Today, on the back of unrealistic assumptions, unwarranted optimism, empty rumours and wild speculations, Tesla became the most valuable carmaker in the world (despite producing 300x fewer cars than its competitors). This inglorious folly won’t last and will make a great case study of market inefficiency and failure.
Hey Andrew, I can support you by sharing how I learnt to read financial statements and create a story behind securities' valuation methods. But I would rely on people who spent time professionally and have the right credentials to educate about investing.
Here we go again.
Bitcoin cannot become conventional mean of transactions (money), because it is inherently deflationary (its limited supply means that it is better to hoard it rather than buy things with it). Fiat currency may be replaced by CBDCs, but not by bitcoin et al. Can it become a more conventional asset, aka modern gold? Unlikely, for many reasons. Most likely scenario is that Bitcoin will remain highly volatile speculative asset, until some some sort of regulatory clamp down or other mishap.
Bitcoin is on the rise again. Checked hedge funds performance trading crypto assets.
Main reason - funds could produce higher returns compared to hold strategies. Hedge funds are quicker to respond, can go long and short, most importantly professional traders are in place.
My learnings so far:
1. Hedge funds performance is poor compared to Bitcoin buy and hold. Funds act more like volatility reducing mechanism rather than added growth.
2. Performance exception is Quantitative funds. Positive returns even in 2018 bear market, lower returns in Bull market during 2019. On average - similar returns to buy and hold Bitcoin.
3. Bad performing funds just don’t survive long enough - thus data is hard to track.
4. Fair option is to buy and hold assets yourself. Or consider quantitative funds for more stability.
1. Only 2018-2019 data.
2. 48 funds included.
3. High management fees and possibly higher entry amount required.
4. Source: PwC https://www.pwc.com/gx/en/financial-services/pdf/pwc-elwood-annual-crypto-hedge-fund-report-may-2020.pdf