exante: practical aspects of algorithmic trading. bitcoin hedge fund. sse riga lecture 23.01.2014....
TRANSCRIPT
Practical aspects of algorithmic trading.Bitcoin hedge fund.
Gatis Eglitis, Managing PartnerSergey Troshin, Ph.D., Head of IT Strategy and Operations
Part 3: Bitcoin fund
EXANTE
1. 2010 - EXANTE ATP & BO, strong IT focus2. 2011 - Maltese brokerage licence3. 2012 - Hedge fund platform & bitcoin fund
The use of money is all the advantage there is in having money.
Benjamin Franklin
Money1.Durable2.Portable3.Fungible4.Intrinsic value
1.Store of value2.Medium of exchange
3.Unit of account
Aristotle IV BC
W.S. Jevons XIX AD
Money history1. before XI BC - barter2. XI BC, China - bronze knives and spades3. VI BC, Lydia - electrum coins4. XI AD, China - paper money5. XXIX AD, Europe - gold standard6. 1944, USA - Bretton Woods system7. 1971, USA - fiat currencies
Value?
FAITH
Value!
FAITH
Digital currencies
1996
1998
2000
2008
Businesses
Bitcoin
2008 SaToshi NakaMotohttp://bitcoin.org/bitcoin.pdf
Crypto currencies
Exchanges
Technology
Public-keyCryptograp
hy
Open-source
Decentralization
Technology
http://visual.ly/bitcoin-infographic
1PC9aZC4hNX2rmmrt
7uHTfYAS3hRbph4UN p
ub
lic key
pri
vate
key
Mining
Market
7 day average fromhttp://bitcoinity.org/markets/list
4 day average fromhttp://blockchain.info/pools
Market
Quaterly average fromhttp://blockchain.info/charts
RisksLegal Technology Market
Gov’t regulation 51% attack Manipulation
Undefined status Scalability Volatility
Anonymity DDOS attacks Clearing
http://bitcoin.it
State of the artMoney Tulips Fiat Gold Bitcoin
Store of value * **** ***** ****
Medium of exchange **** **** *** *****
Unit of account * **** ** **
http://bitcoin.org
Future
Mining
Technology
Exchange
Business
Commodity
Debts &
Loans
Currency
Pension funds
Derivatives
Although some of the enthusiasm for bitcoin is driven by a distrust of state-issued currency, it is hard to imagine a world where the main currency is based on an extremely complex code understood by only a few and controlled by even fewer, without accountability, arbitration, or recourse.
Francois R. Velde, senior economist (Chicago Fed Letter)
Yep, sounds like the dollar.Reddit commentor
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