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NBF Update # 1: DOWN 5.5%

Dear Nanay,

Here is the first ever update on your cryptocurrency fund! Let’s refer to this as Nanay’s Bitcoin Fund – “NBF” – for simplicity.

NBF performance

Initial capital: Php 1000*

NBF value as of August 23, 2020:

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*Not the actual fund value

Your portfolio breakdown is currently:

  • 58% Bitcoin (BTC)
  • 42% Philippines pesos (PHP)

Why is it down 5.5% already? 😅

There are 2 reasons. The first has to do with the Coins.ph PHP-BTC exchange rate.

I use Coins.ph to convert Philippine pesos to Bitcoin. They have two PHP-BTC exchange rates at any given time: one for buying BTC and one for selling. Here are their rates at the time of writing:

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Notice the PHP price for buying BTC is more than the price for selling BTC.

Simply put, Coins.ph takes the global market “buy” price of Bitcoin and then slaps on a premium for their service (and probably other factors). So when we buy Bitcoin from Coins.ph, we pay extra.

The second reason is that the (global) price of Bitcoin has gone down since I bought your Bitcoin last August 18, 2020.

The good news is I’ve prepare for potential drops. You’ll notice that 42% of your portfolio is still in PHP. This means I can buy you some more BTC at a lower PHP price.

A decades-long view

I want to be clear that the purpose of this NBF is not to “get rich quick”. It is a bet that the underlying technology of Bitcoin and other cryptocurrencies will continue to progress. A bet that eventually, the technology will be used to power all sorts of everyday financial transactions and experiences. I’ll talk about these developments in future updates.

This won’t happen overnight. But it is happening. Its value, as reflected by a higher price, will just be the side-effect.

The purpose of the NBF is to be an early adopter of the technology, and to potentially be rewarded later on

Q&A

Q: Can I withdraw my Bitcoin/cryptocurrency any time?

A: Yes, we will just have to convert it back to PHP using Coins.ph. Then from there, the PHP can be sent to a bank account.

I’ll leave it here for now.

❤️ Gio