a certain amount of mining hardware (and possibly prepaid costs, such as electricity and depreciation, which are denominated in fiat), the value of which correlates more closely to fiat values.

Some assets are a mixture. BIB.BVPS is probably more correlated to fiat values, because their costs and the sales, while paid in BTC, correlated with fiat values.

If you are aiming for a mixture of BTC and fiat exposure, it is good to know what type of investment an asset represents. If you wish to maintain a certain level of exposure to the bitcoin price, you can hedge investments in "fiat-correlated" assets by buying more bitcoin in an amount corresponding to your investment, or by taking a leveraged position (e.g. POLY.10.1).

Disclosure: The author operates assets on GLBSE and holds investments in some of the assets mentioned in this post.

Yes, Mining is getting harder constantly. But hopefully the assetholder are updating constantly too, so the hashingpower is rising. But of course the effect is there. I think one has to constantly check out dividends and price per share to check out if the things move into wrong direction. BTCST is without fiat but on the other hand it maybe holds a greater risk.

[piotr_n]

Maybe you'd like to look into assets that are neither of the two, like: SILVER, CIUCIU.BOND or BDT.

I checked them out but they only bring 13%, 16% and 40% of the ROI that the best BTCST brings i bought. The last one is a good chunk better than the other 2 and brings back initial investment after 7,29months. Thats better than pyramining at least. But glbse has better miner than that. Not to speak of btcst ones.

But they are not exposed to BTCST default and resistant to the mining difficulty growth.

Also, from the mining bonds, I can recommend MOORE, which should keep up the value while the other mining bonds are falling.

Moore has break even after 26 months only.

But after 26 weeks it gives you much better chance of selling them at the price you paid.

I checked out the 2 sites you mentioned and it looks like they pay 6.91% per week. At glbse you have projects with up to 7,84%. So i think when risking it to invest in btcst i would prefer the glbse ones.

Well, if you have projects at GLBSE with up to 7,84% then I'm happy for you


My general advise: start with small amounts, see how the prices change, observe the liquidity, and after 3 months or so you will get to the same conclusions as I have.

[Rockefoten]

BTCST is without fiat but on the other hand it maybe holds a greater risk.

BTCST is without doubt huge risk, but equally interesting is how this risk could affect the risk of other assets.
In addition to BTCST continuing for eternity, there are 2 possible outcomes:
1) Pirate defaults partially or completely.
Will this lead to a market crash as investors lose confidence in Bitcoin or the BTC securities market, or will it have little or no effect on other assets?

2) Pirate does an orderly shut-down and returns alle funds to investors.
Will this lead to a asset price boom as a huge amount of capital suddenly made idle starts to chase after the other avaible assets? Or will the previous BTCST investors be content with their earnings and withdraw their BTC from GLBSE?

Of course it's impossible to predict what will happen, and I'm aware that I laid things out quite black and white here.
My point is that even though one is not invested in Pirate's, this does not mean that one is insulated from risk associated with the BTCST, as what happens with BTCST could very well affect the rest of the securities market, at least short-term.