Irish Financial Independence & Personal Finance Podcast

May 2021 Portfolio Update

Monday 7th June 2021

A Bitcoin Update

I have mentioned a few times on the podcast that I was holding 1% of my portfolio as Bitcoin. I decided to sell my Bitcoin in early May. I got a little bit lucky, I sold out when Bitcoin was just over $50k, and it since has dropped in value. I made a small loss selling out in May, but I was up overall for the year.

There were several reasons for my decision, but my main reason is that I think fundamentally Bitcoin is a Ponzi-Scheme.

- Stocks and Shares are backed by an entity that produces profit.
- Property is backed by something physical that can produce profit through renting or leasing.
- Even Gold - while it doesn’t do anything - has a value in the Jewellery industry.

The big issue with Bitcoin, is it is purely speculative - and it isn’t backed by anything. Furthermore, Bitcoin is actually losing value everytime a translation takes place. This is because of the miners fees that occur at every transaction.

This, on top of the major environmental concerns - was reason enough for me to happily sell out. I moved the money into paying down the loan on the rental property.

I should thank Ben from the Limerick FI MeetUp group for allowing me to finally see common sense about Bitcoin and letting go of my FOMO feelings about cryptocurrency. This is the article he shared which goes into a LOT of detail about this - far more than I can cover - I would highly recommend you read it if you are thinking about buying cryptocurrency.

A final note here - if you fancy a punt, and you have money spare that you can gamble, then I wouldn’t be against someone buying cryptocurrency for that reason - but I certainly wouldn’t be treating it as an investment, nor assuming there will be any long term gain from holding it. I would challenge people however to say given the climate crisis that is going on at the moment, is it really worth being part of something that produces the same amount of electricity each year as Poland!

I will stick to my long term view and just keep buying into equities and property - yes it is boring - but after some of the bad experiences I have had between Forex Scams, Peer to Peer Lending Scams and others, I welcome the calmness of cost averaging and owning a rental property!

Let’s jump over to the numbers:

Portfolio Report

Portfolio Summary (as at 31th May 2021)
Opening Balance €151,277.19
New Contributions €4,500.00
Portfolio Capital Gain + Income €291.26
Closing Balance €156,068.45

Monthly Portfolio Growth Report

Monthly Portfolio Growth Report
Capital Gain + Dividend Income from Equities -€212.05
Real Estate Income €700.10
Peer to Peer Lending Income €4.73
Cryptocurrency Capital Gain -€201.52
Total Change €291.26

Portfolio Breakdown

The table below shows the breakdown of my portfolio into the various asset classes:

Portfolio Asset Breakdown (as at 31st May 2021)
Equities €79,554.94 50.97%
Real Estate €68,940.92 44.17%
Peer to Peer Lending €1,153.01 0.74%
Cash €6,419.58 4.11%
Total €156,068.45 100.00%

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