We believe that Bitcoin is at the beginning of a parabolic advance. It is probable that prices will make new all-time highs in 2021.To be clear, our quant algorithms do not take big directional bets based on qualitative views;
Many people have asked me “Why do you invest in the crypto and digital assets space?” I believe that investing in digital assets is one of the biggest opportunities in our lifetimes and the digital assets / blockchain ecosystem could have profound impact on the world. Specifically, I have considered investing in digital assets from three perspectives:
Based on my experience of working at global hedge funds like Soros Fund Management and Davidson Kempner, these are the times to make big macro bets. After a big crash, the world tends to change, providing select opportunities in new areas of the markets. One of the biggest opportunities that I see currently is in the digital asset space.
The FT on 5th October 2020 published an article by Stephen Roach (a faculty member at Yale University and the former Morgan Stanley Asia Chair) titled “The End of the Dollar’s Exorbitant Privilege”. Roach thinks a crash in the dollar is likely and it could fall by as much as 35% by the end of 2021.
ETH is the second biggest cryptocurrency based on market capitalisation ($25bn). ETH is a decentralised, open-sourced blockchain that offers smart contracts functionality. ETH has a much wider capability than Bitcoin. For example, it has its own programming language (Solidity) and allows users to build and deploy applications on top of the Ethereum blockchain.
We are bullish on Ethereum because of DeFi. Most of the DeFi projects are built on Ethereum. The paragraphs below outline what DeFi is and are excerpts from a new book called The Infinite Machine by Camila Russo.
At the time of writing, 1 Bitcoin can buy 450 barrels of oil. Perhaps we will all look back in the history books one day and point to April 2020, the month when oil prices turned negative, as the moment when digital gold (Bitcoin) took over from black gold (oil) as the store of value of choice for the millennial generation.