The volatile nature of the cryptocurrency market might seem daunting for individual investors. While some believe Bitcoin to be the next global currency, others remain weary.
For example, the judges on the popular ABC show Shark Tank, Kevin O’Leary and Robert Herjavec, recently sat down with Fortune to share their thoughts on Bitcoin investments. When asked about investing in cryptocurrency, O’Leary mentioned that he is a fan of digital money, but has some reservations.
“When you can pay your taxes in Bitcoin, it will become a global currency, and that’s why I own it,” O’Leary told Fortune.
Many of today’s “traditional crypto” hedge funds focused on trading cryptocurrencies take a number of different individual approaches to ensure profits.
“I trade almost exclusively OTC (over the counter) to minimize risk,” said Arianna Simpson, founder and managing director of the crypto hedge fund Autonomous Partners.
Decentralized hedge funds, however, take a different approach that is based on resource sharing and community profits, made possible through the application of blockchain technology.
“A decentralized hedge fund is a crowd sourced hedge fund, where the fund allocation is selected by the crowd, not a hedge fund manager. Blockchain technology provides trust in a trustless environment and ensures that everyone can participate in the consensus,” said Michael Yuan, Chief Scientist at CyberMiles Foundation. "Just look at Bitcoin. No one on the network trusts each other, but they all trust the protocol. As a result, they also trust the account balances on the blockchain.”
https://www.forbes.com/sites/rachelwolfson/2018/02/28/decentralized-hedge-funds-ripe-for-volatile-cryptocurrency-market/#550abab5477f
For example, the judges on the popular ABC show Shark Tank, Kevin O’Leary and Robert Herjavec, recently sat down with Fortune to share their thoughts on Bitcoin investments. When asked about investing in cryptocurrency, O’Leary mentioned that he is a fan of digital money, but has some reservations.
“When you can pay your taxes in Bitcoin, it will become a global currency, and that’s why I own it,” O’Leary told Fortune.
Many of today’s “traditional crypto” hedge funds focused on trading cryptocurrencies take a number of different individual approaches to ensure profits.
“I trade almost exclusively OTC (over the counter) to minimize risk,” said Arianna Simpson, founder and managing director of the crypto hedge fund Autonomous Partners.
Decentralized hedge funds, however, take a different approach that is based on resource sharing and community profits, made possible through the application of blockchain technology.
“A decentralized hedge fund is a crowd sourced hedge fund, where the fund allocation is selected by the crowd, not a hedge fund manager. Blockchain technology provides trust in a trustless environment and ensures that everyone can participate in the consensus,” said Michael Yuan, Chief Scientist at CyberMiles Foundation. "Just look at Bitcoin. No one on the network trusts each other, but they all trust the protocol. As a result, they also trust the account balances on the blockchain.”
https://www.forbes.com/sites/rachelwolfson/2018/02/28/decentralized-hedge-funds-ripe-for-volatile-cryptocurrency-market/#550abab5477f
The development of blockchain technology is a big step forward in terms of accountability and that will help with hedge funds as well as many other things. With the blockchain all transactions for these funds can be traced and so investors can easily track their investment and settle any disputes.