This post was published at BitcoinMeister
This post was published at BitcoinMeister
An asymmetric trade is a situation where investing a relatively small amount of money holds the potential of yielding a profit many times the amount of the original sum at risk. In other words, where the risk to reward is skewed massively in the direction of reward.
This took place recently with Bitcoin (BTC). Is this conceptually different from bets made years ago on Microsoft, Cisco, Amazon, or Facebook, which yielded hundreds of percent profit to intrepid investors? Does it have relevance to the possible returns during the next few years for those who hold physical gold and silver?
I would answer “yes” and “yes.”
The current “mania” in the cryptocurrency space – most notably BTC and Ethereum (ETH), along with a few other “app coins” – offers an in-future lesson for a similar setup in the precious metals. (For more on the above topic, see “The Blockchain: A Gold and Silver Launchpad?”
First: This may be the first time ever that an investment “story” has had the ear and investment dollars of a global audience on a simultaneous basis. Individual investors, hedge funds, businesses, and even countries, are sending a torrent of funds, with the effect, to paraphrase Doug Casey’s famous remark, of “trying to push the power of the Hoover Dam through a garden hose.”
This post was published at GoldSeek on Friday, 23 June 2017.
When global financial markets crash, it won’t be just “Trump’s fault” (and perhaps the quants and HFTs who switch from BTFD to STFR ) to keep the heat away from the Fed and central banks for blowing the biggest asset bubble in history: according to the head of the German central bank, Jens Weidmann, another “pre-crash” culprit emerged after he warned that digital currencies such as bitcoin would worsen the next financial crisis.
As the FT reports, speaking in Frankfurt on Wednesday the Bundesbank’s president acknowledged the creation of an official digital currency by a central bank would assure the public that their money was safe. However, he warned that this could come at the expense of private banks’ ability to survive bank runs and financial panics.
As Citigroup’s Hans Lorenzen showed yesterday, as a result of the global liquidity glut, which has pushed conventional assets to all time highs, a tangent has been a scramble for “alternatives” and resulted in the creation and dramatic rise of countless digital currencies such as Bitcoin and Ethereum. Citi effectively blamed the central banks for the cryptocoin phenomenon.
This post was published at Zero Hedge on Jun 14, 2017.
For the first time ever (based on Bloomberg data), Bitcoin is trading at parity with an ounce of gold.
We got close in January…
But now it’s official…
China outflows are accelerating (via the local exchanges), chatter of Mexico being active (as well as Greece, Italy, and France), and the renewed enthusiasm for blockchain (thanks to the ethereum news this week) is all helping drive interest in the virtual currency.
This post was published at Zero Hedge on Mar 2, 2017.
Following last night’s election results, Bitcoin rose sharply in value, in line with gold, while other digital currencies largely failed to provide a safe haven against the extreme spike in markets volatility.
In a recent project, our students @MIIS have looked at the relative valuation of Bitcoin and Ether (cryptocurrency backing Ethereum blockchain platform) highlighting
Fundamental supply and demand drivers for both currencies; and Assessing both currencies in terms of their hedging and safe haven properties
This post was published at True Economics on Thursday, November 10, 2016.
The following video was published by RT on Sep 13, 2016
In this episode of the Keiser Report, Max and Stacy discuss the basket of deplorables and the fistful of dollars that is the toxic soap opera called US Elections 2016 in which the ‘basket of deplorables’ is not the bankers with the fistful of campaign dollars, but the schmuck voter. They look at one deplorable bank, Wells Fargo, which has had to fire 5,300 of their employees for engaging in yet another bout of systemic fraud. In the second half, Max interviews Jaromil of Dyne.org about the latest in cryptocurrency markets and the lessons we might learn from Ethereum and now Monero.