The Bitcoin Monthly: New Year, New Market Dynamics
In the fourth quarter, bitcoin found strong support at its investor cost basis, then broke out above its total market cost basis and its 200-day moving average …
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Applying Machine Learning Portfolio Modeling to Bitcoin
New Modeling Techniques to Evaluate Bitcoin in a Multi-Asset Class Portfolio Introduction Investors considering whether to add bitcoin to their multi-asset class portfolio face the challenge of how to think about both the impact of a bitcoin allocation and how
Dollars Ex Machina
In late 2016, we were approached by a brilliant entrepreneur with an interesting investment opportunity. We mask the full details here to protect anonymity but believe us when we say this person has a knack for being incredibly early to
Decoding what it means to be truly decentralized.
Market drawdowns are often accompanied by feelings of doubt, uncertainty, and ambiguity of forward expectations. While no one has a crystal ball, we can use the information available to us to make our best estimations and probabilistic assumptions of what
The fall of FTX
In our view, FTX’s insolvency is one of the most damaging events—worse than the 2014 Mt. Gox hack—in crypto history. Caused by one of the revered leaders of the industry, this collapse could delay institutional crypto adoption by years and
Institutional Investor Digital Assets Study: Key Findings
With nearly six in ten institutional investors surveyed (58%) invested in digital assets globally, understanding how investors are engaging with the ecosystem is increasingly important. These key findings represent just a portion of the insights gleaned from the Fidelity Digital
Applying Machine Learning Portfolio Modeling to Bitcoin
Investors considering whether to add bitcoin to their multi-asset class portfolio face the challenge of how to think about both the impact of a bitcoin allocation and how to set and manage their exposure. A simple way to start can
Time for a Reset of the Crypto Opportunity
Disruptive behaviour by some should not be allowed to spoil the opportunity in digital ledger technology. Events of the past few weeks offer a cautionary tale to anyone following the crypto space. Blockchain technology and its resulting cryptoassets were built
The longer the base, the more powerful the breakout (or breakdown)
Long-term holders are trading at a loss proportional to that of previous market cycles, suggesting that, finally, the highest-conviction participants are experiencing …
Tug of war: bitcoin economics vs. Macroeconomics
Bitcoin’s on-chain activity suggests that holding behavior and network fundamentals are much stronger than its current price would suggest. Ethereum’s successful transition to proof-of-stake marks a monumental accomplishment for its ecosystem. An uncertain macro environment continues to weigh heavily on
September 2022 market recap & outlook
Silver lining: Following on the heels of August, September 2022 trended negatively for …
Quantifying The Potential Impact Of Bitcoin Mining On Global Methane Emissions
Using Bitcoin mining to combust leaking methane sources can eliminate 5.32% of all global emissions by 2045. This represents 23% of all global methane emissions: more than half the UNEP’s targeted reduction of methane of 45% by 2045. That means
Valuing Bitcoin
After investors have learned the basics of bitcoin, they often ask, “how is it possible to own an asset if they are unable to determine what its fair value should be?” Valuation methods vary widely across a variety of assets,
Why Bitcoin Is An Essential Part Of Every Esg Fund
If you’re a fund manager who is establishing an ESG policy, failure to consider Bitcoin in the mix is tantamount to gross negligence on your ESG obligations. If you’re a private investor, not investing in Bitcoin because it “uses energy”
All Eyes On The Merge
The Bitcoin Monthly With futures in backwardation and options open interest at an all-time high, ether is the most hedged asset in the crypto market as it transitions to …
Bitcoin: Why Environmentalists Need To Relax, It’s Better Than You Think
Bitcoin isn’t the great evil we have been led to believe. Until you’ve looked deeply into something, you’re not in a position to judge it, says Daniel Batten. For as long as I can remember, protecting the environment was my
7 Renewables Misconceptions
At our ESG fund, as part of our due diligence on Bitcoin Mining, we recently examined the 7 Most common ESG arguments against Bitcoin and found all of them to be untrue. Sometimes, the diametric opposite was the truth.
Bitcoin Mining Can Prevent Climate Change
2022 has changed everything that we in the environmental, social and governance (ESG) sector thought we knew about Bitcoin. We thought it was a net negative for the environment. We could not have been more wrong. It turns out that
The Renewable Grid Needs Bitcoin Mining
The 2 biggest problems with Solar & Wind are that they “don’t match where” and “don’t match when” most customers want it. These two problems lead to a plethora of other problems: curtailment, load balancing, voltage regulation, power wasted in
An Investor’s Guide to Crypto
In 2018, it was relatively easy for asset managers to ignore the cryptocurrency space. Bitcoin had crashed, losing over 80% of its value, and the new ecosystem was littered with failed initial coin offerings. It all looked like a fad.
Bitcoin: Knowledge and Perceptions
Bitcoin was originally created as a currency for the internet, where people could send and receive money without going through a financial institution. In recent years, the dominant narratives surrounding bitcoin have been solely focused on its potential as a
Crypto-Assets Activity around the World
On-chain crypto-assets transaction volumes have grown rapidly, particularly during the COVID-19 pandemic. Crypto-assets activity appears to be a global phenomenon, although it still remains modest relative to gross domestic product for most countries. Panel regressions across more than 130 countries
Navigating the volatility: Russia, Ukraine and bitcoin
In the face of these events, Bitcoin outperformed assets like oil, gold and US dollars. After heavy price drops to start 2022, the crypto market stabilised for some time until it was shaken by a sudden spike which saw overall
Why investors need to consider bitcoin separately from other digital assets
Once investors have decided to invest in digital assets, the next question becomes, “Which one?” Of course, bitcoin is the most recognized, first-ever digital asset, but there are hundreds and even thousands of other digital assets in the ecosystem. One
Why investors need to consider bitcoin separately from other digital assets
Once investors have decided to invest in digital assets, the next question becomes, “Which one?” Of course, bitcoin is the most recognized, first-ever digital asset, but there are hundreds and even thousands of other digital assets in the ecosystem. One
January market recap
A broader market sell-off caused market sentiment to weaken substantially in Jan., leading some to think that BTC could break critical support levels and slip into a bear market. Notwithstanding BTC’s underwhelming performance, BTC’s hashrate hit an all-time-high on Jan.
Why investors need to consider bitcoin separately from other digital assets
Once investors have decided to invest in digital assets, the next question becomes, “Which one?” Of course, bitcoin is the most recognized, first-ever digital asset, but there are hundreds and even thousands of other digital assets in the ecosystem. One
Alternatives under the microscope
Some alternative assets performed very well in 2021, especially private equity and Bitcoin. But we think 2022 will be very different with less growth but lots of policy tightening. Hence we expect a convergence of returns but still favour cyclical
Crypto in review
If 2020 was the The Year of the ₿ull, then 2021 was without a doubt the year crypto went mainstream. Last year, the cryptoasset industry experienced breakthroughs in adoption, regulation, policy, broader infrastructure development, technical upgrades, and on top of
The Aristotle List: 10 improbable but possible outcomes for 2022
Uncommon truths It is time to forget central scenarios and think about improbable but possible outcomes. Market sentiment is now mixed (thanks to the Fed), so our list of surprises contains something for everybody (these hypothetical predictions are our views
Bitcoin’s Place in Multi-Asset Portfolios
Whether Crypto is the new New World or a glorified Ponzi Scheme is a debate which gets people curiously animated. We deftly sidestep this fracas, and instead focus on how the related instruments could be used from an asset allocation
Securing Self-Sovereignty
Bitcoin's reputation as the soundest form of money is largely underpinned by its decentralized blockchain network. The network comprises globally distributed computers, known as “nodes,” that connect to each other and are run by anyone in the world with …
Chi on China
China bans Bitcoin, embraces dlt with ESG implications We don't have to sacrifice a strong economy for a healthy environment. Dennis Weaver SUMMARY China’s renewed crackdown on bitcoin aims at tackling the country’s problems of power shortages, climate control, creeping
Bitcoin: A Framework for Institutional Investors Considering an Allocation
New research from Fidelity explores bitcoin’s characteristics, potential benefits and risks, and other implementation considerations KEY TAKEAWAYS We believe bitcoin is an aspiring asset class in a period of price discovery. Like gold, bitcoin is a high-powered, opportunistic hedging asset
ESG-stimulans is keerzijde van China’s verbod op bitcoin
Sinds mei 2021 treedt China strenger op tegen het verhandelen en mijnen van cryptocurrency’s. China treedt hard op tegen o.a. bitcoin in een poging om problemen als stroomtekorten, klimaatschokken, financiële ontwrichting en de sluipende erosie van zijn soevereiniteit op het
ESG boost is flipside to China’s ban on bitcoin
China is cracking down on bitcoin in a bid to overcome problems such as power shortages, climate control, financial disruption and the creeping erosion of its monetary policy sovereignty. At the same time, Beijing is embracing distributed ledger technology (DLT)
Pictet AM – Webinar: Keerpunt 1971 – Hoe nu verder?
‘De komst van de euro en de bitcoin, de negatieve spaarrente, werkende armen, de spanningen met China, de crisis sinds 2007 en nog veel meer, blijken hun oorsprong te vinden in 1971 …’. Aldus Edin Mujagić, in zijn boek Keerpunt
Digital Assets: From Fringe to Future
In 1998, computer scientist Nicholas Szabo developed a novel, decentralized digital currency called “bit gold” based on a system mathematicians hypothesized nearly a decade prior. The development of this system was a precursor of what we know now as blockchain.2
Answers to your 5 biggest investment concerns
Markets have been climbing a wall of worry in 2021, reaching record highs even as investors brace for the possibility of elevated inflation, rising interest rates, runaway debt and a bitcoin bubble. With so much to trouble investors, many are
The inherent risks of crypto currencies – When bitcoin meets China’s CBDC
Increasing regulatory control, due to central banks protecting their economic policy sovereignty and national governments seeking to control climate change, is an imminent risk for cryptocurrencies. In particular, China’s official digital currency is ‘anti-cryptos‘. Cryptocurrency anonymity, notably in the case
Bitcoin is Key to an Abundant, Clean Energy Future
In this memo, we aim to explain how the Bitcoin network functions as a unique energy buyer that could enable society to deploy substantially more solar and wind generation capacity. This deployment, along with energy storage, aims to facilitate the
Multi-asset market outlook
While fixed income markets mainly remained under pressure, they were not the worst performing asset class in March. That honor went to commodities. After leading the way over the past months, commodities came under pressure in March. The decline was broad based. Crude oil lost …
The Role of Cryptocurrencies in Investor Portfolios
The role of cryptocurrencies as a vehicle for speculation has been well established. However, it is less clear if cryptocurrencies can also serve to manage risk. The authors seek to determine the diversification potential of cryptocurrencies both for short and
What do institutional investors think about #Bitcoin – Research Highlights
During the week of 15 of March, the bitcoin is nearing a new record high of 60.000 U.S. dollar. This unprecedented rise in price begs to wonder, what do institutional investors think about Bitcoin. In this article some of the opinions of institutional investors on bitcoin and cryptocurrencies in general will be shared.
De geheimen van de bitcoin
Het is geen toeval dat de bitcoin opnieuw in de belangstelling staat nu de bezorgdheid over de inflatie toeneemt. Dat komt omdat cryptomunten, waarvan de bitcoin de bekendste is, barometers zijn geworden van het sentiment over een agressief monetair beleid van de centrale banken en financiële repressie. De voorbije tien …
Bitcoin Discussion Paper
As Bitcoin hits new highs, we find that more reasons are being propagated as to why this cryptocurrency is the future of the monetary system. Many of these views and assertions seem vague and overly simplistic and hence we struggle to follow the logic of the analysis provided. On the other hand, we have studied the monetary system, which is also not simple because of the complex subject matter.
What is the problem with cryptocurrency (bitcoin)?
Bitcoin is again in the news. Some advocates of the cryptocurrency suggest its price is rising because bitcoin is challenging gold’s standing as the one supra-currency, the asset to own when fiat currencies are being debased. Does bitcoin offer something unique as …
‘Blue Wave’ and Crypto in our Best Read last week
Columbia Threadneedle Investments provides readers with an in-depth discussion of fixed income assets. One important takeaway is the Biden presidency causing rising inflation expectations.
Crypto Yields – Deep Dive on DeFi
The Decentralized Finance (DeFi) space has been all the craze this year, with an estimated value of over $11B locked in the DeFi lending market alone.1 It’s likely that you’ve seen new DeFi platforms with impressive annual percentage yields (APY) advertised for different cryptocurrencies …
Asset allocation and risk modeling of bitcoin in an institutional portfolio
Asset allocation and risk modeling of bitcoin in an institutional portfolio Bitcoin recently celebrated its twelfth birthday, but in historical terms it is still very much in its infancy as compared to other major asset classes. In this paper we
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