Page 12 - DIY Investor Magazine February 2018

My feelings about crypto haven’t changed since 2013, and I still think it will end in tears for many people; however, I’m now starting to wonder whether it may be possible to profit from the eventual collapse? Futures trading now allows you to bet against the currency, which might be an option, but I’ve been looking at potentially shorting businesses that are benefiting from the crypto-boom.
In particular graphics card producers such as US- company NVIDIA have seen sales increase in recent years as people are buying their product specifically to ‘mine’ cryptocurrencies.
The cards people are buying are very high end (expensive) and if/when this blows over there could be a
I’M NOW STARTING TO WONDER WHETHER IT MAY BE POSSIBLE TO PROFIT FROM THE EVENTUAL COLLAPSE (OF CRYPTOCURRENCIES)?
large oversupply of said cards for some years. NVIDIA’s share price has gone up 10 fold over the last couple of years, it might well fall back if sales decline.
I’ve made initial enquiries into Jan 2020 ‘out of the money’ put options, and this could be a viable way
of betting against the collapse whilst capping the downside risk; NB I don’t generally do this kind of thing and am a total novice, so please don’t try this at home unless you know what you’re doing!
That concludes my investment year; many thanks to you all for reading, and in particular thanks to all the Twitterati DIY investors who continue to be a great source of information and knowledge. You know who you are!
If you have any questions please feel free to comment on my blog or alternatively contact me via
Twitter @mattbird55
Have a great 2018! Cheers,
Matt.
DIY Investor Magazine | Jan 2018 12