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NBF Update # 2: DOWN 7.56%

Dear Nanay,

Sorry this update took a while! Please pay special attention to the numbers and words that are bolded. I’ll make those the focus of my quick explainers.

As of September 23, 2020,

The NBF value is now at Php 924.42*,a performance of -7.56% so far

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Your portfolio breakdown is:

  • 45.22% Bitcoin (BTC)
  • 19.51% Ethereum (ETH)
  • 13.92% Tether US (USDT)
  • 7.95% Monero (XMR)
  • 3.86% Project Serum (SRM)
  • 2.98% Chainlink (LINK)
  • 2.85% Antiample (XAMP)
  • 1.44% Ravencoin (RVN)
  • 1.01% Bitcoin Cash (BCH)
  • 0.64% Wownero (WOW)
  • 0.56% Aeon (AEON)

Yes, I’ve diversified the fund quite a bit since my last update.

As you know, Bitcoin is not the only cryptocurrency; it’s the first and most widely adopted. What you see above – Ethereum, Chainlink, Monero, etc – are different crypto projects that are built around the same kind of technology as Bitcoin: blockchain.

There are now 11 cryptocurrencies in the NBF. These 11 are digital assets that I think will gain value either in the next few months or the next few decades.

Projects

One way to look at these cryptocurrencies is to see them as different projects. I like the term projects because it reflects the experimentative nature of these cryptocurrencies.

The ideal explanation would be that these cryptocurrency projects are building the future of the internet. But the truth is, we don’t know if that’s true. They’re all inherently newly discovered and created technologies.

Time will tell.

Digital Assets

Much like land and gold, these cryptocurrencies are scarce assets. It definitely requires a shift in mindset though, as assets are usually thought of as something valuable that you can touch and hold.

They’re also non-fungible. The technology ensures, for example, that the Bitcoin you own is yours alone. This is built into the “code” of the cryptocurrencies.

Months vs. Decades

Not all cryptocurrencies are equal. Different factors go into the viability and confidence of success for a crypto project. These range from who the team behind it is, the actual quality of the technology they used (software code), the community support, marketing, luck and more.

As such, I think about the survivability and price performance of these cryptocurrencies in terms of month and decade timelines. It’s a spectrum of some projects being in the “this could perform well in the coming months” end while some projects are nearer the “this will still be around 20 years from now”.

Percentage as a reflection of risk

I do not know where the saying “high risk, high reward” would apply any better than it does here. Keeping to the theme of these cryptocurrencies not being equal, these projects have a varying level or risk to them which makes it somewhat a game of risk management.

That’s what’s at play with the percentages you see. The biggest piece of the NFB pie right now is in Bitcoin because it’s arguably the least risky in the space. More or less, as you go down, the projects approach what I would consider “risky”.

I’ll leave it here for now.

❤️ Gio