In their 2020 macro outlook investor letter, The Great Monetary Inflation, investment legend Paul Tudor Jones and his head of research Lorenzo Giorgianni set out several arguments for a surge in inflation and identified ten strategies that have historically performed well in an inflationary environment.
They concluded, “If forced to forecast the fastest horse, it would be bitcoin. It is the quintessence of scarcity premium. It is literally the only large tradable asset in the world that has a known fixed maximum supply”.
The popularity of crypto and digital assets is growing at a breathtaking pace with private and institutional investors alike. Retail interest has been spurred by the availability of cryptocurrencies on payment platforms such as Revolut, Monzo, Square
In early 2019, a senior Goldman Sachs
A year on and Nickel Digital Asset Management has become Europe’s largest digital asset arbitrage manager with an enviable performance track record. Nickel is expanding and seeking to professionalize the complex and opaque world of crypto assets, exploiting a rich arbitrage opportunity set against a long-term inflationary and currency debasement outlook.
While there is growing interest in digital assets from family offices, mainstream institutions, pension funds, and insurance companies, the most recent development involves forward-thinking U.S. corporates investing part of their long-term treasury cash holdings in bitcoin.
Microstrategy, a Nasdaq-listed company, recently purchased $425 million of Bitcoin as a long-term strategic asset followed in early October by Square who announced the purchase of $50 million of Bitcoin, one percent of its total assets. Shortly afterwards New York-based Stone Ridge Asset Management, a firm with $10 billion in assets under management, disclosed $115m of long-term Bitcoin holdings.
Unfortunately, numerous technical issues and shortcomings on corporate allocation were noted by both Microstrategy