Ari Paul and his million dollar bet on Bitcoin
The co-founder of Blocktower Capital and CIO, Ari Paul, thinks that it is possible that the price of the pioneer digital currency, Bitcoin can go to reaching the upper bound of $50k per coin. He has made a couple of investments or bets with this confidence. He has apparently made a $1 million bet on the rise of bitcoin to at least $50,000, by the end of next year, December 2018.
The investor is seeking to capitalize on this potential by using certain investment tools and options to be able to participate in this gain. This is somewhat of an expected bet from someone of his caliber, due to the fact that he is part of a cryptocurrency hedge fund BlockTower Capital, and would have the know-how in seeing how and where the market will move. They were able to make this bet via the use of a broker named Ledger X, a broker that specializes in the cryptocurrency options.
What’s this bet all about? Well, the idea is that the hedge fund would go ahead and purchase these cryptocurrency options and will succeed if the price of bitcoin hits the number of $50,000 and goes past it by the end of December.
One thing to understand with options: a deep out of the money call is not a bet that something *will* happen, it’s a bet that something *might* happen. Risk a little to win a lot.
If this is the case and bitcoin does hit and go past that precious number, the firm will be able to purchase 275 Bitcoins at the price of $50,000. If this does not happen, then they’ll have to move on and make another bet.
A million dollars sure is a lot to place on a bet, they’d have to be somewhat certain that the price of bitcoin could very well surpass $50,000, right? We’ll see next a couple of days after the next Christmas!
2017: The the year that marks the rise of the cryptofunds
Blocktower Capital is one of many firms that have risen to become hedge funds and cryptocurrency funds that have gone into this volatile cryptocurrency market being able to contribute to the space of cryptocurrencies, being a player in the growing market and benefitting significantly from it.
This firm has made a name for itself in the cryptoworld and continues to create a buzz with tweets like these:
“Imagine if refugees from Nazi Germany or Maoist China or Syria recently could take all their wealth with them when they start a new life elsewhere, with just a password in their head.
Most of the world faces the threat of wealth confiscation. Corrupt politicians or judges confiscate wealth in Russia and China and others. Then there’s demonetization in India, civil asset forfeiture in the US, capital controls in Argentina, South Korea, and elsewhere…”
There are various players in this market, and it may increase from 175 to more as we progress into the next year.Follow us on Social Media: