Investments still declining

[Livvyliv18]

Are anyones investments showing signs of recovery yet ?My pension has lost a significant amount in the last 3 months and still seems to be going down.
This happened in first lockdown but then started to do really well so I know it can improve.
Im just starting to panic and unsure if I need to see a financial advisor to look at it.
Im not 55 for another 5 years so maybe I don’t need to panic just yet
Any advice /reassurance greatly appreciated

I bought in about 6 months ago put 20k in and the value has reduced by just over 2k since then. I’ve got £30k in a cash ISA as emergency money and 30k in premium bonds. Not sure whether to move more into the stock ISA.

So you want my life story.....I have 8.1 BTC.....the remortgage was £203k. redemption figure for previous mortgage was £76k. This left about 125k to invest which at the time bought me around 5 BTC. I already had sold all my traditional stocks and shares to buy the other 3 BTC. All in all Ive put around 210k into Bitcoin. My average BTC cost is just under 26k.

and yes....before you ask (cos I can see youre really good at maths) I am currently £72k down....but Im not worried in the slightest for all the reasons Ive outlined above....

It’s maybe worth you reading up on inflation if you plan to invest. You got how it works a bit messed up above

how so?

Im guessing youre buying the official line that inflation is solely down to russia / ukraine and brexit are you?

Nothing to do with the BoE inventing money as it suits them to buy Government debt then?

I take it you've heard of quantitative easing? if you invent £130BN out of thin air doesn't that mean that the pound in our pockets is diluted and therefore worth less....where do you think the £130BN goes to? NOt us thats for sure. Were just left with a pound thats probably worth 80% of what it was worth last year.

do you understand inflation?

You implied that the current rate of inflation refers to the coming year; it doesn’t, it’s the last year.

I work in risk in banking, and would be concerned if any of our team were making such bets in one volatile asset, irrespective of how strongly they held their view.

As you know, the market can remain irrational longer than you can remain liquid.

or are you just another in a long line of people who think they know it all........

Well, my bank thinks I know enough to be head of risk, so I hope I do know quite a lot.

What’s your background in finance?

Thats exactly why Bitcoin is such a good investment because people in the traditional banking sector are yet to see or understand the full potential of Bitcoin. You're all so blinkered into thinking that your way is the only way that youre missing a huge opportunity to make a killing. Its fantastic for me, this is the first time in history that private investors have been able to get full access to a new asset class before the institutional investors. Once you all realise that Bitcoin is sound money and a true store of value it'll be too late you'll have completely missed the boat. Great for me though cos I'll be on a beach somewhere sat on a good few million.

You know a lot about a little, Im open minded enough to know a little about a lot....

If youre a risk expert could you please tell me what you feel are the inherent risks of investing in Bitcoin (forget Im all in for a minute cos I agree Im not exactly diversified) but what do you se as the risks given that youre a risk expert

Youve gone all quiet???

Is google taking a bit of time to load up?

Should we just agree you have no credible answer despite being a risk expert?

I'll give you one to start you off....volatility

Yes its volatile....Im £72k down....Im fine with that because as I said I was prepared for that before I put my money in....bitcoin has drawn down on numerous occasions in the past as much as 80% and recovered strongly....

@swifty1974 What makes you confident that as time goes on demand will increase? Why is it a scarce and desirable asset? What does the asset value actually represent? It’s not property that I can derive an income from, it’s not company shares that will generate cash flows and thereby pay me a dividend, it’s not bonds that will pay me a coupon. I’m genuinely curious because I don’t understand where the income will ever come from. Intangible assets with no substance or form need to have future cash flows to support their value. What sits behind BTC to support its value (other than other punters willing to place a bet on a perceived capital value which could be all smoke and mirrors like a pyramid scheme with no substance)?

Im so sick of people using the words pyramid scheme or ponzi scheme or punters placing a bet. Just makes you sound like youre repeating someone else rather than thinking for yourself. Unless you can actually back it up with some facts.
Its scarce because (as I said) there will only ever be 21 million bitcoin (unlike fiat currency which is invented out of thin air every time a government or banking system is in the shit, usually because people like @FemmeNatal have misjudged risk e.g. subprime lending in the US which resulted in the financial crash of 2008) It is desirable because more and more people are adopting it and starting to see its potential as a store of value / asset. Global adoption figures will show you that if you do the research. It has even been adopted as legal tender in some countries. Hedge funds, pension funds and other institutional investors are coming into the space all the time - its clear to see that this is only going one way if youre open minded enough to have a look and be objective.
It is property - digital property. Its classed as an asset upon which you would pay capital gains tax. Sure its not tangible or physical but neither are the units of any fund you might be invested in or your bank account. Theyre all just numbers on a ledger or spreadsheet. What I do know is that it can't be manipulated by anyone and it is held on the worlds most powerful, decentralised, trustless, secure network of over 13000 nodes.
Im not trying to prove anything here, Im just saying its a good investment opportunity and giving you the facts that have lead me to that conclusion. If you want to dismiss it as a scam or youre too narrow minded or lazy to do the research then thats your choice but dont rubbish it before you have. Knock yourself out with the traditional stocks and shares if you like its your loss as far as Im concerned.

I am thinking objectively! That’s why I’m trying to understand it’s underlying value. All I can really come up with is that it’s hoping to become a digital alternative to a £50 note. That piece of paper isn’t worth anything unless treated as legal tender by someone else. As long as BTC becomes accepted in the same way then it could have some value but that still seems like a speculative investment to me. As an aside, I agree on inflation. QE has driven it, coupled with goods shortages caused by Covid. I don’t think Brexit has played much of a part at all.

Scarcity is its real value, much like gold. Its supply is finite. 90% of all the bitcoin that will ever be in existence has already been mined. That's where the long term value will come from. Also some of its value is derived from the cost of mining it, again not unlike gold. Because the reward for mining bitcoin halves every 4 years this also makes it more valuable over time. I get that it may seem a little speculative, if you think I didnt have doubts before I put £210k into it then you'd be very wrong. I did a LOT of research. Im by no means an expert but I learned enough to satisfy myself that I wasnt being stupid.

I’ve really got no interest in helping you out. I already caught you out in a lie, remember?

I dont, but feel free to elaborate

Also I dont remember asking for your help, only that you give your comments a little substance rather than trying to score points. It really just looks as if youre dodging the question. As someone who claims to work "in risk in banking" (whatever that means??) what do you see as the risks to investing in Bitcoin? I know what they are otherwise I wouldn't have invested, Im just keen to see if you can back up your statements with any logical arguments.

Google is very slow today isnt it....it's ok I have all day

You lied about having put £200k into Bitcoin, you hadn’t, and haven’t.

There’s no way any bank would let you remortgage your buy Bitcoin either, so either that’s a lie too, or you committed mortgage fraud by claiming that the money was for something else.

Sorry I should give you a little more time shouldnt I. As "Head of Risk" you must be flat out....