The recent disclosure by Wall Street investor Paul Tudor Jones that his Hedge Fund will start trading bitcoin futures to gain an exposure to bitcoin of approx 2% of their total investment portfolio made the financial headlines the past week. What was little discussed though where the reasons that caused Tudor Jones to take such an important and still contrarian investment step for a highly respected institutional investor on Wall Street.
To put things in the right perspective Paul Tudor Jones is not a Millennial. He is a Baby Boomer, a veteran Wall Streeter. Someone who got big in the ´80s at the time when Michael Milken and Ivan Boesky roared Wall Street and inspired the Hollywood fictional characters of Gordon Gekko and Buddy Fox in the Wall Street movie. Under that light his opening to bitcoin is even more remarkable, simply because digitization and cryptocurrencies — for one of his age (don´t mean to be disrespectful, I am myself close that age group as well) — are not exactly in the DNA. Rather, it requires both an open mind and much critical thinking to...
Being a philanthropist — someone who promotes human welfare or donates funds for humanitarian purposes — is not as easy as one might think. Some — despite calling themselves “philanthropists” — spend huge sums to rather advance their own political-societal ideologies in a sacred-mission to prevail over those not in agreement. Clearly this has nothing to do with philanthropism and much to do with lobbying and promoting its own hidden political, geo-political and economical agendas, just like the Soros Open Society Foundations does.
Others — like Bill and Melinda Gates —
The uncertainties surrounding the evolution of the Covid-19 pandemic and its impact on the global economy are gripping both the people and the markets with fear. A global recession is now the best case outcome also for JP Morgan while Goldman Sachs foresees the possibility of a second great depression. There are currently few data available. It´s too early to ascertain the damage inflicted to China´s economy, which is still struggling to restart after its economic engine province Hubei grinded to a halt after the city of Wuhan was first put into lockdown on the 23rd of January. The spreading of the virus seems now under control in China, but the economical damage still needs to be assessed.
Italy’s lock-down measures are estimated to have hit tourism and transport activity by 90%, retail by 50%, and ...
While Bloomberg has celebrated the best decade in history for financial returns, it is not a coincidence that the wealth inequality has reached proportions not seen since the roaring´20s. And while this does not seem to concern the financial elites - who celebrated another fat end of the year - this is in reality a major concern for all the others, the 99,..%ers. This has created all sorts of distortions, not only in the economies and in financial markets but also in political systems of countries which were traditionally considered as the most democratic forms of government around the globe, such as the USA and the EU. The massive amount of wealth concentrated in few hands tends to manipulate the markets and to corrupt political systems globally, so much that today it is impossible to see a normally functioning (i.e. not manipulated) financial market or a truly democratic form of government. This "cancer" has spread fast in the USA and throughout the EU.
I love sports and I thank my dad for teaching me its precious values. I have done it all my life since I was 5 or 6 and still do it, everyday, well...almost. And to watch, there is nothing better than American sports. And this is not about the sport itself - for instance I love watching rugby which is not big in the US - but it is about the ability that Americans have to put up an outstanding show, a great entertainment. Nothing equals superb spectacles such as the Super Bowl, the NBA Playoffs or a big UFC bout.
Above all American sport has always been big business. Big money was involved well before it did anywhere else in the world. In that respect the tokenization - which can be used as an effective vehicle to raise finances - is a technological development which will impact heavily the future of fund raising also in the sport business. And I am sure we will soon see the first examples of tokenization in the Sport business.
It is a fact that from 2018, institutional money has started to flow into the crypto sector at an increasing pace. I wrote about it here and this was recently confirmed by Coinbase CEO. To remain bullish on the sector though, it is vital to understand whether this money inflow will continue in the short to medium term and what are the main reasons driving the inflow.
There are different reasons. I have analyzed in this article why bitcoin is by all means a digital version of gold and the reasons why the whole crypto sector is worth investing into. But the fact that an asset class is a good investment opportunity for any number of reasons, does not necessarily mean that that investors will buy it. There must be a catalyst to drive money into that assets class. Then we must understand why the big money, which is on the verge of what Ray Dalio defines a paradigm shift in investing, will be inevitably driven into precious metals and - my take - into the crypto sector as well.
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