Skip to main content

The economics of crypto investing

If you believe in the greater fool theory, there is no other market as speculative and volatile as the crypto market today. We are perhaps living in the biggest bubble of our times. I am not bullish on this market in particular. I am bullish on the mania. 90% of the cryptos we see today will crash. They are just tokens with no tangible value generation capability. However, I believe that the mania and euphoria will stay.

Having said that, should one consider investing in this market? Certainly!
The risk/reward is lovely, potential upsides and margins are huge and with 3-5% of your net worth, the bet on the mania is worth it.

How does one choose where to invest?

If you follow the stock markets, you are expected to do thorough Fundamental Analysis before investing. Expect the same for the crypto market. I invest in large caps. I invest in index funds. And I invest over and over again. Markets rise, always. Extrapolating the same strategy - invest in indices - the top 10 tokens by performance. Diversify. My personal picks? Ethereum and Neo. Ethereum is more than just a notional digital currency. It is a platform. Invest in platforms. Even if only 10% of the platform's consumers (other tokens, decentralized apps here) survive, the platform survives.

Do you invest in crypto currencies? Interested in writing bots and algos? Hit me up.


Comments

Post a Comment

Popular posts from this blog

Capture and compare stdout in python unit tests

A recent fan of TDD, I set out to write tests for whatever comes my way. And there was one feature where the code would print messages to the console. Now - I had tests written for the API but I could not get my head around ways to capture these messages in my unittests.
After some searching and some stroke of genius, here's how I accomplished capturing stdout.


Before you "judge" a python programmer

If you're coming from a compiled language context, using exceptions for flow control would look odd to you. But here's the thing - in the python world, exceptions are super cheap and using them for flow control is the "idiomatic python" way!
In fact, exception-driven flow control is built right into the language itself e.g. the "for" loop in python terminates when the iterable raise a "StopIteration" exception!

There is a lot of material on the internet already on the topic, so if there's one thing you take out of this post, it's this - in python, it's "Easier to Ask for Forgiveness than Permission"!