Wednesday, January 10, 2018

Cryptoasset Portfolio

I’d like to provide an update/overview of my blockchain/cryptocurrency/digital asset portfolio. As most regular readers are aware, I have been reading, and sharing a lot of info about my interest in blockchain and cryptocurrency space. I have not been lucky enough to ride this wave early enough to get rich with the immense rise in Bitcoin and other crypto prices, but I am still interested in getting exposure into this space and get some decent returns.

Digital assets/cryptocurrencies provide an extremely unique diversification aspect to a portfolio, in that: they have absolutely no correlation to other asset classes — which is what we desire when we diversify. In this crazy world, where investors fall over themselves to buy negative yielding government bonds; or cheer when companies raise debt in order to pay out dividends; or correlations out-of-whack based on traditional models; there is a gap that is filled by digital assets. This has been a major draw for me to the space and should be on every investor’s radar.

Cryptocurrencies

I started with very small amounts of investment in Aug/Sep of this year. As I mentioned in that post, I opened up positions in Ether (ETH) and Litecoin (LTC). Over the following months, I have also opened a small position in Bitcoin (BTC). These three currencies are part of the core of my cryptoasset portfolio and I have continued to add a small amount on a monthly basis into them.
In addition that, I also have mining contracts with Genesis Mining, where I am part of the pool to mine cryptos. See this post for details. With Genesis Mining, I mine Ether (ETH), Zcash (ZEC) and Monero (XMR). Being a miner is a great way to generate and earn the cryptos and also provide a source of passive income. I recommend this option and if you do decide to use Genesis Mining (the best of the breed available), please consider using my referral code: 7rCM6o. Using this code, both you and I will receive extra hash power on the servers allowing us to grow faster.

Utility Tokens

The other aspect of my cryptoassets potfolio are utility tokens. I am accumulating assets in some projects and the associated utility tokens that I believe in. These projects may or may not succeed, but if they do succeed, I believe the rewards will be amazing.
With Aion-1 (AION), I participated in my first ever ICO/token pre-sale, which is touted by the company (Nuco) as the next generation of blockchain evolution — where Aion would allow various different types of blockchains to inter-communicate automagically.
Second utility token I bought was Basic Attention Token (BAT), a token that monetizes attention using the Brave browser as a platform. I believe that if Brave is able to disrupt advertising revenue from megacaps like Google and Facebook and capture even a minuscule part of the market, the rewards are extremely lucrative.
The last token I bought was IOTA (IOTA) — which is a token for Internet of Things. This one is unique in that the system does not use a blockchain and gone with a completely different architecture, where it uses directed acyclic graphs. The transactions have no fees and is seeing some immense interest from various megacap companies as well as some central bankers.

Stocks (Special Mention)

While, I do not consider this to be a cryptoasset portfolio composition, there is one company that deserves a special mention as it relies heavily on the crypto space. I own shares in Hive Blockchain Technologies (HIVE.V), which is a company formed between the partnership of Fiore Group and Genesis Mining. I bought this stock in September right after IPO and sold half my position in October after a 200% runup. I have decided to sit back and watch where this company goes as I have taken all the risk out of this investment.

Summary

Overall, the various cryptoassets described above are distributed as shown below. I have been lucky to pick up utility tokens at good prices, which have had better returns than the currency tokens and as a result form a bigger part of my overall cryptoasset portfolio.
This is not a large portfolio by any measure and I am looking forward to growing these investments in the coming months and years and benefit from the move to next round of technological development.
You can read all my blockchain/cryptoasset related posts here.
Full Disclosure: Long all cryptos, tokens & HIVE.V mentioned above.

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