Olives Are A Better Inflation Hedge Than Bitcoin, says “Black Swan” Author

Olives Are A Better Inflation Hedge Than Bitcoin, says “Black Swan” Author

Olives are a shitty monetary asset, contrary to what bitter nocoiners may claim, counters Saifedean Ammous, author of The Bitcoin Standard.

Once a Bitcoin enthusiast, “Black Swan” author Nassim Nicholas Taleb has become a critic, calling it a “gimmick” and “Ponzi” now.

In an interview with CNBC on Friday, Taleb said the trillion-dollar cryptocurrency is also too volatile to be an effective hedge against inflation.

“Basically, there’s no connection between inflation and bitcoin. None. I mean, you can have hyperinflation and bitcoin going to zero. There’s no link between them.”

“It’s a beautifully set up cryptographic system. It’s well made, but there’s absolutely no reason it should be linked to anything economic.”

To fight this inflation, investors would be far off purchasing property than buying bitcoin. Even olives would be better, he said, “You’ll have olive oil. If the price collapses, you’ll have something.”

In counter-argument, Saifedean Ammous, author of The Bitcoin Standard, said,

“Olive oil isn’t just glorified lubricant, it’s also a shitty monetary asset, contrary to what bitter nocoiners inflamed from the lack of proper Mediterranean meat nutrition may claim.”

“Not only is olive oil a terrible money, it is also very difficult to verify, unlike bitcoin. It doesn’t have full nodes, and even sophisticated scientific testing isn’t enough to determine if it’s been mixed with rapeseed & canola industrial waste.”

A Game of “Pure Speculation”

To Taleb, bitcoin has characteristics of a Ponzi scheme that’s right out in the open.

His initial support to the cryptocurrency, apparently, Taleb was “fooled by it” because he thought it could develop into a currency.

“Something that moves 5% a day, 20% in a month — up or down — cannot be a currency. It’s something else,” said Taleb. But as legendary value investor Bill Miller said, “volatility is the price you pay for performance.”

Currently trading just under $50k, down from last week ATH of $65k, BTC price is still up over 1,215% from March low.

“I bought into it … not willing to have capital appreciation, so much as wanting to have an alternative to the fiat currency issued by central banks: A currency without a government.”

“I realized it was not a currency without a government. It was just pure speculation. It’s just like a game … I mean, you can create another game and call it a currency.”

Nassim Nicholas Taleb “Black Swan” Author

Given that Bitcoin is the best performing asset of 2021 and was also of the last decade, in spite of the fact that Tesla and other companies accept it as a form of payment, it makes complete sense people are more interested in it as a store of value than spending it on a daily basis.

In the light of growing demand and designed supply cap, the price target for Bitcoin is anywhere between $100k to $1 million in the future.

But for Taleb, that doesn’t matter, as “bitcoin could go to $1 million,” and it wouldn’t change his argument.

“These gimmicks, you have bitcoin today. You may have another one tomorrow. They come and go, and there’s no systematic link between them and the claims they make.”

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Author: AnTy

UK Hedge Fund Brevan Howard Plans to Invest 1.6% of $5.6B Capital in Cryptocurrencies

UK Hedge Fund Brevan Howard Plans to Invest 1.6% of $5.6B Capital in Cryptocurrencies

European hedge fund Brevan Howard Asset Management is reportedly planning to invest part of its capital in Bitcoin, according to Bloomberg.

Hedge Fund Joins League of Institutional Investors

Per the report, the firm is set to invest up to 1.6% of its $5.6 billion capital in cryptocurrencies. This translates to about $84 million soon to be allocated into digital assets.

Co-founders of crypto investment firm Distributed Global, Johnny Steindorff and Tucker Waterman, will oversee the crypto purchase for Brevan Howard.

Brevan Howard plans to have a diversified portfolio of cryptocurrencies; not just Bitcoin (BTC) and Ethereum (ETH).

The billionaire co-founder, Alan Howard has been investing in cryptocurrencies with his personal investments. He joins the likes of wall street heavyweights backing cryptocurrencies.

Howard owns a significant stake in European cryptocurrency asset manager CoinShares. He has also led and participated in many funding rounds for crypto startups. These include European companies such as Komainu and Nextmarkets.

More To Come, Less To Go

With the increasing debut of institutional investors in cryptocurrencies across the world, experts believe that more will come in and less will go because of the rising value of Bitcoin. At press time, Bitcoin trades at $61,896, still down 1.6% in the last 24 hours.

A survey report conducted by Glassnode showed that there was about 4 million Bitcoin in circulation, a feat that has never happened before.

The report added that the sharp rise in the demand for digital assets might lead to a massive supply squeeze in the meantime, which is capable of pushing the price higher.

As a result, the coins being mined are not even enough to meet the people’s demand. Most experts believe the short squeeze is also a factor driving crypto prices.

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Author: Jimmy Aki

Force DAO, A DeFi Hedge Fund, Loses Over $375k in xFORCE Token Exploit

Force DAO, A DeFi Hedge Fund, Loses Over $375k in xFORCE Token Exploit

The decentralized finance hedge fund, ForceDAO, confirmed the protocol suffered an attack on Sunday at around 7.06 AM UTC. According to a blog post by the ForceDAO team, the attack was instituted by five black hat attackers, with one of the attackers returning the funds.

On Sunday, DeFi hedge fund, ForceDAO announced an attack on its protocol – specifically the xFORCE contract. In a post mortem report from the ForceDAO team, a total of 183 ETH (~$367,000) was drained and liquidated on the contract exploit.

The attack was noticed first by a white-hat hacker, who started draining funds from the xFORCE contract and later returned the funds to the ForceDAO multisig wallet. Explaining the exploit, Polymath’s Mudit Gupta said the FORCE token transfer functions return false rather than reverting when the sender doesn’t have enough balance in their wallet.

“The xFORCE contract assumes FORCE will revert and does not handle the returned value,” Gupta explains.

This means anyone can deposit the synthetic FORCE tokens, xFORCE, even if they do not have any FORCE tokens. Hence, the attackers could mint fresh xFORCE tokens without the xFORCE contract locking up any FORCE tokens.

Four black hat hackers did not return their funds but rather sold them on the open market totaling $367,000 in losses for the xFORCE contract. Here is a complete list of addresses the hackers used to drain the funds.

According to the post, Force, xForce, and Force/ETH LPs on UniSwap and SushiSwap were all affected. The team has since removed all xFORCE tokens from the contract to prevent further hacks. Alberto Cevallos, the founder of ForceDAO, confirmed they would be refunding any affected parties in the hack and reward the white hat hacker.

“I can confirm that there will be a snapshot and new token,” Cevallos said. “We’ve begun internal re-structuring and will be announcing a plan over the coming days making any affected FORCE holders and LPs whole.”

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Author: Lujan Odera

More Bitcoin Supply Ready to be Sucked Out of the Market

With more than $1 billion tied up in hedge fund arbitrage-shorts, they need long-spot positions to hedge further, driving the supply shortage, notes Charles Edwards of Capriole Investments.

Bitcoin currently trades around the all-time high, coinciding with a weekly resistance level. On the lower timeframe, as the downward trend pattern breaks, we could see the continuation to new highs.

The $6 billion Bitcoin futures and options expiry last Friday also suggests that downward pressure on the price has eased. “In the past months, Bitcoin has set local bottoms around important option expiration dates,” noted Charles Edwards of Capriole Investments.

The growing interest in these products means they can have a significant impact on BTC price.

In the futures market, contracts are trading at significantly higher prices than the underlying asset. And by buying spot Bitcoin and shorting the futures, the delta between the two can be locked in as a risk-free trade.

This is exactly what hedge funds are doing, as evident from their massive short position in Bitcoin in the recent month, which

“is a big endorsement for Bitcoin, as it shows that Bitcoin is becoming a serious asset class.”

Currently, there are more than $1 billion tied-up in hedge fund arbitrage shorts, which is growing fast. This means, “all these shorts require long-spot positions to hedge risk, so more and more Bitcoin supply is being sucked out of the market just to maintain these short positions.”

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Overall, Bitcoin is “skewed bullish” in all timeframes, but still, it will be a daily close above $60k that will provide a good technical breakout buy signal for the short term, said Edwards.

“Historically, April is the second-best month for Bitcoin returns. With an average return of over 20%, the 70Ks are on the cards.”

While Bitcoin’s exponential rally is showing some healthy signs of consolidation over the last few months, the underlying network is strong as ever. Addresses with non-zero balance are hitting new all-time highs, and the number of active addresses is also near its ATH.

The fact that in recent weeks, over 3-year-old coins have started moving indicates that we are about halfway through this bull market.

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Author: AnTy

Gold Bug’s Bitcoin Hedge: Peter Schiff’s Son Goes All in on BTC, “HODLing to Infinity”

Gold Bug’s Bitcoin Hedge: Peter Schiff’s Son Goes All in on BTC, “HODLing to Infinity”

At this point, however, it’s hard to believe he really hates Bitcoin or isn’t involved in it just as much as he claims to be.

Gold bug Peter Schiff is known for his contempt for Bitcoin. He doesn’t miss a single chance of Bitcoin taking a breather or making a correction to bash the leading cryptocurrency, which has been the best performing asset of the decade and 2021.

While Bitcoin is up 95% YTD, having appreciated more than 15x in value from its March low to become a trillion-dollar asset, gold is down 8.93% in 2021 so far and 0.54% this month.

And while Peter has no love lost for Bitcoin, his son went all-in on Bitcoin during the recent correction.

“My son Spencer Schiff went all-in on Bitcoin on the last drop below $50k. 100% of his portfolio is now in Bitcoin. He sold the last of his silver stocks to raise the cash,” tweeted senior Schiff. “He’s HODLing to infinity or bust.”

But of course, he then has to throw in some shade to stick to the biased approach he has taken to hold close when it comes to cryptocurrencies.

“If my own son is this brainwashed imagine how vulnerable most kids are,” he added.

Peter’s antics goes as far as to him saying, “I need to disinherit him. Otherwise he will squander my hard-earned wealth on more Bitcoin,” and that if his son goes wrong in his choice to go with digital gold, “He needs to suffer the consequences of his mistakes. That’s the only way to learn a lesson.”

While “Peter’s son is Peter’s hedge,” at this point, people really doubt he hates Bitcoin just as much as he claims to be.

“I see what you did there. ‘My son is the front for my huge BTC bag’ …nice one,” commented TraderSZ.

“There’s no way this is real. It’s like how Kris Jenner sold Kim K’s sex tape, and now they all are rich,” came from Mrs. Amerina Hodl.

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Even his website accepts cryptocurrency, Bitcoin (BTC), Bitcoin Cash (BCH), and Ethereum (ETH), through crypto payment processor BitPay.

Meanwhile, Spencer Shiff’s commitment has got him a new follower, Twitter CEO Jack Dorsey. “I guess that means he doesn’t have to worry about being de-platformed now,” commented Peter.

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Author: AnTy

Billion-Dollar Hedge Fund, Third Point, CEO Is Doing A “Deep Dive Into Crypto”

Billion-Dollar Hedge Fund, Third Point, CEO Is Doing A “Deep Dive Into Crypto”

Daniel S. Loeb, the chief executive officer of the billion-dollar hedge fund, Third Point, is taking a special interest in cryptocurrencies which he shared with the world over Twitter Monday.

Loeb shared this detail in response to venture capital firm a16z partner Chris Dixon’s piece on NFTs. He said,

“I’ve been doing a deep dive into crypto lately. It is a real test of being intellectually open to new and controversial ideas. Culturally I compare bridging the crypto world with the old as akin to finding a portal between two distinct worlds in the multiverse.”

Given that the hedge fund manager is an avid art enthusiast, it makes sense that the NFTs have captured his interest. He also enjoyed Dixon’s “article as an art collector and investor.”

Talking about his latest interest in the cryptocurrency market, which recently surpassed $1.5 trillion in total market cap, he said it is important to understand it while keeping a healthy skepticism about it. Loeb said,

“Maintaining healthy skepticism while also deepening one’s understanding requires one to engage in what Steve Jobs (and Fitzgerald before him) described as requisite for a superior intellect: “to maintain two opposed ideas in one’s mind and retain the ability to function.”

During his Twitter thread, Daniel Loeb also talked about that being late to the crypto party doesn’t mean that you would be suffering the losses. During the ongoing bull cycle, Bitcoin has hit a new peak at $58,300, and after last week’s losses, BTC is back to surging today, nearing $50k.

Since last year, Bitcoin and cryptocurrencies have gained mainstream recognition, with traditional investors and major companies jumping on the crypto bandwagon. The real estate investor and stock and bond analyst said,

“Another conflict to overcome is the idea that being late to the crypto party will inevitably lead to one taking the sucker seat at a high stakes poker table versus this still being early days in what is just now being adopted in the mainstream.”

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Author: AnTy

First Publicly-Traded German Company Buys Bitcoin as a Hedge Against Euro Devaluation

First Publicly-Traded German Company Buys Bitcoin as a Hedge Against Euro Devaluation

Bitcoin “exact antithesis of traditional currencies,” said Lars Müller, CEO of Cannabis company SynBiotic SE.

SynBiotic SE has become the first publicly-traded company in Germany to add Bitcoin to its balance sheet.

Corporate Bitcoin buying has now grown beyond the US, where already the likes of Tesla, MicroStrategy, and Square have bought the leading digital asset.

Now, Germany has also joined in with SynBiotic SE, a cannabis company, in an attempt to hedge against the devaluation of the euro due to the excessive increase in the money supply of the fiat currency.

“Our decision focused less on price fluctuations than the risk of devaluation of euro and dollar,” said SynBiotic SE CEO Lars Müller on the company’s decision to make a shift to Bitcoin.

Müller further points to Bitcoin’s limited supply of 21 million, which he said is the “exact antithesis of traditional currencies.”

“This limit is fixed and inviolable, which the cryptocurrency‘s decentralized organization and the blockchain‘s tamper-proof nature in turn guarantees,” added Müller, which he said instills “more long-term confidence in bitcoin than in euros or dollars, where a central institution, influenced by politicians, can expand the money supply immeasurably.”

Besides the risk of devaluing fiat currencies, the cannabis sector already has very positive experiences with bitcoin as a digital means of payment. SynBiotic’s several subsidiaries already accept payments in bitcoin in addition to euros.

According to a recent survey, 5% of company executives plan to hold Bitcoin. This increased corporate adoption has Bitcoin nearing the $52,000 level, up over 77% YTD.

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Author: AnTy

Stable Gold May Act As A Hedge Against Crypto Volatility Says Top Gold Miner

Stable Gold May Act As A Hedge Against Crypto Volatility Says Top Gold Miner

The age-old safe haven asset is tangible, and crypto holders should consider having some gold, said Newcrest Mining Ltd. CEO Sandeep Biswas.

With the market capitalization of the overall cryptocurrency market reaching $1.5 trillion, one of the world’s leading gold miners recommends investors to buy the traditional safe-haven asset, gold.

“If you’re into cryptos, you want to consider having some gold,” Newcrest Mining Ltd. Chief Executive Officer Sandeep Biswas told Bloomberg following the Melbourne-based company’s earnings reported on Thursday. The precious metal, according to Biswas, “may act as a bit of a hedge against the volatility of cryptos.”

As we have seen since last year, Bitcoin as a digital gold narrative is gaining traction, which actually resulted in the leading cryptocurrency stealing some of the investment inflows from gold ETF products.

Price-wise, the bullion has been on a downtrend ever since, hitting its ATH around $2,075 in August 2020, while Bitcoin hit yet another ATH on Thursday at $49,000. Compared to Bitcoin’s 62.75% gains YTD, the yellow metal is actually down 3.68%.

This certainly heats up the debate whether the digital currency with a limited supply can erode gold’s appeal over time. According to Biswas, the two assets are distinct, and owning the stable gold would benefit crypto holders.

“Gold is a different class of investment,” Biswas said. “It’s a tangible asset: you can see it, you can touch it, you can feel it, you can mold it, you can make it into jewelry, whatever you want.”

While JPMorgan had said gold might suffer because of Bitcoin’s growing acceptance, Goldman Sachs Group believes both the assets can coexist despite the digital asset capturing some demand from the precious metal.

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Author: AnTy

Crypto Assets Are The ‘Poorest Hedge,’ BTC Remains an Investment Vehicle: JPMorgan

Crypto Assets Are The ‘Poorest Hedge,’ BTC Remains an Investment Vehicle: JPMorgan

The bank strategists see crypto investing best to protect against the loss of faith in a country’s fiat currency or payment system.

The cross-asset strategists of JPMorgan Chase say while Bitcoin is the hottest way to diversify portfolios, it has a big valuation risk.

Bitcoin is the “least reliable hedge during periods of acute market stress,” wrote strategists John Normand and Federico Manicardi in a report called “What cryptocurrencies have and haven’t done for multi-asset portfolios” on Thursday.

According to the strategists, Bitcoin has been bad at offsetting short-term drawdowns in big sell-offs. The digital asset’s popularity among retail investors is further increasing its link with cyclical assets. They wrote,

“The mainstreaming of crypto ownership is raising correlations with cyclical assets, potentially converting them from insurance to leverage.”

While Normand and Manicardi said small (up to 2%) allocations to cryptocurrencies improve portfolio efficiency due to high returns and moderate correlations,

“Over shorter infra-month and intra-quarter horizons, crypto-assets continue to rank as the poorest hedge for major drawdowns in Global Equities, particularly relative to the fiat currencies like the dollar which they seek to displace. To the extent that Bitcoin remains an investment vehicle rather than a funding Currency.”

Cryptos’ Role in Portfolio Diversification

The strategists acknowledge the appeal of Bitcoin for investors who are worried about policy shocks and suggest crypto investing might be best to protect against the loss of faith in a country’s fiat currency and its payments system.

However, while trying to find cryptocurrencies’ role in portfolio diversification, the team warned that it wouldn’t be behaving like a traditional defensive asset in the near future.

Normand’s colleague at JPMorgan, Nikolaos Panigirtzoglou, suggested in early January that the price of Bitcoin could hit $146,000 in the long run as it draws investors from gold.

Around the same time, Bitcoin hit an ATH of $42,000 and is currently in a “healthy consolidation” around $30,000.

“Whether cryptocurrencies are judged eventually as a financial innovation or a speculative bubble, Bitcoin has already achieved the fastest-ever price appreciation of any must-have asset,” in comparison to the performance of gold in the 1970s, Japanese equities in the 1980s, tech stocks in the 1990s, Chinese equities in 2000s, and FANG stocks in 2010s, they wrote.

But while Bitcoin had a low correlation with the traditional hedges like gold and treasuries, it recently started moving more with traditional cyclical markets and strategies said, “If sustained, this development could erode diversification value over time.”

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Author: AnTy

World’s Largest Hedge Fund Manager, Ray Dalio, Is Warming Up to Bitcoin

In his latest Reddit Ask-Me-Anything (AMA) session, the founder of the world’s largest hedge fund Bridgewater Associate, Ray Dalio, touched upon Bitcoin, in which there have been tons of questions.

“I think that bitcoin (and some other digital currencies) have over the last ten years established themselves as interesting gold-like asset alternatives,” replied Dalio to a question whether Bitcoin is a potential answer to the issue that the global new world fiat monetary system has become because of central bank money printing which in turn has increased inequality in the US. According to Dalio, Bitcoin has both,

“similarities and differences to gold and other limited-supply, mobile (unlike real estate) storeholds of wealth.”

Talking about Bitcoin relative to gold, Dalio has a strong preference for the asset that central banks will want to hold or use in exchanging value while transacting.

However, the thing is, an investor must diversify his investment portfolio, and Bitcoin can be one. He said,

“It could serve as a diversifier to gold and other such storehold of wealth assets.”

“The main thing is to have some of these type of assets (with limited supply, that are mobile, and that are storeholds of wealth), including stocks, in one’s portfolio and to diversify among them.”

Cash is a bad alternative

These positive remarks towards bitcoin came after Dalio said last month that he may be missing something about the digital asset and that he would “love to be corrected.”

“Looks like @RayDalio has been contemplating bitcoin. Definitely seems like he’s coming around,” commented analyst Mati Greenspan on this new development.

During the AMA, Dalio further talked about the flood of money in the market that is lifting the prices of most assets, which are distributing wealth in such a way that it is “threatening to the value of our money and credit.”

“With the amount of money out there, and cash being such a bad alternative, there’s no good reason that stocks couldn’t trade at 50x earnings,” said the hedge fund manager, which, to be honest, also holds true for Bitcoin but at a larger percentage.

“It is important to diversify well in terms of currencies and countries, as well as asset classes,” he said, adding, “I want excellent diversification at this time.”

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Author: AnTy