What is A Blockchain Hedge Fund?

blockchain cryptocurrency

As an investor, the way to stay ahead and to stay relevant is by keeping up to date (as much as possible) on all of the latest in investments and technology.

There is very little doubt that the cryptocurrency venture is easily becoming the way that we will start making investments in the near future.

Paper money can be encumbering due to how easily it can be counterfeited, stolen or even made up; yes the government and the World Bank just MAKE UP money (look at the Federal reserves).

The great thing about cryptocurrency is how ether is no governing angular body that resides over the whole affair. Cryptocurrency is managed, and it is regulated by the people – thus giving it a less corrupt feel to it.

It cannot be hated as it has in the past, but there are several reasons as to why you were to start to invest in this most advanced way of doing finances as it really is the wave of the future.

With that said, you might want to learn a bit more about cryptocurrency by reading the “Cryptocurrency Investing Bible.” Although Cryptocurrency has been around (well for a decade now) for quite some time now, it is still an investing endeavor that will require that you have a bit of information before delving not it and this is precisely what we will be going over in this article.

We will be discussing the whole What is A Blockchain Hedge Fund, and how you can get started in investing in it.

 

What is Cryptocurrency?

Cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets. – wikipedia

Now there are several types of Cryptocurrency that one can come across with the most famous being Bitcoin. However, as just mentioned there are several Cryptocurrency that one can start to invest in and there are many more that are being created almost every week.

The other 13 most popular Cryptocurrency is:

  • ZCash
  • Ethereum
  • Ripple
  • Bitcoin Cash
  • Cardano
  • Litecoin
  • NEM
  • Stellar
  • NEO
  • IOTA
  • Dash
  • Monitor
  • TRON

The way that this transaction (investing and trading) go is through something called the blockchain.

 

What is the Blockchain?

The blockchain is a growing list of records, called blocks, which are linked using cryptography. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data (generally represented as a Merkle tree root hash). By design, a blockchain is resistant to modification of the data. – wikipedia

As mentioned why cryptocurrency is becoming so popular and so powerful around the world is because of how easy it is to trade and safe it is to handle transactions.

People are in control of the overall transactions, and as a result, those who have the Cryptocurrency can be sure that they are the sole possessor of the Cryptocurrency.

This gives a huge amount of safety and eases to people who want to have a much more hands-on touch with their money an finances without having any governing bodies watching in over it (with governing being the operative word in the sentence.

So how does one start to set up a hedge fund in relations to Cryptocurrency using the blockchain?

First, we must understand what a hedge fund is.

 

What is a Hedge Fund?

A hedge fund is an investment fund that pools capital from accredited individuals or institutional investors and invests in a variety of assets, often with complex portfolio-construction and risk-management techniques. It is administered by a professional investment management firm, and often structured as a limited partnership, limited liability company, or similar vehicle. Hedge funds are generally distinct from mutual funds, as their use of leverage is not capped by regulators, and distinct from private equity funds, as the majority of hedge funds invest in relatively liquid assets. – wikipedia

As we have mentioned being at the top of your investment game, you have to be willing and more importantly able to change with the times, and it is more than obvious that the Cryptocurrency is easily becoming the way for the future in regards to doing business and finances.

It’s safe (still needs a bit more work to make it much more secure as there have been some Cryptocurrencies that have been hacked) but there is always room for improvement.

So to help you have a better understanding of the whole blockchain hedge fund we think it would be salient to know the technology behind it so you have a better understanding of how your investment will be going.

 

A Distributed Database

The blockchain database is not stored or located in one singular place (the reason is that any skilled hacker [and there are many skilled hackers out there]) could easily hack into this and take ALL of the trades and investments.

However, the great thing about this is that the trades and the investment are made public, and everyone can see the investment and transaction taking place.

Everyone is watching one another, and in a sense, this is like brother’s eye except that everyone is brother’s eye. Everyone watches what everyone sees his doing and thus the transaction is made more transparent. There will be no one getting over on a transaction.

 

Blockchain Durability and Robustness

The great thing about the blockchain is that:

it cannot be controlled by a singular enemy (this is what many countries financial system revolve around and why it is so easy to corrupt an bribe people with)

There is no single point of failure – meaning since its inception (being back in 2008) there has been no disruption of power.

To sum this up (the beauty behind Cryptocurrency and the way it will start to be the way we do finances n the future we need look no further than to listen to Ian Khan (a TEDx Speaker on the beauty and sophistication behind the blockchain technology:

“As revolutionary as it sounds, Blockchain truly is a mechanism to bring everyone to the highest degree of accountability. No more missed transactions, human or machine errors, or even an exchange that was not done with the consent of the parties involved. Above anything else, the most critical area where Blockchain helps is to guarantee the validity of a transaction by recording it not only on the main register but a connected distributed system of registers, all of which are connected through a secure validation mechanism.” – Ian Khan

 

Transparent and Incorruptible

As we mentioned, there is a great deal of transparency with the blockchain. Everyone acts as a Big Brother eye to one another. There is no one who can sneak in there and scheme against the whole system because even if it does happen (and it doesn’t sometimes work due to hackers), the system can regulate and adjust itself appropriately.

Transparency data is locked and embedded into the system

The data cannot be corrupted or altered.

More words from this involved in the whole blockchain system and why it is so beneficial for future finances.

The Wonders of the Blockchain:

“Blockchain solves the problem of manipulation. When I speak about it in the West, people say they trust Google, Facebook, or their banks. However, the rest of the world doesn’t trust organizations and corporations that much — I mean Africa, India, Eastern Europe, or Russia. It’s not about the places where people are really rich. Blockchain’s opportunities are the highest in the countries that haven’t reached that level yet.” – Vitalik Buterin, the inventor of Ethereum  

 

There Is A Network Of Nodes

There is a network of nodes that run the blockchain.

What are the nodes you may be asking?

A node is either a redistribution point or a communication endpoint. – wikipedia

Nodes work by participating to win bitcoin by completing puzzles.

The importance of nodes summed up:

“Bitcoin has the same character a fax machine had. A single fax machine is a doorstop. The world where everyone has a fax machine is an immensely valuable thing.” – Larry Summers, Former US Secretary of the Treasury

 

The Idea of Decentralization

There is a great desire by the populace to start decentralizing, and this is because again there is no governing power and this is a better way of doing finances since it is almost a peer to peer basis.

In the coming future, the blockchain will most definitely be the way that we don’t transaction. In fact, we can already see (the stock market) some of these claims happening today; especially in the stock market sector.

 

So How Does This Relate to A Hedge Fund?

Well, the answer is very obvioCryptocurrencyency is easily the next wave of doing finances. For the investors who want to get in on this most advanced way for doing finances, it would prove invaluable to them to start working with a Blockchain hedge fund firm that can help them build up a portfolio.

The idea of blockchain and how it is a system that is not run by one singular body can be a very alluring proposition for many investors and like many investors of old who got in on the whole Google and Microsoft bandwagon NOW are millionaires over and over getting in and investing with this Crypto currency will prove to be the best investment decision to make on your end.

A Quick Recap:

A distributed database

The blockchain database is not stored or located in one singular place (the reason is that any skilled hacker [and there are many skilled hackers out there]) could easily hack into this and take ALL of the trades and investments.

However, the great thing about this is that the trades and the investment are made public, and everyone can see the investment and transaction taking place.

Blockchain Durability and Robustness

The great thing about the blockchain is that:

It cannot be controlled by a singular enemy (this is what many countries financial system revolve around and why it is so easy to corrupt an bribe people with)

There is no single point of failure – meaning since its inception (being back in 2008) there has been no disruption of power.

Transparent and Incorruptible

As we mentioned, there is a great deal of transparency with the blockchain. Everyone acts as a Big Brother eye to one another. There is no one who can sneak in there and scheme against the whole system because even if it does happen (and it doesn’t sometimes work due to hackers), the system can regulate and adjust itself appropriately.

The Idea of Decentralization

There is a great desire by the populace to start decentralizing, and this is because again there is no governing power and this is a better way of doing finances since it is almost a peer to peer basis.

In the coming future, the blockchain will most definitely be the way that we d oct transaction. In fact, we can already see some of these claims happening today; especially in the stock market sector.

So How Does This Relate to A Hedge Fund?

Well, the answer is very obvious. Crypto currency is easily the next wave of doing finances. For the investors who want to get in on its most advanced way for doing finances, it would prove invaluable to them to start working with a Blockchain hedge fund firm that can help them build up a portfolio.

Final Thoughts

We highly recommend that you give the Cryptocurrency Investing Bible a read to have a better understanding of what you should know about in this widely popular and powerful finical sector.

The future of financing is looking to be a very liberating and more freeway f doing the transaction and doing business.

Moreover, for those who want more intros over their finances and more control over the way they do business then this is very well the commercial avenue that they may want to go down.

“Online identity and reputation will be decentralized. We will own the data that belongs to us.” – William Mougayar, author of The Business Blockchain: Promise, Practice, and Application of the Next Internet Technology

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