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Asset Manager Values Bitcoin at $500K, Expects BTC to Be Worth More Than Gold, Sees Massive Institutional Interest – Markets and Prices Bitcoin News

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Kevin Helms

One River Asset Management’s CEO says his firm now holds bitcoin worth “well over” $1 billion. He revealed that the institutional interest in bitcoin is “astounding,” noting that almost all major institutions in the U.S. are having discussions about the cryptocurrency. He believes that bitcoin will be worth more than gold, placing its value at approximately $500K.

One River Asset Management’s CEO Is a Bitcoin Bull

The CEO and co-founder of One River Asset Management, Eric Peters, shared his view on bitcoin at length in an interview with Bloomberg last week. Firstly, he revealed that his asset management firm now holds bitcoin “well in excess of a billion dollars at this point.” He then discussed the case for institutional investors to own cryptocurrencies currently.

“We are in a unique period right now,” Peters began. It is the period seen many times throughout history where “governments become extremely indebted, monetary policy becomes less effective, and ultimately governments … need to issue lots of debt and begin actually spending. Typically, when they do that, they try to unburden themselves from the debt they’re incurring by debasing the currency that they’re issuing that debt in.” The CEO added that “ultimately, those who hold that currency lose their spending power.”

He proceeded to talk about crypto assets, stating that they “are really interesting in the sense that they’re a new asset class altogether.” He noted that they “have some unique qualities, part of which resemble the qualities that you’d find in gold except that they’re wildly underpriced relative to gold.”

Moreover, bitcoin and other cryptocurrencies have “technology properties,” and “will look different tomorrow, and next year, and in a decade to come.” This makes bitcoin “unique to gold because if gold has looked the same two thousand or two billion years ago, then it will look the same in two thousand and two billion years from now,” the One River executive described, elaborating:

I think you have to be a real pessimist to think that an emerging technology platform doesn’t become more interesting, more useful, more valuable.

He further detailed that “It’s very rare that you find an asset that can kind of allow you to capitalize on future upside [the technologies] while also mitigating the downside [monetary debasement] like that.”

Peters also clarified that he always starts with the macro aspect when it comes to investing as he has been a macro investor his entire career. With technology, the CEO opined:

I’ve seen enough to know that, in essence, tomorrow is going to look better than today. When you’re investing, that’s incredibly important to know — does tomorrow look better, worse, or the same. I think I’ve seen enough to just understand that tomorrow looks better than today in these assets.

“We’re issuing enormous amounts of debt. We’re having our central bank buy them … the scale of it is just so profound … so the question is, in that environment, what are the assets that you can own,” he continued.

Peters proceeded to list some plausible investment options: equities, gold, and digital assets. He asserted that digital assets “are dramatically undervalued relative to some of these other stores of value,” which is why his firm is “excited” about this, emphasizing that “It’s just an undervalued asset for that macro backdrop.”

The One River CEO also praised bitcoin’s fixed supply. He stated: “It’s unlike any asset that I’ve seen in the world in the sense that there’s no supply response to the price. If bitcoin went up five times in value, or 10 times, or 100 times, there wouldn’t be more bitcoin produced. You can’t say that about really any other asset in the world.”

He also compared bitcoin to gold. “I think it will be worth more than gold at some point because gold is not infinite. Gold continues to increase in terms of supply,” he noted. In contrast, there will only be 21 million bitcoins. The CEO elaborated:

If it were just to go up to the market cap of all the gold in the world, it would go up to something in the order of $500,000 per bitcoin.

“Right now, it’s trading at let’s say $30,000, so if you look at it from a trader’s perspective there’s enormous convexity to the upside,” he affirmed.

Answering a question about how long it will take for bitcoin to become more valuable than gold, Peters said that it is “policy dependent.” He could see it happening in a number of years if we see “some type of next recession that is followed by even more issuance and more buying from the fed.” Nonetheless, he pointed out that “one of the things about these assets is … it doesn’t cost you anything to hold them. You have the price risk to the downside but you don’t have a negative carry.”

The One River executive also discussed whether crypto assets will appeal to institutional investors if they continue to exist alongside fiat money or whether institutions need to see some kind of government or central bank acceptance or endorsement before jumping in.

After he publicly revealed that his firm had invested about a billion dollars in bitcoin, he said that “the number of institutions that have been filling my day with calls and inquiries about this is astounding.” He reiterated that it is already happening “enormously.”

Peters expects the crypto asset class will “mature in a decade from now,” adding:

What’s happening is almost every big, credible institution in the U.S. is having discussions about this … Many of them are calling us to ask.

“They’re fascinated by this,” he further shared, emphasizing that “they should be because this is the first and last asset class that will appear in our lifetime.”

As for how the crypto landscape, including BTC, will look like a year from now, Peters said, “Prices will be higher.” While admitting that there will continue to be volatility, he believes that it will decrease the higher the prices are. He explained that as the prices rise, “you’re drawing in new types of investors, with stronger hands, quite frankly … so I think that over the next year, a lot of money will be drawn into these assets.”

He also believes that more regulations will come out in an effort to increase transparency for the whole crypto asset class but the regulators will not destroy the asset class because they understand that the future of finance will be digital.

Do you agree with One River’s CEO about bitcoin? Let us know in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.





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Spanish Court Orders the Investigation of Possible ‘Computer Fraud’ on Bittrex Exchange After a User Loses 1.3 BTC – Regulation Bitcoin News

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Terence Zimwara

A Spanish Court has issued an order compelling a division within the country’s police to investigate the possible existence of “computer fraud” on the Bittrex cryptocurrency platform. The order was issued following the filing of a complaint by a Tenerife based Bittrex user who claims to have lost 1.3 BTC (or $58,000) that was stored on the exchange platform.

Cybercriminals Blamed

According to a Spanish media report, the unnamed user’s problems started when initial attempts to access his funds were unsuccessful. However, after gaining access some 48 hours later, the user reports that “the money had literally disappeared.” The user contacted representatives of Bittrex who then “attributed the theft to the actions of cybercriminals.”

Meanwhile, in its February 9 order, the Spanish Court says it wants law enforcement to carry out “a line of technological research that allows the author (of the theft) to be identified.” The court also wants “the Bittrex insurance company” to be involved in the investigation as well as to provide the appropriate insurance policy.

Bittrex Allegedly Culpable

In the meantime, the report also quotes an unnamed “expert” who lists and explains the possible charges facing Bittrex as a result of the user’s loss. In laying the blame for the theft at the door of Bittrex, the expert said:

Bittrex allowed four access attempts before the theft, on May 26, 2020, from different IP addresses, with different locations and with different operating systems, all inconsistent with what was used by the user until that moment and Bittrex did nothing to prevent it.

According to the expert, these “events occurred on three different days from France, Granada, Madrid and a town in Minnesota, in the United States.”

Meanwhile, the expert also notes that the cybercriminal(s) had “allegedly used a different operating system from that of the owner of the account.” This according to the expert “should have raised a red security flag for Bittrex.”

What are your thoughts on this BTC theft incident? Tell us what you think in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons





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Stone Ridge’s Open-End Mutual Fund to Invest in Bitcoin — SEC Filing Opens the Door for Other Mutual Funds to Add BTC – Regulation Bitcoin News

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Kevin Helms

Asset management firm Stone Ridge has filed with the U.S. Securities and Exchange Commission (SEC) for its open-end mutual fund to invest in bitcoin. “This is a big deal. Stone Ridge filing opens the door for every mutual fund to add bitcoin,” said a fellow asset manager.

Stone Ridge Wants Its Mutual Fund to Invest in Bitcoin

Stone Ridge Trust filed Form N-1A with the U.S. Securities and Exchange Commission (SEC) last week. The filing, which is expected to become effective on April 26, relates to the Stone Ridge Diversified Alternatives Fund.

The fund “seeks to generate total returns from diverse investment strategies that we believe have the potential for attractive returns and are diversifying from stocks and bonds,” the filing details. “These strategies include reinsurance, market risk transfer, style premium investing, alternative lending, single-family real estate, healthcare royalties, and bitcoin.”

For the bitcoin investment strategy, the filing explains:

[The fund] seeks to generate returns by gaining exposure to the price of bitcoin by selling put options on bitcoin futures contracts. This strategy may also invest in pooled investment vehicles, such as registered or private funds, that themselves invest in bitcoin.

Anthony Scaramucci, founder of another asset management firm Skybridge Capital, which itself has about half a billion dollars worth of bitcoin in its bitcoin fund, commented on the filing last week. “Important development in bitcoin. Stone Ridge filed with the SEC to become the first open-ended mutual fund to buy bitcoin,” he wrote. Scaramucci also sees heavy demand for bitcoin from his clients and expects the BTC price to reach $100K by year-end.

Noting that “Stone Ridge will be able to start buying bitcoin on April 26 (when their prospectus goes effective),” he opined:

This is a big deal. Stone Ridge filing opens the door for every mutual fund to add bitcoin (if they want to).

Stone Ridge founder Ross Stevens also founded the New York Digital Investment Group (NYDIG), a bitcoin-only financial services firm. Early this month, the firm filed for a bitcoin exchange-traded fund (ETF) with the SEC. Stevens recently said that he sees “a wall of money” coming into the asset class. NYDIG already has over $6 billion in bitcoin and the firm expects to have over $25 billion in the cryptocurrency by the end of the year.

What do you think about mutual funds investing in bitcoin? Let us know in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.





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Asia’s Cryptocurrency Landscape the Most Active, Most Populous Region ‘Has an Outsize Role’ – Economics Bitcoin News

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Jamie Redman

Recently, Messari Crypto Researcher, Mira Christanto published a report that looks into Asia’s cryptocurrency landscape in-depth, as 60% of the world’s population resides in the region. Christanto’s study shows that six out of the top ten largest cryptocurrency unicorns are located in Asia. Moreover, 98% of ethereum-based futures and 94% of bitcoin futures volumes stem from Asia.

Asia’s Financial Landscape Is Ripe for Disruption

When it comes to cryptocurrencies, Asia accounts for a huge number of crypto users, companies, miners, traders, and more. The cryptocurrency and blockchain researcher from messari.io, Mira Christanto, explains that Asia has a “history of dictators, currency depreciation, [and] capital controls – all ripe for disruption.” This has likely led to Asia being the most active cryptocurrency markets, according to Christanto’s recent findings.

Report: Asia's Cryptocurrency Landscape the Most Active, Most Populous Region 'Has an Outsize Role'

Her recently published study called “Asia’s Crypto Landscape” covers the “key exchanges, funds, and market makers that define crypto in China, Japan, Korea, Hong Kong, Singapore, and Southeast Asia, with commentary on regulatory and investment trends.” Countries like China, Japan, Hong Kong, India, South Korea, Singapore, Philippines, Thailand, Indonesia, Vietnam, Malaysia, and more are covered in the 98-page study.

“Leading crypto countries, such as China, Japan, Korea, Hong Kong, and Singapore, have deep pools of liquidity, while other countries have a great potential to scale,” Christanto’s report says. “The nature of traditional finance has played a key role in the adoption of crypto: capital controls pushed investors towards cryptocurrencies in China and South Korea while low-yields pushed adoption in Japan,” she added.

Report: Asia's Cryptocurrency Landscape the Most Active, Most Populous Region 'Has an Outsize Role'

“By the end of 2019, six of the top ten largest crypto firms in the world were located in Asia,” Christanto’s data further shows. “As of January 12, 2021, of the top 20 token projects with headquarters, 42% of the market capitalization is based in Asia. Asia has an outsize role in the crypto markets due to a variety of reasons.”

Christanto’s report continues:

Each country has its own nuances, but factors include high penetration of public market investing, high-technology pedigree, the prevalence of WiFi, deep penetration of e-payments, propensity for gambling, and high percentage of computer- science graduates. Furthermore, Asia’s development as a finance hub has helped contribute to fintech progress. Japan, Shanghai, and Hong Kong are among the top five largest stock markets in the world.

Asia’s Thriving Crypto Landscapes

A few key factoids from Christanto’s study show:

  • Binance, Huobi, and Okex combined have about the same bitcoin holdings as Coinbase.
  • Hong Kong is home to some of the largest crypto derivatives companies in the industry.
  • Japan is a unique market with the largest retail foreign exchange industry, representing a third of total global foreign exchange (FX) and Contract for Differences (CFD) retail volume.
  • South Korea has the highest penetration of crypto investors with a third of workers invested in crypto.
  • Singapore is one of the more lax Asian markets for crypto-specific regulations, though strict on AML, KYC, fit-and-proper controllers, and FATF Travel Rule compliance.
  • The Philippines has one of the largest overseas foreign workers populations in the world, ranking fourth in global remittance recipients.

Report: Asia's Cryptocurrency Landscape the Most Active, Most Populous Region 'Has an Outsize Role'

Asia’s Crypto Landscape findings also indicate that a great number of countries in Asia have thriving landscapes and all for different reasons. For instance, Vietnam’s capital controls “means the crypto spot market operates somewhat in isolation,” Christanto says. Vietnam’s market is retail driven, the report notes and “when bitcoin prices are volatile, the Vietnam market lags by a couple of days.”

In Malaysia Luno is the top exchange in the country as the firm founded in 2013 in Cape Town, South Africa is dominant there alongside Singapore. Christanto and messari.io’s research also saw help from the independent blockchain infrastructure platform Blockdaemon.

Mira Christanto’s messari.io research report on the Asian crypto landscape can be read in its entirety here.

What do you think about Christanto’s 98-page study covering the Asian crypto landscape? Let us know what you think about this subject in the comments section below.

Tags in this story
Asian Landscape, Bitcoin (BTC), China, Crypto Research, crypto-economics, Cryptocurrencies, Hong Kong, India, Indonesia, Japan, Malaysia, Market Shares, Messari Crypto Researcher, Messari.io, mining, Mira Christanto, Philippines, report, Singapore, South Korea, Southeast Asia, study, thailand, trading, unicorns, Vietnam

Image Credits: Shutterstock, Pixabay, Wiki Commons, Messari.io,

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.





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