On Bitcoin and Cryptocurrencies
Having spent the last year or so digging deep into Bitcoin, Ethereum, and Crypto in general, thought it would be a good time to put down my thoughts on the current hype.
Bitcoin is for real:
As a store of value and non-correlated asset, BTC is for real. Most importantly, 2017 is the turning point for Bitcoin — as more and more family offices and high net worth individuals seek entry into this space — the building blocks will be ready in 2018 to allow enormous inflows into the currency. Within the next few weeks, both the CME and CBOE will have launched BTC futures — which will substantially add to the liquidity of the market. Goldman Sachs is exploring setting up a trading operation in BTC. And at the Consensus: Invest conference last week I saw multiple custodial solutions that will finally (hopefully) enable broad based institutional investing in this asset class. Talk to any financial advisor and they are fielding multiple calls a day from clients looking to get into this asset. There is a huge wave coming in 2018. And as one of the conference speakers Michael Novogratz said, unlike oil, when if it goes to $150 all of a sudden you invest in fracking, with Bitcoin, supply is limited and cannot be increased without consensus (51% of the miners).
Further evidence of 2017 as a turning point is the plethora of hedge funds investing in crypto — over 90 (!) as of this writing. And many of the top VC funds in the country have also invested in these hedge funds — as a way to get crypto exposure without needing to solve the custodial issues….