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Read this about Bitcoin Mining, the network's block rewards & issuance rate.
I did these calculations which took some time. A retweet would be much appreciatedđ
90% of the Total BTC has been mined and the last Bitcoin is expected to be mined in the year 2140.
I did these calculations which took some time. A retweet would be much appreciatedđ
90% of the Total BTC has been mined and the last Bitcoin is expected to be mined in the year 2140.
What is Bitcoin Mining?
Bitcoin mining is how new coins come in circulation. It's also how our transaction on the BTC network are verified.
As the Bitcoin blockchain uses the Proof-of-Work consensus algorithm, Mining is done by solving a complex computational math problem.
Bitcoin mining is how new coins come in circulation. It's also how our transaction on the BTC network are verified.
As the Bitcoin blockchain uses the Proof-of-Work consensus algorithm, Mining is done by solving a complex computational math problem.
No advanced math is really involved. What miners are actually doing is trying to be the first miner to come up with a 64-digit hexadecimal number (a "hash") that is less than or equal to the target hash.
It's basically guesswork.
It's hard as there's over a trillion guesses.
It's basically guesswork.
It's hard as there's over a trillion guesses.
Did you know there's a measurement that can predict whether a business will go bankrupt or not in the next 2 years?
It's called Altmanâs Z-score Model.
The lower the Z-score, the higher the odds that a company is heading for bankruptcy.
A Z-score that is lower than 1.8 means
It's called Altmanâs Z-score Model.
The lower the Z-score, the higher the odds that a company is heading for bankruptcy.
A Z-score that is lower than 1.8 means
that the company is in financial distress and has a high probability of bankrupcy.
A score of 3 and over means the company is in a safe zone and is unlikely to file.
A score between 1.8 & 3 means the company is in a grey area and with a moderate chance of filing for bankruptcy.
A score of 3 and over means the company is in a safe zone and is unlikely to file.
A score between 1.8 & 3 means the company is in a grey area and with a moderate chance of filing for bankruptcy.
Confusing but here's the formulađ
Îś = 1.2A + 1.4B + 3.3C + 0.6D + 1.0E
Îś = 1.2A + 1.4B + 3.3C + 0.6D + 1.0E
A quick thread on Diversification.
Diversification is a strategy allowing investors to manage risk by spreading their money across different investments.
Investors should have some money allocated to safety assets like cash and bonds in addition to riskier assets like stocks.
Diversification is a strategy allowing investors to manage risk by spreading their money across different investments.
Investors should have some money allocated to safety assets like cash and bonds in addition to riskier assets like stocks.
Any investor looking for a quick and easy way to help manage risk and potentially boost returns on their portfolio, should take a moment to consider how diversification could work in their portfolio.
Even a fairly aggressive investor likely should still have some cash on the side, whether that's for short-term spending or emergencies, or to deploy for investing in the future.
Likewise, when it comes to one's stock holdings, how well diversified is the portfolio?
Likewise, when it comes to one's stock holdings, how well diversified is the portfolio?
A quick thread on Asset Allocation
Asset Allocation is an essential component of anyone's investment journey!
Fancy translation; asset allocation is the breakdown of different investments in the categories known as asset classes. Stocks, bonds, cash are different asset classes.
Asset Allocation is an essential component of anyone's investment journey!
Fancy translation; asset allocation is the breakdown of different investments in the categories known as asset classes. Stocks, bonds, cash are different asset classes.
Within each asset class, there are more breakdowns that categorize each investment like market capitalization, sectors, geographical locations etc. etc.
But in practicality, asset allocation is to diversify depending on an investor's risk tolerance.
But in practicality, asset allocation is to diversify depending on an investor's risk tolerance.
Each asset class has anticipated risk and return based on historical averages.
Based on how much risk an investor is willing to take, a portfolio can be broken down within several categories to provide diversification and balance.
Based on how much risk an investor is willing to take, a portfolio can be broken down within several categories to provide diversification and balance.
Quick thread on Price-to-Rent Ratio?
The price-to-rent ratio can be helpful for gauging whether or not an area is âfairlyâ priced, or if itâs in bubble territory.
To determine the price-to-rent ratio in a given area, divide the median home price by the median annual rent.
The price-to-rent ratio can be helpful for gauging whether or not an area is âfairlyâ priced, or if itâs in bubble territory.
To determine the price-to-rent ratio in a given area, divide the median home price by the median annual rent.
Generally, a price-to-rent ratio higher than 21 means itâs cheaper to rent in that area.
As of 2019, the price-to-rent ratio in San Francisco is over 50, the highest in the US.
For every $1,000 youâd spend in rent, youâd have to pay $601,362 to buy something comparable.
As of 2019, the price-to-rent ratio in San Francisco is over 50, the highest in the US.
For every $1,000 youâd spend in rent, youâd have to pay $601,362 to buy something comparable.
e.g. a place that rents for $4,000/mo. would cost roughly $2.4M to buy.
At that rate, itâs cheaper to rent than to own, as the estimated monthly mortgage payment would be around $10,000.
At that rate, itâs cheaper to rent than to own, as the estimated monthly mortgage payment would be around $10,000.
What is value investing?
Value investing is a long-term investment strategy used by investors to seek out stocks that are trading for less than their intrinsic or book value.
Value investing is a long-term investment strategy used by investors to seek out stocks that are trading for less than their intrinsic or book value.
Just like online shoppers keep tabs on their favourite items and buy them when they go on sale, value investors track down stocks they think are being undervalued by the stock market.
Investors analyse and use various metrics to find the right valuation of the stock.
Investors analyse and use various metrics to find the right valuation of the stock.
They believe the market overreacts to good and bad news that result in stock price movements disproportionate to the companyâs long-term fundamentals.
This offers them an opportunity to buy stocks at a discounted rate.
This offers them an opportunity to buy stocks at a discounted rate.
Mindset Moment đ§
Remember, it's not a loss until you sell.
With technology making it easy to check balances and stay up to date with stock prices, it can become a habit to check investment accounts regularly.
You don't need to keep looking and ruining your mental health.
Remember, it's not a loss until you sell.
With technology making it easy to check balances and stay up to date with stock prices, it can become a habit to check investment accounts regularly.
You don't need to keep looking and ruining your mental health.
Between online banking, home buying apps, and budgeting tools, having quick and easy access to your financial information is great from a monitoring standpoint. However, the reality is if you're not selling, it may not matter.
#mentalhealth #MentalHealthAwareness #ShadowInvestor
#mentalhealth #MentalHealthAwareness #ShadowInvestor
@threadreaderapp unroll
Thread on Short Selling.
Short selling is what investors do when they want to bet against a stock.
Itâs the opposite of a long position (where they bet the value of the stock to go up over time).
So how do you make money on a failing company?
Take this fictitious example:
Short selling is what investors do when they want to bet against a stock.
Itâs the opposite of a long position (where they bet the value of the stock to go up over time).
So how do you make money on a failing company?
Take this fictitious example:
Shadow thinks the value of drug company ShadowPharma is overinflated, and that it will soon report that it's trials for its new drug were a failure.
Shadow approaches institutional investor Shadow Capital, which owns ShadowPharma stock to borrow 1 million of their shares.
Shadow approaches institutional investor Shadow Capital, which owns ShadowPharma stock to borrow 1 million of their shares.
Shadow Capital agrees, and charges Shadow a monthly fee of $5 million until he returns the shares.
Shadow takes ShadowPharma's shares and immediately sells them for the going rate of $100 each, depositing $100 million in his account.
Shadow takes ShadowPharma's shares and immediately sells them for the going rate of $100 each, depositing $100 million in his account.
Quick thread on why TIME IN THE MARKET is better than TIMING THE MARKET?
Data from JP Morgan's Asset Management shows from January 2nd, 2001 to December 31st, 2020, for the S&P500, seven of the 10 best days occurred within two weeks of the 10 worst days.
Let me repeat that.
Data from JP Morgan's Asset Management shows from January 2nd, 2001 to December 31st, 2020, for the S&P500, seven of the 10 best days occurred within two weeks of the 10 worst days.
Let me repeat that.
Seven of the 10 best days are current within two weeks of the 10 worst days.
So what do realise from this data?
Not only could you not time the market, but there's a good chance that if you try to time the market, you may miss those good days.
So what do realise from this data?
Not only could you not time the market, but there's a good chance that if you try to time the market, you may miss those good days.
In times of panic or anxiety, sometimes investors may rush to sell.
ShadowInvestor⢠encourages investors NOT to get out of the market, STAY INVESTED in the market.
Because if we go back to the stat & you go back to January 2nd, 2001 through year-end 2020,
ShadowInvestor⢠encourages investors NOT to get out of the market, STAY INVESTED in the market.
Because if we go back to the stat & you go back to January 2nd, 2001 through year-end 2020,
Mindset Moment đ§
Sheesh, If youâve been an active investor in the markets over the last 6 months, you donât need ShadowInvestor⢠to tell you what a hell of a ride itâs been.
Fears of rising rates and a slowing economy has completely flipped the switch on investor sentiment.
Sheesh, If youâve been an active investor in the markets over the last 6 months, you donât need ShadowInvestor⢠to tell you what a hell of a ride itâs been.
Fears of rising rates and a slowing economy has completely flipped the switch on investor sentiment.
And thatâs triggered a sell-off thatâs seen the average tech stock fall by 37%.
We'll focus on tech for today but markets in general are looking heartbreaking & this could apply to you.
Pandemic favourites like Zoom & Peleton are down about ~80% and Australian tech about ~90%đ¤Ż
We'll focus on tech for today but markets in general are looking heartbreaking & this could apply to you.
Pandemic favourites like Zoom & Peleton are down about ~80% and Australian tech about ~90%đ¤Ż
But despite the recent declines itâs easy to forget just how long this tech bull run has been going for.
Take e.g. ARKK, The famous tech ETF from @CathieDWood is down ~50% since this time last year.
But despite this, the ETF is still up ~40% from 2yrs ago (AKA pandemic).
Take e.g. ARKK, The famous tech ETF from @CathieDWood is down ~50% since this time last year.
But despite this, the ETF is still up ~40% from 2yrs ago (AKA pandemic).
