Crypto … what?
Cryptocurrencies are basically digital-native money. People who trade in bitcoin, ether and other digital assets now call dollars, pounds, euros and such “sovereign” or “fiat” currencies. All money has something underlying their value. It used to be gold and silver. But today the dollar, for example, is backed only by a shared trust in the Federal Reserve Bank. So maybe cryptocurrencies – which rely on only the reputations of communities that trade in them – aren’t such a stretch.
But digital money is a whole new asset class and not too many people really understand it. That’s why they hire hedge fund managers, and why those pros charge a 30 percent performance fee when dealing with it.
But are the hedge fund managers really earning it, or are they just taking roughly $1 out of every $3 invested just to take an order?
Bitcoin’s value went up around 800 percent in the past 12 months – 50 percent in October alone. So all a cryptocurrency hedge fund manager had to do was buy bitcoin and hold onto it.
