The Fundening? Quarter Billion Dollar Gold Fund is Buying Bitcoin
Get link
Facebook
X
Pinterest
Email
Other Apps
A Bloomberg interview has revealed Old Mutual Gold & Silver Fund has set aside roughly 11 million USD from its holdings since spring of this year to purchase the world’s most popular cryptocurrency, bitcoin. It’s another feather in the decentralized currency’s cap, even as debate rages as to whether it will ever supplant gold’s tradition of being a hedge against tough economic times. http://wabbo.org
Bitcoin Paving Way for Reintroduction of Gold as Global Money
Ranjeetha Pakiam reports: “The Old Mutual Gold & Silver Fund, which manages $220 million of mostly precious metal equities, is jumping on the bitcoin wagon.”
Fund manager Ned Naylor-Leyland explained to Ms. Pakiam how they’ve been gobbling up bitcoin since April “with a mandate to allocate as much as 5 percent to cryptocurrencies,” Ms. Pakiam writes.
A response back in 2015 from the fund manager, to an individual who viewed bitcoin as too volatile.
“Bitcoin is paving the way for the reintroduction of gold as global money,” Mr. Naylor-Leyland surmised. Rather than viewing bitcoin as a threat to the precious metal, he instead views it as a way to educate investors. “Bitcoin was explicitly designed to be digital gold. So if you’re going to have a small proportion of a fund in bitcoin, it should be in a gold fund, because that’s exactly the point.”
It’s a curious end-run toward a broader goal, but no one would blame the fund. Bitcoin is up hundreds of percent this year. And since the fund’s reported buying spree in April, the digital currency has risen from just over 1,000 USD to the current floor of above 8,000 USD.
The historic metal has thudded along comparatively during the same interval, up $40 as of this writing.
Bitcoin a Way to Sound Money
“Bitcoin and blockchain resolve” divisibility problems, Ms. Pakiam writes of the fund manager’s thoughts, “[problems of] ownership and speed of transmission.”
“We’re going to revert to sound money,” Mr. Naylor-Leyland is quoted. “If you imagine sound money and blockchain together, there’s quite an exciting potential outcome.”
It’s a novel approach to bitcoin, for sure. Crypto maximalists suggest it’s simply a matter of time before the digital currency overtakes gold’s position. And as well as bitcoin has done in less than a decade, the precious metal has a four millennia headstart.
Something on the order of over 5 billion ounces presently exit, and with an ounce trading above 1,200 USD, that pegs it at a 7 trillion USD market cap, close to 100 fold better than present bitcoin valuations.
Still, the better bet seems to be understanding a larger point: the metal’s limitations were the inspiration behind bitcoin’s creation in terms of scarcity, mining, and utility. They’re not mutually exclusive though: both are preferable to the whims of government fiat, sound money advocates urge.
How to close out a banner year of television? With a lot more where that came from, of course. Here are ELLE.com's picks for fire TV during the cold months (you can't watch holiday specials forever, you know).
1 The Marvelous Mrs. Maisel , Amazon (November 29)
Look, we've been waiting to lay eyes on The Marvelous Mrs. Maisel for a while: The combination of Amy Sherman-Palladino at the helm and a housewife who breaks free of domestic life (and the most feckless husband imaginable) will make for breezy comedy with a steel spine. Cold weather be damned; this is the perfect cozy comedy with a dangerous edge of outrage. http://tvtime.me
2 The Crown , Season 2, Netflix (December 8)
Tensions are high in Buckingham Palace as we return to England's royals for another round of power, tenacity, and intrigue—all on a world stage. Queen Elizabeth wages an internal war with her secret-harbouring husband, while Princess Margare...
Why don’t planes crash more often from mechanical failure? With all the moving parts inside a plane, it seems that something would break fairly easily. So, why doesn’t that happen? One primary reason: checklists.
Before pilots push the button for taxiing and take-off, they perform an extensive pre-flight checklist to make sure everything is functioning exactly as it should be.
Entrepreneurs hoping for strong SEO (search engine optimization) rankings might take a lesson here. They can create a checklist of their own to make sure everything is perfect for their next website article. No, an SEO checklist won't protect you from crashing and burning. But it will help ensure that your post has the best chance it needs to rank high in Google. http://sergethibodeau.com
So, before you publish your next piece of web content, run it through the following 9-point checklist for the best SEO tips.
1. Pick a good keyword to focus on.
The first step is to simply pick th...
What if Macbeth was not really written by William Shakespeare, and a group of people has been suppressing this truth for hundreds of years? What if the moon landing were a hoax created by network executives to boost television ratings? What if an alien spacecraft really did crash in Roswell, New Mexico in the 1940s and the government has hidden the evidence all these years? For that matter, what if all the conspiracy theories are true?
The word conspiracy could be defined as “a secret agreement between or among multiple parties that exists to conduct unlawful behavior.” Do some conspiracies exist? Of course. Conspiracies have existed at many levels of society over the years. Both Old and New Testaments speak of conspiracies, and several popes have written about conspiracies in official documents. For instance, in 1937’s Divini Redemptoris , Pope Pius XI wrote about a “conspiracy of silence” regarding communism. In 1995’s Evangelium Vitae , Pope Saint John Paul II wr...
A Bloomberg interview has revealed Old Mutual Gold & Silver Fund has set aside roughly 11 million USD from its holdings since spring of this year to purchase the world’s most popular cryptocurrency, bitcoin. It’s another feather in the decentralized currency’s cap, even as debate rages as to whether it will ever supplant gold’s tradition of being a hedge against tough economic times. http://wabbo.org
It’s a novel approach to bitcoin, for sure. Crypto maximalists suggest it’s simply a matter of time before the digital currency overtakes gold’s position. And as well as bitcoin has done in less than a decade, the precious metal has a four millennia headstart.
Something on the order of over 5 billion ounces presently exit, and with an ounce trading above 1,200 USD, that pegs it at a 7 trillion USD market cap, close to 100 fold better than present bitcoin valuations.
Still, the better bet seems to be understanding a larger point: the metal’s limitations were the inspiration behind bitcoin’s creation in terms of scarcity, mining, and utility. They’re not mutually exclusive though: both are preferable to the whims of government fiat, sound money advocates urge.
Comments
Post a Comment