Cryptocurrencies

-The current monetary system dictates that Base Money which is the amount of money actually issued by the Central Bank of a country. This very mechanism allows the Central Bank to make billions in profit from running a huge balance sheet which is financed for free by the public. The profits are transferred to the government and are a form of tacit taxation. The very same mechanism allows the Central Bank to print an additional and unlimited amount of Base Money and purchase with it higher yielding assets and potentially increase its profits.

-In my opinion it is the very monopoly of the main source of financing that gave the banks such power, and which led to them being able to invest our money in what turned out to be very risky and concentrated assets, which led to massive losses in some years, which were borne partly by the governments.-However, cryptocurrencies may offer a solution to this problem! Unlike a regular currency, which as explained is a liability and a source of free financing to the Central Bank and the Commercial Banks, the owners of Bitcoins on the Blockchain Ledger are owning it outright without financing anyone.

 

 

                                                   Confirmed Transactions per Day in Bitcoins

-As opposed to Fiat Currency, the amount of Bitcoins grows at a predefined, finite rate. As a result the value of Bitcoins and other cryptocurrencies in general will eventually increase as the number of confirmed transactions increases.

Fund Holdings

-The Fund allocated roughly 10% of its capital to assets denominated in Bitcoin and earns an interest on these assets, about 8-10% net, which is denominated in Bitcoin as well.