By Warren Pies, Founder, Strategist at 3Fourteen Research
Few issues divide well respected investors as much as cryptocurrency. To hear many classic value investors tell it, crypto is Bernie Madoff with the added dimension of wasting electricity and facilitating seedy criminal activities. Others, including many famed macro investors like Paul Tudor Jones, Stan Druckenmiller and Dan Loeb, believe we are in the early innings of a new, transformative asset class—one that will cut out the traditional rent-seeking financial middlemen, directly connect economic actors and expand financial services to the far reaches of the globe. The range of predicted outcomes is staggering.
As we dig further into the crypto ecosystem, the complexity (and potential) becomes apparent. Whatever your initial impression, an approximately $2 trillion asset class should be approached with interest, respect and humility.
In this blog post, I aim to answer four discrete…