Bitcoin Forum

Steinbrugge joins a series of hedge fund managers and investors who are already taking steps towards integrating Bitcoin into their portfolios.

https://bitcoinist.com/bitcoin-will-be-part-of-a-lot-of-hedge-fund-portfolios-investment-ceo/

I don't understand these guys who manage these hedge funds, until a few months ago the price was $3300 and all I heard was: don't buy bitcoin now because haven't touched the $1000 bottom yet... and now that the price increased a lot are making a lot of positive comments and even are encouraging people to invest in bitcoin. Are these guys who manage these hedge funds reliable? I mean can they really make a profit? because I wouldn't use it

Yeah, it's definitely a bit weird from the hedge funds, although most of the profit due to having so much capital gives you a leg up from other investments, so they usually get better opportunities.

It seems like BTC is invisible to these hedge funds when it is below 5,000 USD, which would usually be a great chance to buy, especially when you have a large amount of capital, and then after BTC does it's bull run and goes up to 12,000 the capital funds finally take notice of cryptocurrencies, they always seem to miss out.

BTC being more and more mainstream as an investment option is always good though, happy they are at least paying attention.

I always thought that that's how they play the game. If they say not to buy then they're probably accumulating, and when they push people to buy something even though the charts are showing weakness it means they want to exit the market and save their profits.

I'm pretty sure those guys already knew Bitcoin since way back, I mean, they'd have already researched a lot of assets and judge each of them, so saying Bitcoin is under their radar is not easy to believe. A proper explanation would be they buy it first and announce later.

As with many things, some are good at it, most are merely good at marketing it to separate people from their money.

That's true, but let's compare the gains in %% for both of them.

Gold Dec 31, 2018 - 1,281 USD/oz      -        Now - $1,498 USD/oz - 16.94%

BTC Dec 31, 2018 - $3,796 for 1 BTC     -    Now - $11,838 for 1 BTC - 211.85%

I think that in terms of investment gold is highly overvalued relative to Bitcoin nowadays.

If you took some other data points, like the whole 2018 year, you would get a different picture. The point is, Bitcoin's price is not strongly correlated with traditional economy. It went from $1,000 to $20,000 without any economic crisis around, and then it crashed just because it was in a bubble.

So, if an economic crisis happened in the beginning of 2018, Bitcoin would be a horrible hedge, because it would most likely keep crashing, although maybe it wouldn't be as hard as it actually did. Bitcoin has a place in hedge fund portfolio's, just because it's an interesting asset with high potential, but it can't be viewed as a reliable hedge against stocks.

Right now, hedge funds managers are realizing that Bitcoin can be providing the best ROI they are looking for and they fully realized that there is a big possibility that soon a major bull run can occur and so they are now readying themselves for some windfalls of possible profits. Well, this is what hedge funds should be doing: finding the best ways for their money to grow at a risks they can still manage. Will this be a big trend into the end of the year? There is a possibility for that...which can mean a lot for Bitcoin in 2020.

I have wondered the same thing, how the hell they operate. It appears to me that they jus tgo with the traditional stocks and this is the only thing that makes money for them , but what happens when stocks will finally go down.

There is other thing that is off with investment in BTC as they say, they are strictly controlled and those pension funds are mostly from USA since they dont have a solid pension as EU and other countries. I am confident that they need official regulated financial options, they can NOT buy at OTC or exchanges . So where are they going to buy BTC..

If such info is on the newspapers, they most probably already filled their bags and now started planting the news so the price grows nicely.

We look at everything from a 'how much can I gain perspective', but that's not necessarily the case with investors using gold as a hedge. I think these comparisons are just used to stimulate the Bitcoin narrative.

I really thought that investors and people in general were sitting in gold for the gains, which some might, but the majority is happy when they can break even and therefore not lose as much as when they would have held fiat.

Gold has its own characteristics that make it unique, where Bitcoin is just something that has been here only a decade and hasn't actually booked much progress at all. It just grew in price.

What fundamental progress has there been? We've had SegWit that's being prevented from growing further in adoption by big blockers, and LN, which I like a lot, but isn't anywhere near being useable for the masses.

I wouldn't really call it a hedge fund but a whale group depending on how much fund they will be managing in. If big money from the financial industry will be coming in let's not expect them to hodl Bitcoin but to quickly acquire and dispose it quickly as possible, it will be a fast entry and exit type of play and not a buy and hold strategy for them. They will only use the big fund they have in order to influence the prices and once they reach the target price they want they will quickly exit the market. It would be a repeating cycle for them in order to maximize profit without risking their money due to hodling.

had exactly the same thoughts about this , the funds do not announce their investments when the price is low , for some reason
it is not like their financial analysts are succumbing to FOMO and are suddenly buying
money silence is only working during bear markets it seems  :D , now it is time to spread the news and increase the asset's price

I found out about how much of a liar Kevin O'Leary is. He keeps saying that he doesn't know why anyone would put 'real' money into Bitcoin, and what the value is of Bitcoin, while in 2013 (with Bitcoin far below the $1000 level) he was already aware of it and considered putting a portion of his net worth in it. He even explained the benefits of Bitcoin as distributed ledger, lol.

Video can be seen here with some extra info; https://www.youtube.com/watch?v=RkeBVoAhRLA

Him currently trying to brush off Bitcoin as a fraud is a very clear sign that he's trying to accumulate more. What a tool.

That's rght I don't believe that hedge funds so now where is that 1000& hedge touch bottom, so meaning no once can control  the price of bitcoin or crypto in the coin market as unpredictalbe currency.