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Oops, we did it again, 500% gains, bulls & bollocks

OOPS, we did it again

Beating bitcoin, 500% gains, just watch out for the bollocks


The Bostoncoin bull run continues


When we first started Bostoncoin in 2016, we had one basic aim: “taking the bite out of Bitcoin”. We knew that diversification is a fundamental cornerstone of investment, whether you are buying crypto, stocks, property, bonds or anything else. Holding one asset is risky; holding several different types of asset is safer.


The younger among you will know that airline stocks plummeted when the 2019 pandemic hit. Those of a certain age will recall that airline stocks also dropped after the 9/11/2001 plane crash.

The terrorist attack and the global pandemic were bad news for many people. If your investment portfolio was heavy in travel stocks, it was bad financial news as well. The good news was, that when airlines and travel went south, other stocks increased eg. Zoom, AfterPay, telcos and grocery chains. This is where diversification really pays off.


The aim with Bostoncoin was to invest into a variety of cryptocurrencies and technology stocks, to take advantage of the blockchain boom, whilst safely diversifying to remove the risk associated with any single asset.


When Bitcoin dropped 60% at the start of the pandemic, we thought Bostoncoin would drop, but by less, due to our diversification. Bostoncoin ended up gaining 50%; a massive outperformance.

Bostoncoin did not aim to outperform Bitcoin. It was just a happy accident.



Oops, we did it again

In the last year, as mainstream crypto adoption continues, Bitcoin prices have risen yet again. Bitcoin is up some 429% over this time last year. Bostoncoin is up a little more, since August 2020, sitting on gains of 502%.


Of course, we cannot guarantee that the diversified Bostoncoin portfolio will always outperform Bitcoin, but we can hope that our diversification strategy continues to provide outstanding returns with less volatility.


Tell your friends that Bostoncoin has been outperforming Bitcoin, not just for a month or a year, but for three years in a row. Who knows, your friends may choose to join the puppy pack, and you may receive some Bostoncoin swag as a reward (see puppy shop to choose your preferred reward).



Warning: Greed, FOMO and TGTBT

As cryptocurrency is now owned by billionaires, large corporations and even some entire countries, the topic of crypto is increasingly noticed in our social media, traditional news sources and social discussions. This notoriety can lead to an increase in scams, Ponzi schemes and other illegal or immoral activity.


Remember that crypto is an unregulated industry, so there are no chargebacks, no reversal of funds if you send to the wrong person, no insurance if an investment goes bad, and nobody who can get your funds back. Crypto is far more lucrative an investment than stocks, and a far more cost-effective funds transfer than banking, but there is zero protection if you get scammed. Be warned.



Online scams increase in proportion with crypto prices

In the last few weeks, we have heard from several clients and friends who have been scammed because they fell for a good-looking ad, clicked on a dodgy text message, or received a suspicious phone call. We have also seen many more of the online scam ads which use different Hollywood or TV celebrities to endorse a “trading system”. These are overwhelmingly fake, and as fast as we report them, two more take their place.


Many scam investment sites appear to have Facebook or Google reviews, but these are fake (spoiler: if you cannot click on the review to see the author’s profile, it is fake).


There are also an increasing number of fake auto-traders, trading bots or automated systems being advertised. Some promise you 1% per day, which sounds conservative, until you do a compound interest calculation and realise that it is impossible.


An investment that gains 1% per day, compounded, gives an annual rate of return over 3678%. Remember, for you to receive an income, someone has to pay it. Yes, you can earn up to 12% interest (in a year), because someone else may be paying 20% interest on a car loan or credit card bill. But who is paying over 100% interest?


Hypothetically, if you could invest $1000 and leave it to compound at 1% per day, within one year, you would have over $36 000. At the end of year two, you would have over $1.4 million. In year three, $53 million, in year four, over $2 billion, and in year five, over $77 billion.


If these types of returns were really possible, do you not think that every billionaire in the world would have one?



Warren Buffett vs Charles Ponzi

The greatest investor of the past century, Warren Buffett, sometimes sees returns of over 100% in a year, but even the Oracle of Omaha cannot sustain returns like this for five years in a row. Every stock market chart you have ever seen has ups and downs; the same for property, bonds and every other investment. Markets are irrational: sometimes too good, sometimes too bad, but they never proceed like clockwork. If anyone claims to deliver 1% per day, run; run far away with both hands over your wallet.


That advice goes double for any crypto which has a multi-level-marketing (MLM) or direct marketing (DM) component. If a platform entices you to bring in several friends by offering you a cut of what they invest, it is not an investment, but a Ponzi scheme.


Imagine if a scheme asks you to put in $1000, and says it will pay you $300 for everyone else you bring in. It sounds great, as you could bring in four people and have made your money back. But if your friend brings in nobody, they only have $700 (allegedly) working for them, and would have to make a return of 50% in order to make their money back. Ponzi schemes seem great on paper, but if you try to withdraw your money, all you will receive is the run-around.


When crypto markets reached all-time highs in 2017-2018, we had several MLM scams, such as BitConnect, USI-Tech and others. They often promised returns of 1% per day. Some made it onto the nightly news or “60 Minutes” for all of the wrong reasons. Bitconnect disappeared with $250 million of users funds, leaving behind empty promises and a half-decent audio meme/catchphrase (turn your speakers DOWN before watching).