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Topic: [ANN] Hedge Fund Indirect Investing (Read 975 times)
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Is there a plan to corner the bitcoin market? 500,000 coins 
So let me get this straight. Are you investing in something using bitcoins directly, or are you planning to cash out to fiat in order to make your investment? Because I don't know of any large markets that take BTC directly.
So if we take the worst case scenario: suppose someone actually came up with 500k bitcoins; do you actually have another 500k to match them? And furthermore, there is no possible way that the market depth could handle a 1,000,000 BTC sale.
So if we take the worst case scenario: suppose someone actually came up with 500k bitcoins; do you actually have another 500k to match them? And furthermore, there is no possible way that the market depth could handle a 1,000,000 BTC sale.
Good questions.
The hedge fund has a bitcoin wallet that will be used for transactions; however, it's more of a symbolic first step with bitcoins. They're just testing the waters at this point. The bitcoins will have to be converted to fiat to accomodate the fund's brokers/services providers.
In the hedge fund world, most quants are at least aware of bitcoin, but the fund managers, accountants, compliance officers, etc are mostly clueless.
I can only match funds up to about 10,000 bitcoins (that's my risk tolerance threshold). Beyond that, the only other thing I can offer an investor is a little more information about what's going on behind the scenes.
And if the numbers get large enough, which I highly doubt, I'll offer some tranching and escrow choices.
So let me get this straight. Are you investing in something using bitcoins directly, or are you planning to cash out to fiat in order to make your investment? Because I don't know of any large markets that take BTC directly.
So if we take the worst case scenario: suppose someone actually came up with 500k bitcoins; do you actually have another 500k to match them? And furthermore, there is no possible way that the market depth could handle a 1,000,000 BTC sale.
So if we take the worst case scenario: suppose someone actually came up with 500k bitcoins; do you actually have another 500k to match them? And furthermore, there is no possible way that the market depth could handle a 1,000,000 BTC sale.
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