Categories
General

2019: Year in Review

Every year, I do a year in review, with highlights and lowlights and a summary so this is my year in review for 2019.

Highlights

-I found a great job at a great company with great co-workers at Kong
-Had a great time in Korea this year, met all my friends again, made a Korean gf
-Went on a nice cruise with my family this year

Lowlights

-Still recovering from all the financial issues I suffered last year mainly losing the majority of my life savings because of the QuadrigaCX crypto exchange collapse
-More difficult to make new friends in Vancouver than I expected

Summary

I don’t have a whole lot of updates for this year, because this year was pretty much a recovery year from the disaster that was last year. Last year took away my San Francisco apartment, my life savings, and most of my best friends away from me. I started out this year with almost no savings, no house, unemployed and with no friends in Vancouver.

The start to this year was really rough. I was told that the exchange that I used last year to transfer my savings over to Canada, QuadrigaCX had gone under with over $215M CAD owing to creditors once the CEO died under mysterious circumstances in India. The rest of this year was basically waiting for updates from the ongoing lawsuit – Ernst&Young being the bankruptcy trustee and Miller Thomson being the lawyers.

So far they are still processing claims, and have been doing so for the last 4 months with no updates to us creditors so far. They have roughly $33M + $12M (the CEO and his widow enriched themselves by purchasing Nova Scotia property so there’s extra assets here) for us but roughly $7M I estimate will be in legal fees paid to EY and MT. After that there’s roughly $38M left in the pot for us creditors, depending on how much people claim. There’s $215M in total claims outstanding but me and several other creditors theorize that at least half of those claims are not real or left on the exchange by money launderers. And then there’s the CRA (Canada’s IRS) waiting to take even more money from us.
So I calculated it and I think roughly we’ll get back anywhere from 15% (worst case scenario) to 40% (best case)  with 25-30% being the most likely percentage we’ll get back. I have no idea how long this process will take but hopefully sometime next year we’ll get it back.

So that being the backdrop, a hammer that was dropped on me at the beginning of the year, you can see the rest of the year takes a backseat to this whole lawsuit thing.
I did manage to luck out finding a great SF company to work for (Kong Inc) that I could work remotely for, and everything about that company I liked better than my previous company. My manager, coworkers, the type of work I was doing etc I learned way more in 6 months than I did in a whole 1.5years at my previous company.
And I did manage to have some time to travel to Korea for a bit and that was a really great experience, much better than last year (God really had it in for me last year), got to meet all my friends again and dated a bunch of girls, etc it really transported me back to the days when I lived there (2015-2016). I also got a chance to go on a cruise with my family (to the Bahamas) which I haven’t traveled with since late 2013 and especially getting to see my brother again is nice since he’s usually busy and very isolated since he lives in Winnipeg.

But once I got back to Vancouver, it became lonely again, and I think it might be just because its hard in general to make friends once you’re out of school but even harder when you work from home and have no co-workers to really talk to. At least in San Francisco I still have one really good friend to hang out with. In Vancouver I didn’t know anyone. I tried going to some language exchange meetups but the people I meet there are always very transient, they change every time so its hard to meet someone stable.
I did get into a relationship with a girl I met in Korea but its long distance and that’s always really difficult to maintain. I hope I can though, because she seems much more stable than my ex gf was, and much more mature (she’s 3 years older than me). On top of that, I don’t really like my landlord and am looking to find a new place to move to next year. He is incredibly strict with his house rules and seems always ready to fine me since he blames me for  everything that happens around the house (I have 6-7 housemates) and raised my rent by $100 because he said I ‘stayed at home too much thus using more electricity’ which is ridiculous. 

So yeah this year is mostly a recovery year, but after the initial shock that happened early this year and lucking out into finding a good company to work for, the rest of the year went reasonably smoothly. Let’s hope that next year will continue to go smoothly and hopefully I’ll have some luck finally with crypto (I still have some reserves but its down a whopping 80% and I missed a good chance to sell it in the summer, hopefully it will go back up next year), and with the lawsuit as well (oh please don’t let that $215M in claims be a real number, hopefully most of those big claims are fake).

Otherwise I’m just slowly saving up money again trying to afford a place in Vancouver eventually. This process might be considerably faster or slower depending on how much crypto goes up/down next year and how much/when money I get back from the QuadrigaCX lawsuit…

 

Categories
General

Looks like I’ve just lost all my money …

So it appears QuadrigaCX, the Canadian crypto exchange I used to transfer my money from the US to Canada, is doing really shady things with that money. Not only is my money taking 3+ months to arrive so far but every time I ask support they have the same excuse and just asking me to wait another 2 weeks every time.

Now recently they announced their CEO passed away last month under mysterious circumstances in India, and haven’t been giving any updates since. I have over $500k+ CAD stuck in that account. They aren’t letting anyone withdraw anything anymore or cancel the withdrawals that went out before. This really isn’t good. As if losing $170k in crypto last year wasn’t enough – this time it just feels unfair.

At least last year it was definitely my fault for taking on so much risk – taking out 3 loans, investing in shady ICO scams and masternode scams – that’s all my fault for taking on so much risk, but this is just crazy. QuadrigaCX operated for over 5 years as Canada’s (formerly before this fiasco) biggest crypto exchange. I already had an account with them before in 2017 so I just decided to use them to move my US money over back to Canada – I thought I was being clever avoiding the bank’s commission fees and getting a 6% premium on top of that – and now as it turns out, I might have just lost the rest of my money too. For picking the wrong exchange and for trying to get my money back to Canada after selling my SF apartment. Unbelievably, my luck keeps getting worse.

This is so unfair. I wasn’t even trying to invest in anything this time! Now on top of that, I am also actively interviewing for jobs around Seattle as well – so lately I’ve been quite stressed.

Imagine having all your life savings tied up in a shady crypto exchange that might go bankrupt at anytime – and having to focus on doing coding exercises on top of that. And then I’ll have to deal with getting another visa after that which is always a hassle.

I really hope that I get my money back, hoping and praying everyday that it isn’t a scam. Everyday I go on reddit and twitter to check if there’s any updates from QuadrigaCX and so far nothing. I wonder if I’ll have to get a lawyer and contact the RCMP about this eventually. Hope it doesn’t come to that.

Categories
Business Music

Thoughts on Bitcoin and making money

I’ve been reading about Bitcoin a lot lately. It’s a very interesting concept… its a crypto-currency, its value is only worth as much as how much people are willing to accept it. The more Bitcoin is used, the more value it has and the more accepted it becomes. There are two ways to get Bitcoin: Mine them, or buy it at an exchange. Online Bitcoin exchanges post the currency value which fluctuates day to day, but Mt.Gox seems to be the biggest. Mining them is very interesting.

When you mine Bitcoins, you need a powerful computer that can compute the answer using the bitcoin algorithm to a computer problem. Once you get the answer, a block of bitcoins, depending on difficulty and time, is awarded to you. The more bitcoins that are out there, the higher the difficulty, the higher the difficulty, the less bitcoins you will receive relative to the time the computer spends on the problem.

So in 2011, Bitcoins were dirt cheap because not many people knew about them, and people were using their home computers and GPUs to mine them. Now though, more people know about Bitcoins, and the value of a Bitcoin currently is around $135. And specialized computers called ASICs are being developed to mine them. These manufacturers like Butterfly Labs and Cointerra are building computers designed specifically for Bitcoin mining, with up to 2 Terahashes per second.

So how much money would you make buying one of these machines, and start using them Jan 2014 (since they ship in fall 2013)? Well, the thing is with Bitcoin, its very volatile. How much its worth depends on how much people trust it. And the advantage of time. If someone had started investing in Bitcoin last year for example, when it was around $20, they would have made a lot of return, since now its $135 and it was even as high as $260 at one point. Therefore people who started mining earlier, even at the beginning of this year, would have alot of advantage and would have made alot of money. But now though, its kind of late to start. There’s comparison charts all over the web like this one.

The thing is, once these 500+ GH/s ASICs start shipping, the difficulty is going to increase massively, and its going to be much harder to get a return on investment. So, I would not invest in a miner now for that reason. At the beginning of this year, probably. But not now. But it might be worthwhile to purchase bitcoin currency now. If you think people will continue to accept Bitcoin at the rate it is now, then its worthwhile to purchase some, even at $135 a piece. The reason is because once more and more people start mining, each individual Bitcoin is going to be harder to get, making the supply of Bitcoin ever lower (actually the total circulation is capped at 21 million). Thus, because of lower supply and holding demand constant or higher, you can expect the value of Bitcoin to be higher in the future.

This brings me to a talk about money. I’m not the kind of person to care too much about money. Last year, I had $200,000 cash in the bank from my parents to help me finance my house, and in addition to my Intrade earnings, I could’ve used that money on various investments, but I chose to be a good son and not risk that money anywhere. If I had heard about Bitcoin back then and invested in it, at $20/bitcoin in Dec 2012, and $200k, that would be worth over $1.3m today. Or I could’ve invested in stocks/options like TSLA/PCLN/LNKD/NFLX/QIHU which have had monstrous returns this year. Anyways, the point is there’s always opportunities to make money, and I’m not really concerned about it too much. As long as I keep steady on my current job and do reasonable investments on properties and stocks, then I have a reasonably good chance of becoming a millionaire in the near future (take a look at this page).

In fact I have two stock option strategies to share: the first is called Straddle. Straddling a stock basically means you are betting that the stock will move in either direction. So you buy both a put and a call option on the same stock. If the stock moves in either direction, you hope that the return is higher than the premium you paid for both the put and the call. And that’s it.. pretty low risk option strategy.

The second is called Naked Put. Some people may say this is a high risk option strategy because you are uncovered, but the payoff graph is the exact same as a Covered Call, and its even better than that: With a naked put, you can be in a win-win. If you see a stock you really like, but the price is too high, sell a put contract on it, at the strike price you would like to buy it at. You get the premium for the put no matter what; and if the stock does go down to that price, you are obligated to purchase it; but that’s what you would have wanted anyway!! So I see naked puts as a win-win strategy.

Anyways, there always opportunities to make money, and so I’m not too worried if I miss out on some of them; I realize there is always more in the future. Did you bet on Obama winning the election on Intrade last year? Did you invest in Bitcoin in 2011? Did you invest in any stock in 2009? Did you invest in Shanghai/Seoul properties in the 1990s? Did you invest in the US housing market in 2010? Did you buy AAPL stock in 1990s? Did you buy call options on TSLA at the beginning of this year? Working part time on IT consulting? Buying iPhones in US and selling them in China for a markup? Stocking up on gold in 2008? How about writing a book about how to make money? How about selling an app in the App Store that links you to your book about how to make money? All of these could’ve net you a massive profit. But point is, its always about timing, and available capital. Its hard to estimate timing, but as long as you take the risk, there is always opportunity to make money and get rich. And the more money you have, the more money you can afford to risk, and thus the more you can make. That’s what I’ve learned through all my financial knowledge.

Videos:
I uploaded some videos recently, including reviews of the Ouya and Wikipad and cover of Bruno Mars:

httpv://www.youtube.com/watch?v=BcGnw03UZaw

httpv://www.youtube.com/watch?v=fjDkSEL4Zwg

httpv://www.youtube.com/watch?v=RrXoTleC344