Nerijus, what are the events in financial markets which keep surprising you nowadays?
Asked by Justas Janauskas
So many things surprise, astound and humble me this year! We are witnessing once in a generation shift in economic paradigm. For example, government debt no longer matters, they can be insolvent and still get money for free (because if no one else will, central banks will print and lend them the money).
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Can you teach me how to invest?
Asked by Andrew Lim Mao Tung
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.
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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.
Jason BaselCEO @ EduOne, Adventurer
I agree on that it can't serve as a currency, partly because the primary value proposition - which as I see it is 'decentralisation', which is only useful if there is a lack of trust in institutions issuing fiat - is null and void, because I don't see evidence of a systemic lack of trust in issuing authorities. So this doesn't seem like a legit value offering?... RE the gold/commodity argument, maybe this has more merit? Gold has very little value in commercial use (jewelry and industrial use cases account for maybe 10% of annual production), and yet it's price in the secondary market is entirely independent of fluctuations in commercial demand. So it is propped up on 'belief' that it is an asset? There is little underlying value.. Surely BTC or the class as a whole can be a 21st century equivalent?
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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.
About report:
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
www.pwc.com
Marijus KrasnickasValue Creator Through Unity. Founder of UNO Parks. Your Gold Fish.
are you sure? Fear kicks in before investing.
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