They haven’t put much money into bitcoins, so if you think its a good investment you have to sincerely believe you are substantially better informed or more rational than they are, which seems unlikely.
Well, or that it’s not really worth their time to speculate on Bitcoin. The current market capitalization of Bitcoin is tiny compared to the markets that they’re interested in- and so even though there’s lots of price fluctuation, that doesn’t mean there’s lots of money to be made out of riding that wave. The highest daily trade volume was $34M; that’s a thousandth of a normal day on the NYSE.
The only good argument I’ve heard for buying bitcoin is “there’s a X% chance that one bitcoin will be worth 1/21M of the total cash savings supply of the world in the long term,” which is not the sort of thing hedge funds are interested in.
Well, or that it’s not really worth their time to speculate on Bitcoin. The current market capitalization of Bitcoin is tiny compared to the markets that they’re interested in- and so even though there’s lots of price fluctuation, that doesn’t mean there’s lots of money to be made out of riding that wave. The highest daily trade volume was $34M; that’s a thousandth of a normal day on the NYSE.
The only good argument I’ve heard for buying bitcoin is “there’s a X% chance that one bitcoin will be worth 1/21M of the total cash savings supply of the world in the long term,” which is not the sort of thing hedge funds are interested in.