Author

Topic: Hedgeable Offers 'Free Bitcoin to Every American' (Read 1284 times)

legendary
Activity: 3668
Merit: 6382
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Interesting thng that only Americans are eligible for the free BTC...
However, it's only marketing blah-blah...
newbie
Activity: 16
Merit: 0
If i want to invest $25000 i would use the money to invest into my own account. What is the rational of giving money for someone to buy on your behalf when i can do it myself.
This is primarily for people who do not already own bitcoin and are new to it. Hedgeable is an investing firm, we manage people's money. The rationale is the same as anyone in America who goes to someone like an advisor to manage their money. The bitcoin is in addition to that.
There are plenty of other ways that people can invest their money, and with more reputable companies. At current exchange rates, your "deal" works out to ~1.25% "bonus" if someone invested the minimum $25,000 investment, however your fees will likely eat up most if not all of that.
Our fee on $25,000 would be 0.75% wrapped annually, which includes our management fee, custodial charges, trading costs, our live analytics platform, support, etc. This is somewhere around half of what you'd pay for a traditional managed account, and it would scale down much more with a higher asset size. We give you risk management and downside protection that you will not get anywhere else unless you are extremely wealthy or pay 2-and-20 fees.

The return on the free bitcoin alone could certainly outpace our fee structure over an extended period.
There is still the issue of being able to trust you. I really don't see any advantage in using your service over using second market bitcoin investment trust as the cost of both investments is essentially the same.

Also for larger investors who invest more then in 25k minimum will end up with a negative return on their bonus as the bonus will be less then your "fee"
We do not invest clients just in bitcoin. We are an asset management firm who invest you in a diversified portolfio of stocks, ETFs, etc., which is clearly explained on our website. Bitcoin would be a small piece of that diversified portfolio.

In that regard we are not competing with SecondMarket on any level, especially cost.
full member
Activity: 139
Merit: 100
The title should be changed to "1 BTC for every eligible client", not "every American".

He is claiming 375 million "potential clients", so it would still sound like a scam. I do realize that it is marketing hyperbole but we are the wrong audience for it.

As for the 0.75% expense ratio - I could just buy an ETF and get good diversification for 0.15%-0.40%, depending on the ETF.

Yes, there are certainly people for whom an actively managed portfolio (managed by somebody other than themselves, I mean) is the preferred solution. They are also probably the kind of people on which marketing hyperbole would work better. I am just pointing out that the audience here, which mostly tends to have libertarian and individualistic views isn't the proper target for it and just mentioning "FREE bitcoin!" in the advertisement isn't enough to convince the people.

Quote
If the response to this promotion caused an issue where we were purchasing all of the available supply, the price would skyrocket.

Apparently, besides Bitcoin, you don't understand economics, either. If you had to purchase all the available supply, you'd go bankrupt and still fail to fulfill your promise.

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We could always continue giving people a few bits and that would still be a substantial value for investors.

In other worse, you would have lied to them. You would have been liable for false advertisement at the very least. I suggest that you seriously re-thing your strategy. In any case, everything you have said here on this subject has firmly convinced me not to give any of my money in your care.
sr. member
Activity: 350
Merit: 250
If i want to invest $25000 i would use the money to invest into my own account. What is the rational of giving money for someone to buy on your behalf when i can do it myself.
This is primarily for people who do not already own bitcoin and are new to it. Hedgeable is an investing firm, we manage people's money. The rationale is the same as anyone in America who goes to someone like an advisor to manage their money. The bitcoin is in addition to that.
There are plenty of other ways that people can invest their money, and with more reputable companies. At current exchange rates, your "deal" works out to ~1.25% "bonus" if someone invested the minimum $25,000 investment, however your fees will likely eat up most if not all of that.
Our fee on $25,000 would be 0.75% wrapped annually, which includes our management fee, custodial charges, trading costs, our live analytics platform, support, etc. This is somewhere around half of what you'd pay for a traditional managed account, and it would scale down much more with a higher asset size. We give you risk management and downside protection that you will not get anywhere else unless you are extremely wealthy or pay 2-and-20 fees.

The return on the free bitcoin alone could certainly outpace our fee structure over an extended period.
There is still the issue of being able to trust you. I really don't see any advantage in using your service over using second market bitcoin investment trust as the cost of both investments is essentially the same.

Also for larger investors who invest more then in 25k minimum will end up with a negative return on their bonus as the bonus will be less then your "fee"
sr. member
Activity: 434
Merit: 250
The title should be changed to "1 BTC for every eligible client", not "every American".
legendary
Activity: 1260
Merit: 1116
Great! Just great Smiley
newbie
Activity: 16
Merit: 0
If i want to invest $25000 i would use the money to invest into my own account. What is the rational of giving money for someone to buy on your behalf when i can do it myself.
This is primarily for people who do not already own bitcoin and are new to it. Hedgeable is an investing firm, we manage people's money. The rationale is the same as anyone in America who goes to someone like an advisor to manage their money. The bitcoin is in addition to that.
There are plenty of other ways that people can invest their money, and with more reputable companies. At current exchange rates, your "deal" works out to ~1.25% "bonus" if someone invested the minimum $25,000 investment, however your fees will likely eat up most if not all of that.
Our fee on $25,000 would be 0.75% wrapped annually, which includes our management fee, custodial charges, trading costs, our live analytics platform, support, etc. This is somewhere around half of what you'd pay for a traditional managed account, and it would scale down much more with a higher asset size. We give you risk management and downside protection that you will not get anywhere else unless you are extremely wealthy or pay 2-and-20 fees.

The return on the free bitcoin alone could certainly outpace our fee structure over an extended period.
sr. member
Activity: 350
Merit: 250
If i want to invest $25000 i would use the money to invest into my own account. What is the rational of giving money for someone to buy on your behalf when i can do it myself.
This is primarily for people who do not already own bitcoin and are new to it. Hedgeable is an investing firm, we manage people's money. The rationale is the same as anyone in America who goes to someone like an advisor to manage their money. The bitcoin is in addition to that.
There are plenty of other ways that people can invest their money, and with more reputable companies. At current exchange rates, your "deal" works out to ~1.25% "bonus" if someone invested the minimum $25,000 investment, however your fees will likely eat up most if not all of that.
newbie
Activity: 16
Merit: 0
If i want to invest $25000 i would use the money to invest into my own account. What is the rational of giving money for someone to buy on your behalf when i can do it myself.
This is primarily for people who do not already own bitcoin and are new to it. Hedgeable is an investing firm, we manage people's money. The rationale is the same as anyone in America who goes to someone like an advisor to manage their money. The bitcoin is in addition to that.
Q7
sr. member
Activity: 448
Merit: 250
If i want to invest $25000 i would use the money to invest into my own account. What is the rational of giving money for someone to buy on your behalf when i can do it myself.
hero member
Activity: 700
Merit: 500
"The company's Plus Program requires a minimum $25,000 investment, and associated fees can be paid with bitcoin."

Yep with that much minimum investment they can definitely offer 1 BTC to everyone that signs up with them

The company's Plus Program requires a minimum $25,000 investment, and associated fees can be paid with bitcoin. Bitcoin investments are currently not available with its $5,000 basic investment program.

"The average client with us has $250,000, that's actually the average account size in America. However, if you have $200,000, you're really in the dark, most high-quality investment solutions are $250,000 and up," he said.
newbie
Activity: 16
Merit: 0
"The company's Plus Program requires a minimum $25,000 investment, and associated fees can be paid with bitcoin."
We would go bankrupt quickly if we were doing this for people who are not clients. There is no intended misdirection here on our end.

We think our investing products are better than what you can get elsewhere, which is why we exist in the first place, and we also support bitcoin to its fullest extent in a genuine way.
newbie
Activity: 16
Merit: 0
So, this guy promises one free bitcoin to each of his potential 375 million investors? Either he does not understand Bitcoin, or his arithmetic sucks, or he is full of it. In either case, do you really want such a person to run your money? I know I don't.
Clearly there are not enough bitcoin for everyone to have ONE, but this is a great problem. If the response to this promotion caused an issue where we were purchasing all of the available supply, the price would skyrocket. We could always continue giving people a few bits and that would still be a substantial value for investors.
legendary
Activity: 1148
Merit: 1014
In Satoshi I Trust
"The company's Plus Program requires a minimum $25,000 investment, and associated fees can be paid with bitcoin."
full member
Activity: 139
Merit: 100
So, this guy promises one free bitcoin to each of his potential 375 million investors? Either he does not understand Bitcoin, or his arithmetic sucks, or he is full of it. In either case, do you really want such a person to run your money? I know I don't.
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