China Fund News reporter Lang Yuexhang
People in the fund community tend to be particularly sensitive to investment, and this sensitivity is not limited to the traditional field, but also exists in the field of innovation. There are a number of people in the fund circle who started the research and investment of blockchain and virtual currency early, and some people have already gained huge profits, and the number of people who start to engage in this investment research is increasing.
The fund circle is busy with coin speculation
There is a wealth story circulating in the Los Angeles fund circle. There is an employee of a fund company, usually engaged in the middle and back office support work, quit some time ago, because in the past few years he realized financial freedom through the currency speculation, and went back home to enjoy life.
Now a popular saying: “currency circle one day, the stock market one year.” In recent years, there have been a lot of myths about getting rich in the currency circle, and the fund circle is particularly sensitive to investment. Therefore, many people in the fund circle have been exposed to the virtual currency investment early. One private equity investor told reporters that he started mining with his home mining machine back in 2010, when bitcoin was still only a few dollars. A number of fund industry insiders told reporters that they have invested in bitcoin in the past few years, some of the highest holdings are very large, but most of them sold early.
There is a private fund manager told reporters that he is now very busy, every day to see the stock market, but also to see the virtual currency board, the stock market, the currency market can not delay.
There are young private equity fund newcomers, just into the private equity, the original plan to follow the traditional path of progression, from researcher to fund manager assistant to fund manager, gradually realize the value of life, but did not think, only a year later, he directly entered the new stage of life through the currency speculation, and now go home full-time to do virtual currency investment.
Some private equity fund managers, in addition to the study of traditional investment targets, began to invest in virtual coins early. One village investment manager Li Zhen is one of them, he told reporters that he had invested in bitcoin around 2012, now he has been concerned about blockchain technology and related policies, he believes that Singapore and other countries in the “sandbox” regulatory framework to provide financial and technical services worth reference.
More and more people are jumping on the blockchain
As virtual currency investments are private, there are not many public fund companies that openly and widely talk about virtual currency investments. Some fund managers told reporters that those interested in digital currency investment in the company will generally only discuss it privately, and the number of people who are really interested is not much.
At the same time, due to the wide range of blockchain, different people have different interests in blockchain. Some fund managers are more interested in investing in virtual currencies, others are more inclined to join the blockchain business and do blockchain projects, and some fund managers choose to jump ship to blockchain enterprises.
Previously, Industrial Securities TMT chief analyst dollars Yuming jumped to Huobi as the director of the blockchain Research Institute, once caused industry attention, but in fact, such job jumps are becoming more and more frequent.
Some insiders said that he has observed that driven by the money-making effect of blockchain, more and more people from other industries have entered the blockchain industry, and among them, the job-hopping of people from the financial industry is increasing. He believes that the gathering of such professionals will help the blockchain industry develop to a more professional direction.
Money managers don’t share Buffett’s view of bitcoin
In view of the risks of virtual currency trading, the central bank began to clean up all kinds of virtual currency trading institutions in September last year. Last month, the central bank announced that all domestic exchanges had been cleaned up, and now these virtual currency exchanges have all moved overseas.
In this regard, many investment giants have prompted the risk of virtual currency investment. Buffett, Soros in public have pointed out the risks of such cryptocurrency, Buffett more bluntly, this kind of virtual currency can only expect someone to take over, is a drumbeat to pass the flower game, ultimately will not have a good result. And recently Ma also publicly said, pointing to the current bitcoin is a bubble.
Some money managers who invest in bitcoin disagree. One investment manager told reporters that bitcoin is considered a gold-like alternative to virtual currencies in the cryptocurrency market. He analyzed that because the total number of bitcoin is constant, while the mining cost will only get higher and higher, there is a relatively simple valuation standard for Bitcoin, that is, the mining cost. At present, the mining cost is about 9000 USD/piece. However, due to the recent continuous decline in the price of bitcoin, the current price of Bitcoin is lower than the mining cost.
Another money manager said Buffett’s disapproval of digital currencies was similar to his disapproval of tech stocks in previous years. But at the same time, he also believes that the current virtual currency market is mixed, all kinds of speculation, ownership behavior emerge in endlessly, and a large number of virtual coins exist obvious bubble phenomenon.
Li analyzed the different types of cryptocurrencies to reporters. He said that the current mainstream virtual currencies can be roughly divided into three categories according to the guidelines of the Swiss Financial Market Supervision Authority (FINMA). One is the payment category. For example, digital currencies like Bitcoin have no further functions except certain payment functions, and their properties are similar to commodities and gold. One is application, which is the digital certificate for non-financial applications or services. For example, Ethereum and EOS realize their functions by building blockchain platform and building blockchain infrastructure. Another type of digital certificate is the asset type, such as representing the right to physical objects, companies, earnings, participation in dividends or interest payments, which are standardized digital certificates. Because of the different functions, the way to value these coins is also different.
He believes that, from the perspective of investment, virtual currency investment is a very high risk investment, need to do a good job of risk control, and diversification of investment and asset allocation.
There are many stories inside the coin circle
In fact, it was the tech community that recognized the value of blockchain earlier than the investment community. “People in the technology circle are the first to get rich, because the blockchain technology threshold is high, only those who understand the technology really understand.” Some people in the fund industry told reporters, “And for people in the investment industry, blockchain has quite a high technical threshold, investment people are actually very difficult to understand. So there are still very few people doing it.”
Speaking of the story of the coin circle, many early participation in the virtual currency investment manager said he had witnessed the wealth of people around him, but at the same time, there are fund managers also pointed out that although the coin circle has a lot of stories of getting rich, but in fact every person through the coin circle rich are not simple. “What the outside world sees is the myth of getting rich overnight in the currency circle, but the hard work of those who get rich is invisible to the outside world.”
Each early participant has many stories to tell. There is a story about an early miner who lost tens of thousands of bitcoins a few years ago and missed the chance to become very rich. But not long ago, he invested in a niche virtual coin that rose 10,000 times in a year.
There is another story that is very reminiscent of “closed-end funds”. The story goes like this: the founding team of each virtual coin keeps some for itself, but the founding team tends to sell too early. There was a founding team of virtual coins that had a certain period of lockdown, no one could sell until the ban was lifted, and as a result, everyone on the team issued them.
Investment must be prepared to go to zero
There’s more to coin than comedy.
According to industry insiders, there are many young investors due to the investment understanding is not deep, only see the virtual currency boom side, but do not know the risks, often suffer huge losses. Moreover, because some virtual currency exchanges also offer leverage, and virtual coins are highly volatile, it is easy for speculators to sell out. Previously, there was a typical case reported by the media. A college student not only lost all the tuition fees and living expenses given by his father because of leverage, but also owed a large amount of debt, which was difficult to repay.
In recent days, the virtual currency market has shown a general trend of decline, a high buy of new players told the fund Jun, in a short period of half a month, in the absence of any leverage, his investment has been cut in half.
In fact, in our interviews, fund managers found that many investors emphasized the same thing: When you’re considering allocating some virtual currency to assets, you have to think hard about whether you can live with it if it all goes to zero.
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