I just came back from the new polyclinic that is within walking distance from my apartment. Yes, the one I mentioned two years ago. Nice to have such a perk, like finally.

They rushed the polyclinic for opening, though. The rest of the property ain’t functional until later this year. In other news, Punggol Digital District made the news last month which is again, fantastic for properties in the area.

For now, I’m sitting tight on my first pot of gold until a really good project comes along. I’m HODL-ing!

  • Polyclinic : 5-mins (walking) distance
  • Mega-childcare (1000-pax) : 5-mins (walking) distance
  • Five coffeeshops /supermarkets : Within 10-mins (walking) distance
  • Punggol MRT + Waterway Point : Within 15-mins (walking) distance / One LRT station away

Absolutely no rush for me since I have stashed enough money in my CPF Ordinary Account to make sure that I have enough to service all the remaining 23 years of payments even if I stop working now.

Massive CPF Post

Yep, I mentioned it in my last blog post on CPF. I actually made a few mistakes – I should have even more in my accounts, and I forgot to include my holdings in CPF Investment Scheme (CPF-IS). Year 2020 looks increasingly like a very reasonable target for me to hit FRS.

CPF has generated a nice looking yearly report for me. Yippe!

Talking about the CPF post, it was a stroke of good luck and timing that I upgraded my web-host to the highest consumer tier last year and pre-paid three years in advance! Google somehow picked up my post and suggested it to their users!

You know when you launched your Chrome browser on Android, for example, and on the default screen when you scroll down, it says “Articles for you”? My post was aggregated by big brother Google and the result was like the flash storms that lashed Singapore.

Half a month worth of traffic descended on my blog in two days! I’m happy to report that my little blog didn’t buckle under the weight.

I have many posts on housing and CPF along the years. Start Here if you want to read about why I bought an affordable first home, took the maximum loan period and chose not to top my CPF at all.

Blockchain vs Traditional Investing

To approach the whole crypto-mania from another angle, think of it as erm .. an crash-course on invesment, but on steroids.

If you have invested anywhere from a few hundred bucks or even more, a short few months in the crypto universe would have taught many valuable lessons for investment in general.

1. Preparedness

Crypto market moves fast. I can’t be waiting for the price alert to ring before I start transferring funds.

This means having access to multiple exchanges. Multiple modes of funding. Likewise for traditional investments in stocks, for example. Try to have more than one brokerage.

2. Alertness

Even when access is readily available, the network conditions may not be ideal. Take Coinbase for example. They have a status for all four of their crypto-pairs.

If there is huge volume being moved on Ethereum for example, it will tell your that performance is degraded (once it took me hours for the transaction to go through) and one would be wise to choose Litecoin, for example, to move capital to a crypto-crypto exchange.

Something that has worked all along cannot be assumed to be working whenever we need it.

3. Allocation & Rebalancing

In my traditional investment portfolio, I have equities and bonds components. Less volatility, less stress. Rebalance to sell high and buy low.

Personally, I feel that this is even important for an environment like cryptocurrencies still in its infancy. Read up on stablecoin. You won’t regret it.

This is the CRypto IndeX (CRIX) for the past 3 months only. During the blood bath over the last weeks, it has dropped approximately 42% from its 6th Jan 2018 peak.

While the market in general (99%) is correlated to Bitcoin and Ethereum, there are a selected few that don’t correlate as well or, in the case of a certain token in the past few days, is inversely to the big brothers. That token is my bond component. I divested a little bit of it (bond) to buy into other tokens/altcoins (equities).

Different environment, but same concepts. This is one area which I feel some traditional investors have have a slight edge.

4. Account Size Matters

To borrow an often quoted sentence from CW8888 : In investing, account size matters.

Imagine having a traditional portfolio size of $100k. Dumping 5% or $5k into cryptocurrencies is not big deal. Yet, a 2000% gain (not unheard of in cryptocurrencies) is huge in absolute terms as it will transform into another $100k.

For a small-time investor with a traditional portfolio size of only $10k, dumping in $500 which gains 2000% would only result in $10k which is relatively much smaller in absolute terms.

Not to forget fees that eat into gains regardless of you’re investing small or huge sums of money, as well as the ability to keep buying into dips.

5. Outside Our Circle Of Competence

A lot of folks I’ve spoken to have not dabbled in crypto-currencies because it way beyond their comfort zone. They find it hard to understand how it works. They find it hard to understand the tech terms e.g. public address, private keys etc. They find it overwhelming to handle so many things, even down to account security and recovery seeds etc.

They are afraid of making mistakes, which ironically is the fundamental to the idea of decentralization in blockchains. By taking away the third party and the reliance of trust in them, power is given back to us and yet, we now fear what we could do wrong because then, there is no one else to blame but ourselves when things go wrong.

Fortune favours the bold. They are those who have not stepped into the realm of traditional investments. There will definitely be those who won’t enter the domain of cryptocurrencies.

Blockchain technology is the next wave of technological evolution. Many industries, with financial being the obvious but not sole target, will definitely be hit hard. It is my opinion that the original PayPal vision, Ripple (2004) vision and Nakamoto’s Bitcoin vision will at least be partially realized in the next few years. The original idea of bringing cryptocurrencies to the masses is too simplistic, but the real change has already begun. Yes, I’m an idealist.

Meanwhile, we have to be vigilant in identifying which part of our portfolio are vulnerable to disruption and pare them down accordingly. We have time, but not much.

6. Try Investing In Ponzi Schemes

For US$5, I invested in a buggy, self-declared ponzi scheme which netted me US$2 in dividends in one day, but all US$7 (and the entire US$1-million pot) ultimately got stolen by an individual(s) who exploited the smart (but actually pretty dumb) contract.

For a few bucks, it was hilarious and enlightening to see human nature being exploited in the harshest manner possible. There were some who made huge returns from the ponzi scheme. There were those made money, got greedy, invested more, and lost everything.

It’s an entirely different perspective when you’re looking in from the outside, versus when you’re on the inside – even when all you’ve at stake is a couple of bucks. Amazing, really.

7. Best Course Fees Paid, Ever

This is why the tiny investment I’ve put into cryptocurrencies is perhaps the best course fees I’ve paid, ever.

For a short period of less than half a year, I’ve re-lived the dot-com boom and bust (a few times), put into practice certain ideas and concepts I’ve only thought about in my head, experienced the euphoria of multi-baggers and (actually-not-so) stressful 40% market dips.

I’ve learned much more than I imagined I would. And once again, my perspective has been significantly widened. Blockchains are perhaps going to be life changing, but nonetheless it will be established as the new norm just like how we take the internet for granted today.

Can’t get enough? Talk to me!