Our little tribe is not that small anymore. In the beginning, this movement was only a small group of libertarians and programming fans. I dare say that In its beginnings, Bitcoin was just a curiosity and nothing more. Kind of like a game. However, this has changed. Bitcoin has evolved a lot over time and has grown a lot. Today, the Bitcoin community is much more diverse. Radical ideas can develop very easily in a small group. If the future is a dream, everything is more rigid and strict. In other words, utopia is designed from start to finish. But since the movement has a real impact on the world, the radicals become a minority and there is pragmatism. Institutional capital is coming. The “enemy” is now our new best friend. What does that mean? Who is Paul Tudor Jones II?
The Bitcoin Revolution: People Against Banks and Governments. The disruptive cryptocurrency that changes the world as we know it. As with any self-proclaimed revolution, there is a battle. A kind of class struggle. On the one hand there are the heroes. You defend the oppressed. And then there are the bad guys, the oppressors in power. There is a prophet. In our case it is the omniscient and invisible Satoshi Nakamoto. And a cause. Bitcoin. And of course the day of the final victory. That is paradise. Everyone under the same coin. The end of the banks. The separation of economy and state. And the end of the economic crisis. And everyone swims forever in prosperity. In other words, the current crash and hegemony of Bitcoin.
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Bitcoin was forged with a strong political element. Its creator and first converts came from the liberation sector. So the Bitcoin narrative was inspired by libertarian discourse. This political ideology is particularly strong in the United States. There is even a libertarian party that introduces candidates to every presidential election. It is a minority, but influential. Mainly because ideology attracts many entrepreneurs. In other words, business people who become libertarians. And libertarians who become entrepreneurs. Here the enemy is the government as an oppressor of economic and personal freedom.
Libertarians are inspired by personalities like Thomas Jefferson, but above all by economists who support the free market. Banks and governments are the big distorters of the economy. Of course The ideal would be a currency like gold or bitcoin (digital gold), since fiat money is central to this government interventionist policy. According to libertarians, this is the origin of all evils. The free market is redemption.
But now Bitcoin is in the world and not in the books. He meets regulators every day and wants to attract more buyers. The community is growing and other players are entering. Suddenly, libertarians are no longer the vast majority of the community. New voices emerge. More moderate and less ideological voices. That said, Bitcoin is becoming a bit more pragmatic. For some, that means giving in to the ideals. A necessary evil for others. Something that requires reality. Maybe it’s just a little sensible. Sensitivity that makes us grow.
Bitcoin is in a new phase. Banks want to invest and be part of the tribe. Governments want to regulate Bitcoin. And the big players in the crypto community are at the forefront of this process. The most important companies in the blockchain sector form alliances with the “enemy”. And the “enemy” wants to come play with us. It is not a class war. It is a new industry that is developing.
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Every time someone like Warren Buffett or Jamie Dimon criticizes Bitcoin, the libertarian streak wakes up in the crypto community and the drums of the revolution sound. However, Every time JP Morgan, Fidelity, Goldman Sachs or Banco Santander express their interest in crypto, our pupils dilate and our ears drop like a hungry puppy. We forget the revolution and use the cookies and coffee to serve our new best friend.
Who is Paul Tudor Jones II? Our new best friend. One of the richest men in the world and the big boss of one of the most successful hedge funds on Wall Street, the Tudor Investment Corporation. In other words, the evil, dull, and usury system in flesh and blood. Wall Street, institutional capital, banks, etc. Donors from Barack Obama, John McCain, Rudy Giuliani and others. And now an angel because you are investing in Bitcoin.
Our friend Paul is not the first billionaire to become a Bitcoiner. The thing is, our billionaires were mostly venture capitalists like Tim Draper and Mike Novogratz. And venture capitalists are different. You are the adventurer of the financial world. His game is very special. But big money is something else. You care about other people’s money. Your portfolios are always under scrutiny and have to generate a return every year. It’s a very delicate business because the regulators are very aware of all their movements. To make decisions, they need to consult with their teams and consider their customers. Something can be very good and profitable, but when it generates a lot of rejection it is sometimes discarded.
Tudor’s investment is very relevant as it gives Bitcoin a lot of credibility. Wall Street works like a school. If the other guys do it, it has to be done. In the world of large hedge funds, Tudor is following a path that others will surely follow. This is institutional money that gets into the ecosystem. Something that improves the price, but also gives political power. In this fund There is money from all over the world. Bitcoin would stop being a minority. It was going to be something of public interest. Too big to fail. Here the game changes and Bitcoin becomes part of the establishment
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In his letter to his investors, Tudor explains that Bitcoin is currently undervalued. He expects himThe liquidity of the economic stimulus for the corona virus crisis and for the recovery could ultimately have a very positive impact on the Bitcoin price. In my opinion, a very precise insight into the situation.
Apparently, Bitcoin in the Tudor portfolio rose from 0% to 1%. This number is very revealing. And I would say that this is the magic number that most funds investing in Bitcoin will choose in the future. Why? Well, first of all we have to remember that the funds have nothing to do with the ideological problem that is so common in the average Bitcoin. There is no sentimentality here that is worth it. Bitcoin is an extremely volatile asset. In other words, it is a very risky commodity. More than 1% is too high a risk for a large fund. Bitcoin can drop more than 40% in a day, which would be fatal for a fund. But 1% or 2% is fine. Because the portfolio may lose half a point due to a bitcoin crash, but may gain 2, 3, or even more. There is a risk, but there is a chance. And 1% is a number that lets you lose little in the bad and earn enough in the good. It would look nice in the annual report.
Dear friend, Paul: Welcome!