Paul Tudor Jones Prefers Crypto Over Gold Which is “Clearly Winning The Race”

Hedge Fund Manager, Paul Tudor Jones, Prefers Crypto Over Gold Which is “Clearly Winning The Race”

Much like the crypto community, the billionaire investor said he would rather own Bitcoin itself than the futures-tied ETF but said investors should “take great comfort” that it’s approved by the SEC.

Billionaire investor Paul Tudor Jones sees cryptocurrency as a hedge against inflation and said, “It would be my preferred one over gold at the moment.”

The founder of hedge fund Tudor Investment Corp. said in an interview on CNBC that he prefers crypto assets over traditional hedges like gold; as such, he has “crypto in single digits in my portfolio.”

Back in June, Jones had said that Bitcoin is a great way to protect his wealth over time, calling it the world’s biggest store of wealth.

“We’re moving into an increasingly digitized world.” “Clearly there’s a place for crypto, and clearly it’s winning the race against gold at the moment.”

The precious metal, which is a traditional safe-haven asset is only up 3.08% this month but down 5.92% this year so far. Bitcoin, meanwhile, has spiked 50% in October to hit a new all-time high on Wednesday at $67,000 and recorded 126% gains YTD.

Jones also called cryptocurrency “the single biggest threat to financial markets.”

The latest rally came amidst the launch of the first US bitcoin-linked exchange-traded fund. In just two days, ProShares Bitcoin Strategy ETF has amassed over $1 billion in assets.

But much like the crypto community, Jones said he would rather own Bitcoin itself than the futures-tied ETF. Still, the ETF will do just fine, said Jones adding, investors should “take great comfort” that it’s been approved by the U.S. Securities and Exchange Commission (SEC).

The crypto bull also talked about being worried about inflation which he said poses a major threat to the US financial markets and the recovering economy.

To Tudor Jones, inflation is not transitory, as Federal Reserve Chairman Jerome Powell has been saying. Last week, data from the Labor Department showed that the consumer price index rose 0.4% from August and 5.4% from the prior year, the largest annual gain since 2008.

But Fed economists still predict inflation to be back under 2% next year, according to the minutes from last month’s Federal Open Market Committee (FOMC).

This is “absolute death” for the traditional portfolio structure of 60% stocks and 40% bonds, said Tudor Jones, adding, the Fed’s current monetary policy is the most inappropriate and that Powell may not be the best person to run the central bank right now.

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Author: AnTy

Insurance Giant Sees Bitcoin As A “Store Of Value” And A “Potential For Significant Price Appreciation”

Insurance Giant Sees Bitcoin As A “Store Of Value” And A “Potential For Significant Price Appreciation”

MassMutual CIO says it would take multiple market cycles to determine if Bitcoin serves as an inflation hedge. Meanwhile, Billionaire private equity investor Orlando Bravo asks, “How could you not love crypto?”

Billionaire private equity investor Orlando Bravo revealed that he is a Bitcoiner and is “very bullish” on cryptocurrency.

“How could you not love crypto?” said Bravo at this week’s Delivering Alpha conference on CNBC.

Bravo is the founder of Thoma Bravo and has a net worth of $6.3 billion. His firm has invested in the crypto derivatives platform FTX. On Wednesday, he shared that he personally owns Bitcoin.

“Crypto is just a great system. It’s frictionless. It’s decentralized. And young people want their own financial system. So it is here to stay.”

“For me, it’s pretty simple. More people are going to use it in the future than today, and it’s going to be more established. Institutions are just beginning to go there, and once that happens, I think it will increase significantly over the years. I’m very bullish.”

According to Bravo, regardless of what protocol or system one is building on, the underlying blockchain technology can be “very powerful” and “provide better use cases than data-based software.”

New And Still Undergoing Price Discovery

Much like Bravo, Chief Investment Officer of MassMutual, an insurance company with $616 billion assets under management, is bullish on the future of cryptocurrencies.

In a LinkedIn post titled “Bitcoin and beyond: evolving for the digital world of tomorrow,” published on Thursday, ​​Tim Corbett talked about Bitcoin has the potential of being a store of value over the long term.

MassMutual first ventured into cryptocurrency last year with an investment in Bitcoin for its General Investment Account (GIA).

“We have come to believe that cryptocurrency and the blockchain ecosystem have the potential for significant growth and transformation across our industry, amongst others, in the years to come,” as such the company found it imperative to invest in crypto itself and lay the groundwork for ways to incorporate it into their business.

Corbett further wrote that they have come to “view bitcoin as a potential store of value over the long-term.”

According to him, Bitcoin may also serve as a “digital gold,” thanks to its unique characteristics including digital scarcity, known supply growth, transfer characteristics, and hard cap, “with the potential for significant price appreciation.”

Overall, he says the “asset class is new and still undergoing price discovery,” with significant uncertainty, risk, and volatility, which is expected to decrease as more institutions join in but added that,

“it will take multiple market cycles before we have robust data to further describe the characteristics of the investment, such as correlations to other asset classes or whether it will serve as an inflation hedge.”

Still, Bitcoin is not untested, and while the regulatory environment is still developing, Corbett says thoughtful and prudent regulation will accelerate the industry while protecting investors.

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Author: AnTy

Bitcoin ‘Early’ in the ‘Adoption Curve’ and Has ‘Significant Upside Potential’ as Digital Gold

Bitcoin ‘Early’ in the ‘Adoption Curve’ and Has ‘Significant Upside Potential’ as Digital Gold, says Miller Opportunity Trust in SEC Filing

Billionaire manager Bill Miller invested in GBTC when it was at a steep discount as it provided “additional upside potential.” Also bought $21.5 mln of COIN shares, calling it “quite a steal.”

Miller Opportunity Trust, a fund run by billionaire manager Bill Miller talked about its Bitcoin investment in the latest filing with the US Securities and Exchange Commission (SEC).

As we reported about a week ago, the fund manager disclosed exposure to the largest cryptocurrency through Grayscale’s Bitcoin Trust (GBTC) via Miller Opportunity Trust. The Trust owns 1.5 million shares of GBTC valued at roughly $44.72 million.

GBTC is currently trading at a 13% discount to the underlying asset Bitcoin, which is currently trading at $49,950, after soaring past $51,000 on Friday.

In the SEC filing, Miller Opportunity Trust wrote that after being observers of Bitcoin for a long time, finally, in the second quarter of 2021, they got the approval to invest in GBTC, an open-ended grantor trust, fully invested in the leading cryptocurrency.

It further noted that in the quarter, as bitcoin fell more than 50%, the trust traded at one of its larger discounts, 21.23% on May 14, “providing additional upside potential.”

“We believe Bitcoin has significant upside potential as a form of “digital gold.” With gold’s market capitalization greater than $11T, Bitcoin’s current cap close to $600B would have a long way to go to catch up. We are early in a continuing adoption curve, and Bitcoin will be volatile, but we think the risk-reward is attractive,” reads the document.

Meanwhile, it also noted that there is relatively little use of bitcoin in the retail and commercial marketplace compared to its relatively large use by speculators, which contributes to price volatility.

Besides investing in GBTC, the fund also disclosed owning 85,000 shares of Coinbase worth $21.53 million. As of writing, COIN shares are trading at $278.44, seeing an uptrend since late July, the same as Bitcoin. Still, compared to Bitcoin being down 23% from its all-time high, COIN has some way to go to reach the $429.54 peak made on its debut day.

The Trust noted that the cryptocurrency exchange became a public company in mid-April following their direct listing on Nasdaq at a reference price of $250.

“We believe over the long term the company has the potential to be the leading technology platform in the growing cryptocurrency space,” reads the filing.

With COIN’s 2021 earnings trading at 30x, it “is quite a steal for a quickly growing company in this market,” whose revenues are expected to be 4.5x of 2020 numbers.

While the market may be concerned about the revenues and earnings, given that they are peak cycle figures, “we see significant potential for the business over the long term as the nascent industry continues to grow and COIN cements its position as the leading platform,” it said.

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Author: AnTy

Billionaire John Paulson Prefers Gold Over BTC; “There’s A Very Limited Amount Of Investable” Bullion

‘Big Short’ Billionaire John Paulson Prefers Gold Over Bitcoin Because “There’s A Very Limited Amount Of Investable” Bullion

And yet he doesn’t understand Bitcoin; it looks like he’s married to his gold bags. And he can’t put a short on crypto either because “there’s unlimited downside” to them, and he doesn’t want this trade to outdo his “greatest trade” made a decade ago.

Billionaire John Paulson, who netted $20 billion from the 2008 ‘Big Short’ crisis, says cryptocurrencies are a bubble that will “eventually prove to be worthless.”

While Paulson made it big by betting against the U.S. housing market more than a decade ago, the same can’t be said of the crypto market, where the easiest trade seems to be long or going ultra-long.

Things don’t seem to be going well with his firm. According to Bloomberg, he turned his hedge fund into a family office last year after assets dropped from their peak of $38 billion in 2011 to about $9 million in 2019, and “he found himself managing mostly his own money.”

Much like Paulson, ‘Big Short’ fame hedge fund manager Michael Burry also described Bitcoin as the “greatest speculative bubble of all time” in March and then three months later, following the big sell-off. He said the crypto-asset would collapse, but since then, BTC has retraced sharply and is back to make its way to $50k.

Now, in an interview with Bloomberg, Paulson, 65, dismissed crypto assets, saying, “I wouldn’t recommend anyone invest in cryptocurrencies.”

This makes sense that he is invested in gold and believes the precious metal “does very well in times of inflation,” noting the last time the billion was parabolic was in the1970s when there were two years of double-digit inflation.

He further explains why exactly gold does parabolic, which is basically “a very limited amount of investable gold.”

‘As inflation picks up, people try and get out of fixed income. They try and get out of cash. And the logical place to go is gold, But because the amount of money trying to move out of cash and fixed income dwarfs the amount of investable gold, the supply and demand imbalance causes gold to rise.”

And yet, he doesn’t get Bitcoin. He could very well be married to his gold bags.

According to him, when it comes to cryptocurrencies, they are “a limited supply of nothing,” and they have “no intrinsic value.” “So to the extent there’s more demand than the limited supply, the price would go up. But to the extent the demand falls, then the price would go down,” he said.

Paulson added that crypto assets “will eventually prove to be worthless” and will go to zero once the exuberance wears off or liquidity dries up.

Given his confidence in cryptos going to zero, it would make sense that Paulson would put a big short on them. But not according to the billionaire because “there’s unlimited downside” to them.

“Even though I could be right over the long term, in the short term, I’d be wiped out. In the case of Bitcoin, it went from $5,000 to $45,000, It’s just too volatile to short.”

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Author: AnTy

Michael Saylor’s MicroStrategy Buys 3,907 BTC for $177M, Holding Nearly 109k Bitcoins ($2.918B)

Michael Saylor’s MicroStrategy Buys 3,907 BTC for $177M, Holding Nearly 109k Bitcoins ($2.918B)

Publicly-listed business intelligence company MicroStrategy which holds Bitcoin on its balance sheet, announced on Tuesday that it had bought an additional 3,907 BTC for $177 million in cash.

The company now holds a total of $108,992 Bitcoin, acquired for just over $2.9 billion. The average price of MicroStrategy’s BTC acquisition now comes at $26,769 per Bitcoin.

Interestingly, the average price of its latest purchase was $45,294 per Bitcoin, while the leading cryptocurrency dropped to about $28,800 in June. Additionally, between May 17 and August 9th, the price of Bitcoin remained under $45,000, between $30k to $45k.

Despite this, MicroStrategy’s average price is at nearly $45,300, while it has only been the last weekend that BTC surpassed $50k for the first time in three months and is trading around $48.5k, as of writing.

Bitcoin is currently the 7th largest asset with a market cap of roughly $925 billion. Its dominance is holding just above 44% in the crypto market, after bottoming out at 39.6% in late May.

Overall, Bitcoin dominance has been on a downtrend since late December 2020, when it was at a 3.5-years high of 73.62% as more and more coins continue to enter the market.

The shares of MSTRare trading at $707.47, up 42% from the May 19 low but nowhere close to the early February peak of $1,315.

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Author: AnTy

Auto Insurer Metromile Adds $1 Million worth of Bitcoin to its Balance Sheet

Auto Insurer Metromile Adds $1 Million worth of Bitcoin to its Balance Sheet

Car insurance company Metromile invested $1 million in Bitcoin during the six months ended June 30, 2021.

“During the six months ended June 30, 2021, the Company purchased an aggregate of $1.0 million in digital assets, comprised solely of bitcoin,” reads the company’s SEC filing on Tuesday.

For the storage of its Bitcoin, the company is using a third-party custodial service.

The company also reported an impairment loss of $0.1 million on Bitcoin, while no realized gains or losses were recognized during the three months and six months ended June 30, 2021. As such, the fair market value of bitcoin held as of June 30, 2021, was $0.9 million.

“The digital assets are initially recorded at cost and are subsequently remeasured on the consolidated balance sheets at cost, net of any impairment losses incurred since acquisition,” says the document.

Back in May, when announcing the option for policyholders to pay premiums and receive claim payouts in BTC, the digital insurance platform had said that the company would buy $10 million in Bitcoin in Q2.

“Supporting decentralized finance and adding bitcoin as a new payment option is the next logical step… as cryptocurrency becomes mainstream and a more significant portion of consumers’ assets,” said Metromile CEO Dan Preston at the time.

Metromile, which charges premiums based on miles driven, reported net earnings per share loss of $0.33 on total revenue of almost $29 million in the second quarter.

While the numbers improved from the second quarter of 2020 and both revenue and EPS beat analyst estimates, investors were disappointed with the results and the remaining outlook for the year.

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Author: AnTy

MSTR Stocks Are A “Leverage Long” Bet on Bitcoin, says MicroStrategy CEO Michael Saylor

MSTR Stocks Are A “Leverage Long” Bet on Bitcoin, says MicroStrategy CEO Michael Saylor

“We’ve been very intelligent about the way we put together the leverage,” said Michael Saylor, who is not interested in diversifying into other cryptos because he believes “holding Bitcoin for the long term is the highest upside lowest risk strategy” he can pursue.

Publicly-listed business intelligence company MicroStrategy is sitting on massive paper gains, about $1.5 billion if it sold its 105,085 BTC stash at current prices.

According to Bloomberg data, these gains are more than double the cumulative earnings posted by the company in the last 25 years. The nominal gain is also over 3x the revenue generated by the company since it first added Bitcoin to its treasury last August.

These gains are despite MicroStrategy having to write off millions in accounting charges related to Bitcoin.

According to the company’s second-quarter financial results, as of June 30, 2021, MicroStrategy had $3.653 billion in digital assets based on non-GAAP (generally accepted accounting principles) calculation with a non-GAAP cost basis of $2.741 billion.

Talking about racking up these accounting charges for the Bitcoin it is holding, MicroStrategy Chief Executive Officer Michael Saylor said they’re “leveraged long bitcoin” with a decade-long view. He said in an interview,

“Our view is that Bitcoin is an open digital property network and one day billions of people are going to hold digital property all our bitcoin on their mobile phones. And so we just want to get there before the billions of users get there and we’re patient.”

As for why people should invest in MSTR stocks rather than directly in BTC, Saylor explained that MicroStrategy is an operating company that sweeps its operating income into the leading cryptocurrency on which they are leveraged long.

“We borrowed $2.2 billion at a blended interest rate of about 1.5% interest. So if you like bitcoin, then you definitely would like the idea of owning” this leveraged position, he added.

“So I think we’ve been very intelligent about the way we put together the leverage and we’re unique in that regard. There is no publicly-traded company that’s got our bitcoin position with the ability to raise debt and buy bitcoin with debt.”

In the 2Q21 report, the company said it would continue to “deploy additional capital” in its digital asset strategy, which involves acquiring and holding BTC. Before that, the company had filed to sell a billion dollars in new stock to raise more funds to buy the crypto asset.

“I think in time, we will buy Bitcoin. It’ll just be a question of when we buy it with cash flows or with debt or with equity. And that’s all just a function of market conditions. And we try to do whatever is going to be created for our shareholders,” said Saylor regarding his future Bitcoin plans.

Overall, Saylor remains “very, very bullish on Bitcoin long term,” and what they “want to hold is a form of the non-sovereign store of value forever.”

As for looking past Bitcoin, to maybe even the second-largest cryptocurrency, Ethereum, which is the platform on which DeFi and NFT sector is flourishing and is increasingly gaining the attention of institutional investors, for MicroStrategy, “holding Bitcoin for the long term is the highest upside lowest risk strategy we can pursue.” ETH 2.81% Ethereum / USD ETHUSD $ 2,536.21
Volume 18 b Change $71.27 Open $2,536.21 Circulating 116.92 m Market Cap 296.53 b
10 h MSTR Stocks Are A “Leverage Long” Bet on Bitcoin, says MicroStrategy CEO Michael Saylor 10 h Bitcoin and Ether Print Green Candles for 10 Consecutive Days, OI on FTX & CME Rises Sharply & Faster than Binance 1 d Avalanche Launches New Cross-Chain Bridge To Connect Users With Ethereum

The company has no plans to diversify in crypto as “by holding bitcoin we’re diversified because we can see Bitcoin sitting on the balance sheets of cities, state, governments, companies, small investors, big investors, and ultimately think Bitcoin is going to be the core to big tech innovation at Apple, Amazon, and Facebook. So we just want to be holding Bitcoin,” he said.

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Author: AnTy

MicroStrategy Will Continue to ‘Deploy Additional Capital’ in its Digital Asset Strategy: CEO Michael Saylor

MicroStrategy Will Continue to ‘Deploy Additional Capital’ in its Digital Asset Strategy: CEO Michael Saylor

The company will basically continue to pursue its corporate strategy of acquiring and holding Bitcoin, which they see as a “dependable store of value…untethered to sovereign monetary policy.”

Publicly-listed business intelligence company MicroStrategy will continue to invest in Bitcoin as part of its “digital asset strategy,” said the company CEO Michael Saylor in its Q2 earnings announcement this week.

The company said they are currently pursuing two corporate strategies, including growing their enterprise analytics software business and acquiring and holding Bitcoin, which they see as a “dependable store of value…untethered to sovereign monetary policy.”

Saylor noted that they are pleased by the results of its digital asset strategy as such, will continue to add to it. The company first started buying BTC in its treasury reserve in August last year.

“Going forward, we intend to continue to deploy additional capital into our digital asset strategy,” said Saylor as he noted that the company’s digital holdings now exceed 105,000 BTC worth $2.051 billion at the end of 2Q21.

Saylor also attributed one of the best operations quarters of its software business in years to the investments they have made.

MicroStrategy reported total revenue of $125.4 million for the second quarter of 2021, representing a 13.4% growth. Gross profit in the quarter was $102.3 million while cash and cash equivalents stood at $56.4 million, as of June 30, compared to $59.7 million as of December 31.

MSTR shares, meanwhile, are down at $625.

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Author: AnTy

Allied Payment Network to Put BTC on Balance Sheet & Allow Bill Pay In Bitcoin

Allied Payment Network to Put BTC on Balance Sheet & Allow Bill Pay In Bitcoin

Allied has partnered with NYDIG to offer Bitcoin services. According to its CEO, providing access to Bitcoin is a “game-changer.”

Fort Wayne-based Mobile digital payment services provider Allied Payment Network has partnered with NYDIG to become the first bill payment provider to allow its customers to buy, sell, and hold Bitcoin.

Allied will also add Bitcoin to its corporate treasury.

This partnership helps financial institutions meet the growing demand for Bitcoin, whose adoption has increased 207% over the 10-year period beginning July 2010. Ralph Marcuccilli, founder and CEO of Allied, said,

“Allied’s primary focus is to make it easier for financial institutions to provide value-based technology that differentiates them in the marketplace, attracts new depositors, retains through high engagement, and generates revenue.”

“Providing access to bitcoin does just that, and is a game-changer for many community institutions that are struggling to compete.”

Customers meanwhile get a secure, easy-to-use alternative to transacting with unregulated bitcoin entities. Allied and NYDIG will also provide additional capabilities for customers, such as the ability to make digital payments funded by BTC.

Recently, the Bitcoin service provider, which is a subsidiary of Stone Ridge, partnered with Fiserv, Q2, and enterprise payment giant NCR as well. As we reported, NYDIG’s banking infrastructure partnerships are estimated to let them offer bitcoin services to about 70% of US banks.

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Author: AnTy

Mexico’s 3rd Richest Man Bashes Fiat as “Fraud,” says BTC Should Be in Every Investor’s Portfolio

Mexico’s 3rd Richest Man Bashes Fiat as “Fraud,” says Bitcoin Should be in Every Investor’s Portfolio

Ricardo Salinas Pliego says he is working on making his bank the first in Mexico to accept Bitcoin, which he called “the new gold.”

Mexican billionaire Ricardo Salinas Pliego said his bank is on the way to start accepting Bitcoin.

“Sure, I recommend the use of Bitcoin, and me and my bank are working to be the first bank in Mexico to accept Bitcoin,” Mexico’s third-richest man and owner of Banco Azteca said in a tweet in response to Michael Saylor, the billionaire founder and CEO of Microstrategy.

Saylor quoted a video in which Salinas said Bitcoin should be part of every investor’s portfolio and bashed fiat currencies, calling them “fraud” and “stinky.”

Salinas shared that he has been studying cryptocurrencies a lot and found that it’s an asset that has international value and trades with enormous liquidity at a global level, and that is enough reason for it to be part of every portfolio.

According to him, the finite supply of Bitcoin, 21 million, is the “key” part, and that’s why he doesn’t believe anything that Ethereum does because it doesn’t have a finite supply.

“For all I know, they emit more, and your asset depreciates.”

Talking about the fiat being a fraud, Salinas explained how when he started in 1981, the Mexican peso was 20:1 against USD, and today it is at 20,000:1, and the situation is even worse in Argentina, Venezuela, and Zimbabwe.

He said fraud is inherent in the fiat system, pointing to the US where the monetary emission went to the moon, and the dollar as hard money is a joke.

When asked what he would take — gold, silver, Bolivars, Argentine pesos, and Mexican pesos, Salinas wasn’t interested in any of it, but he said,

“I would take Bitcoin.”

Last year, Salinas said that he holds 10% of his liquid portfolio invested in the cryptocurrency. The Mexican tycoon’s fortune has risen $2.8 billion this year to $15.8 billion, according to the Bloomberg Billionaires Index.

In response to MicroStrategy’s Saylor saying, “If you are hoping to preserve your wealth for a generation, Ricardo Salinas suggests you invest in bitcoin. The strategy is simple – choose the highest quality asset you can find and hodl,” Salinas said,

“Bitcoin is the new gold.”

The cryptocurrency is much more portable and so much easier to transport than having gold bars in your pockets, he added.

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Author: AnTy