Friday 11 December 2020

Finance Investment Movement 4


Over the last two months, I have been gaining information on the terms and usage of various cryptocurrencies. By now, Bitcoin and Ethereum are probably household names in their unique digital universe. The value volatility of these products can be scary and moved around 15% during these times, whichever direction.

While I remain vested in both cryptos above, I thought there should be further diversification in my portfolio where I can own something different. The fundamental protocol of blockchain technology is designed to be open source and allow other use conditions to be programmed for specific needs. The type of usage is basically unlimited, only limited by what a client wants. That's when transactions can take place and digital coins are issued as payment for proof of work done. One of the industry expected to be greatly disrupted is the banks. The cumbersome nature of wiring process and exorbitant fees have been a bane for the longest time. As an example, just check out how long it takes and how much one has to pay to transfer SGD into USD and from Singapore to Indonesia. But that's where the banks had been able to earn fees for their services. So it came to my attention there is a company offering to replace this service at a faster and cheaper rate. That is a huge blow to the banks' business model!

Soon, it was reported that DBS would be the first bank in Singapore to step officially into the trading of cryptocurrencies. See below.


Therefore, my conclusion is put $200 into the digital coin XRP considering its growing acceptance and position as No 3 by market cap. It's a high risk investment given the uncertain future of where this could go. I expect to fully write this off or gain handsomely by holding for a few years.

Tip: Silverado Merlot 2016, pretty juicy and heavier than usual

No comments:

Post a Comment