Tag Archives: Bitcoin

What’s Better Than Bitcoin? Companies That Dig Rocks (Seriously!)

We get a lot of questions about cryptocurrencies. Especially when there is upwards price movement. No one ever seems to ask about them when they are not performing so well… I always answer, that I cannot buy cryptocurrencies for clients, and that we are fully committed to finding profitable opportunities elsewhere.

One example is our investment in copper miners. Copper miners?!? Yes, copper miners.

Since the lows of March 16th, copper miners Freeport McMoRan and HudBay Minerals have actually outperformed Bitcoin:

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Bitcoin, Bitcoin and Bitcoin

Last night JPMorgan Chase CEO Jamie Dimon took a shot at bitcoin, saying the cryptocurrency “is a fraud.”

Here’s the article: JPMorgan CEO Jamie Dimon says bitcoin is a ‘fraud’ that will eventually blow up

In the same time, people from the tech world are saying that “Bankers’ mistrust of bitcoin is still the greatest argument for it.”

Link: Bankers’ mistrust of bitcoin is still the greatest argument for it

Furthermore, Financial Times is posting graphs with a bubble forming pattern overlaying the Bitcoin price

Source: Charts that matter: Price of bitcoin set for a painful reckoning

Our take:

Bitcoin and crypto currencies is a hot topic right now. Most media outlets have to say something about the subject. That’s fine but how important Bitcoin really is?

Traditional asset managers for now cannot include in their portfolios cryptocurrencies. Bitcoin can rarely be used as a means to pay for goods in transactions. In most cases when vendors accept bitcoin as a payment they’re really using a third party service that deals with the bitcoin and pays the vendor in hard currency.

Most of the action is provided by individual investors. We can ask ourselves how many people we now that have some bitcoin? Our guess  – none. Situation may differ if you’re from thech industry. So is it really relevant?

To sum up, we view bitcoin as a new hot topic and probably a bubble, though our only strong position is that we don’t consider it for investments.

Note: Blockchain as a technology is a different topic that may prove to be very useful. read more