The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
The bitcoin bubble is going to burst and when it does, PM's will rocket. That's my prediction.
The same old people saying the same old rubbish about Bitcoin. It keeps bouncing back and will be 100k year end as I said back in March. Thank goodness for Bitcoin as opposed to my CEY investment. How much was CEY 12 years ago? 80p. How much was Bitcoin 10 years ago.....$0. I just wish I had invested more :(
Warren Buffett quotes on CryptoCurrencies :
(1) I can say almost with certainty that they will come to a bad ending
(2) Cryptocurrencies basically have no value and they don't produce anything. They don't reproduce, they can't mail you a check, they can't do anything, and what you hope is that somebody else comes along and pays you more money for them later on, but then that person's got the problem. In terms of value: zero
(3) It's ingenious and blockchain is important but Bitcoin has no unique value at all, it doesn't produce anything. You can stare at it all day and no little Bitcoins come our or anything like that. It's a delusion basically
(4) If you and I buy various cryptocurrencies, they're not going to multiply. There are not going to be a bunch of rabbits sitting there in front of us. They're just gonna sit there. And I gotta hope next time you get more excited after I've bought if from you and then I'll get more excited and buy it from you. We could sit in the house by ourselves and we could keep running up the price between us. But at the end of the time there's one Bitcoin sitting there and now we've gotta find somebody else. They come to an end
(5) In terms of cryptocurrencies generally, I can say almost with certainty that they will come to a bad ending. If I could buy a five-year put on every one of the cryptocurrencies, I'd be glad to do it, but I would never short a dime's worth
(6) Probably rat poison squared
(7) It's a mirage basically. It's a very effective way of transmitting money and you can do it anonymously and all that. A check is a way of transmitting money too. Are checks worth a whole lot of money just because they can transmit money? I hope Bitcoin becomes a better way of doing it but you can replicate it a bunch of different ways. The idea that it has some huge intrinsic value is just a joke in my view
(8) it's not a currency. It does not meet the test of a currency. I wouldn't be surprised if it's not around in 10 or 20 years. It is not a durable means of exchange, it's not a store of value. It's been a very speculative kind of Buck Rogers-type thing and people buy and sell them because they hope they go up or down just like they did with tulip bulbs a long time ago
(9) A rising price does create more buyers and people think 'I've gotta get in on this' and it's better if they don't understand it. If you don't understand it you get much more excited than if you understand it
(10) it will feed on itself for a while and sometimes for a long while and sometimes to extraordinary numbers. But they come to bad endings and cryptocurrencies will come to bad endings
@Squid: "Warren Buffett quotes on CryptoCurrencies :"
Here's what Paul Tudor Jones says.
https://www.youtube.com/watch?v=ZQCGLUVVSd4
I hold both crypto- and gold miners (including a decent allocation to CEY for my sins) and am emotionally attached to neither.
Ditto hold both
Oh and to add Warren Buffet said last August he’s buying gold …. Timing when?
Here is what the Oz Govt and the punters think about Crypto and block chain...
....the digital asset sector has grown far too big for governments to ignore. It is valued at $2.8 trillion, Bank of America said in a report this month, which found 221 million users worldwide had traded a cryptocurrency or used a blockchain-based application as at June – four times higher than a year earlier. The committee took evidence that 17 per cent of Australians owned a cryptocurrency; the Australian Taxation Office told it over 600,000 taxpayers have invested in digital assets in recent years.
I am all for structures and processes which take out the middle men in finance, and make financial transactions easily transparent and traceable. The present system is a shonk, and the middle men and women make far too much money for not adding much in value (execept to their own pockets) and far too many fall into the power game...just look at the commodity traders and what they got up to, not to mention the hybrid model of the Brazilian butchers...https://www.thebureauinvestigates.com/stories/2019-07-02/jbs-brazilian-butchers-took-over-the-world
Not to mention the millions which get donated anonymously in Aus to different political parties..all in the name of democracy LOL If you can see this expose it is well worth a watch...
https://iview.abc.net.au/video/DO1914H001S00
best
the gnome
Crypto ? Pyramid selling ..
I think people get confused about crypto's NFT and blockchain, and how these all relate. The NFT market is wild, unregulated and makes punting on Junior Explorers look risk free in comparison.? Yes, there is an element of pyramid selling in some of the crypto's whilst some are ... amazing. Apparently you can set you won crypto up now, using Freelancer and some Indian geeks (nothing against the Indians) for a few thousand dollars, and on the show goes....
But this aside there is some very solid logic behind the advantages of blockchain technology in asset management, financial transactions. The "sytem" at the moment is a complete shambles almost, and no self respecting engineer would own up to it. It lurches from ne disaster to the next, one scandal to the next, more money on the black side, than in the white..so to speak.
A blockchain is a decentralized ledger of all transactions across a peer-to-peer network. Using this technology, participants can confirm transactions without a need for a central clearing authority. Potential applications can include fund transfers, settling trades, voting, and many other issues.
Its taking out the "central clearing authority" that is very appealing.
https://www.pwc.com/us/en/industries/financial-services/fintech/bitcoin-blockchain-cryptocurrency.html
HENRY FORD: The people are naturally conservative. They are more conservative than the financiers. Those who believe that the people are so easily led that they would permit the printing presses to run off money like milk tickets do not understand them. It is the innate conservation of the people that has kept our money good in spite of the fantastic tricks which financiers play-and which they cover up with high technical terms. The people are on the side of sound money. They are so unalterably on the side of sound money that it is a serious question how they would regard the system under which they live, if they once knew what the initiate can do with it.
best
Thank you for taking the time to reply Candid.
Your exit point for CEY is slightly above mine. I’ve got mental sells at 110p / 120p / 130p. I am just about in profit at the moment. Loved the divvies.
Good points re NRR. I agree. Tough spot. I did nearly pull the trigger for a 5% loss (should have now!!). Imo the sale was madness!!
Crypto/ bitcoin is essentially pyramid selling. But I suppose you have to ask what is the value of anything? If you were stuck in the middle of nowhere how much use would bit coin or even a small piece of gold be? Food, something to light a fire , a knife would all have more value. I suppose gold will have some value for use in industry/ electronics etc and even if its value went down greatly I suppose people would still like it for jewellery.
Back to the pyramid selling. I suppose the Dutch tulip bulb "Tulip mania" was similar, in that some people made a lot of money but at the end a lot lost out.
More recently, the selling of debt and the sub prime mortgages. People were selling on bits of paper and people were thinking that the paper was worth what it said on it. It was like writing out cheques when there isnt enough money in the bank.
There is a fair chance that bitcoin will continue to go up and down for a while yet and some people will win and some will lose trading in it. Eventually it will go bust and some people will lose a lot of money on it. It is a game of pass the parcel and at some point the music will stop. Or maybe is it more like a game we used to play as kids , called "catch the bomb", where a ball was thrown round a circle while people counted down. The person who had the ball at the end of the count was "IT"
Here we go again, the old tulip one dragged out- you need to understand how it is mined and works it’s not going away- crypto is here to stay and more and more use it as currency. Why are people so against it? They like paying fx transfer fees, bank fees etc etc nuts
Tell you what Steve ..I have a £20 note in my pocket ..you can have it for £25 and sell it to Gold Gnome for £30
Sorry , I respect you both enormously, but I think you have made a wrong call on this .
Time will tell ..
5years of holding cryptos with a small part of portfolio has massively outperformed anything by a country mile- taken out already 3 times my original investment and still the biggest profit- my only regret, not having bought in with a greater % of my portfolio. Am conservative by nature and my portfolio is diversified- the next highest risk items in my portfolio are gold stocks. I do it plan to increase my % in gold stocks or crypto- happy with my overall risk strategy
*replace do it with don’t
Thanks Steve , I am open to changing my mind ..but name me one investment craze that crypto is experiencing that has lasted the test of time , whether that be tulip bulbs , dot com companies ( they were around for years ! ) or sub prime mortgages ..just one and I might change my mind
Oh wait ...it's different this time...
Me thinks not ..you haven't addressed my energy point .or the slight matter of taxation ..where are the governments going to get their revenues to fund schools , hospitals and road building to name just a few
Honestly , how can you have a revolutionary medium of exchange which has such violent price swings of . Gold is no longer a currency as such , but at least it can be used to make things with ...Gold has been around for centuries , and it too has a limited mine life of extraction (only 20 % remains .I don't buy into crypto..although who knows, maybe I am a dinosaur after all ..my son will agree with you on that one and he is much brighter than I ever was , even before epilepsy harmed my ability to remember my own critical thinking skills .
Just of a matter of interest , how many crypto currencies in existence are there ..I counted about 50 at one point..what will happen to them ?
Massive list just look at the Nasdaq - I’ll open with Amazon
Amazon ?? Amazon arranges the movement of physical goods from A to B and connects supplier C to buyer X for less cost ..it uses real people to do it
Amazon isn't an investment craze and more than Tessla is...they have made rapid gains because they provide a benefit .
Name another.
I think I will work on a new currency called 'dodge coin' It will cut everyone out ..even bitcoin ..
Sorry ..you need to come up with something better than that..of course as always , I might be wrong , I accept that ..
If you think Amazon.com dies and nothing happens to their market cap- you've lost the plot- in the nicest possible way.
It's a .com business!!!
Hi Goldgnome .you spoke a few weeks ago about a bitcoin medal and a gold medal for the Olympics.
Have you changed your mind on that one ?
Me thinks the emperor has no clothes.
Maybe I have Steve .what do you mean and what is its relevance to Bitcoin
Please enlighten me ..sincerely .
I already answered your question.
Let's leave this as agree to disagree, and end this one.
Cheers.
My taxi driver told me yesterday that he is thinking of using his savings from his deposit for a new house to invest in bitcoin so that he can buy a house outright on the profits from it when he sells it in a few months
Mmm...
Good idea Steve...where's the booze !!!
It’s like you’re filming “the big short (BTC version)” live in that taxi Candid haha.