I would like you to weave your story around the following questions:
I like to use the word ‘digital currency’ instead of crypto-currency, even though both refer to the same thing.
Ikkurty Capital(IC) is a fund that invests in digital currencies. It is similar in form to the mutual. A typical mutual fund invests in equities and bonds of public securities. IC invests in publicly listed digital currencies like Bitcoin, Ethereum and Litecoin. We currently have 1400 digital currencies each dealing with a different problem in our society. I manage the IC and chose the investments that will provide returns that beat major stock market indices like S&P 500. When a investor adds funds to the IC, I manage the fund and make all the investment decisions. The fund management company gets paid ONLY when investors make money. We split the profits in the ratio of 25:75 between the fund management company and the investors.
All the fiat currencies like USD, JPY, EUR, INR are all inflationary. Every year governments keep printing new currency. In contrast to fiat currencies, Bitcoin is a digital currency. It facilitates easy transfer of money between the participants over the internet. People for example can send any amount of money - could be 1 millionth of a rupee or even 10000 crores to anyone in the world any time using bitcoin for almost nothing. Bitcoin is supply is limited to 21 Million coins for all of humanity, which includes the current population of humans and all humans who are yet to come. Since the supply is fixed, bitcoin as a currency is deflationary and is a good store of value.
If people want to store their hard-earned money, Bitcoin is significantly better than gold as a store of value. It is argued the bitcoin is the best form of money the world has ever seen.
All of the Bitcoin’s strength comes from the fact that no central authority who controls it. Bitcoin is a protocol for money, similar to TCP/IP is a protocol for Internet. Bitcoin is effectively the money for the Internet and created for digital transactions. It does link money to a person’s identity. Each person/entity control their own wallet. Any wallet consists of a public key and a private key. You can publish your public key on webpage or show next to the cash register if you are a store. This enables you to receive payments into your wallet. To send money out of your Wallet, you need your private key. You do not share your private key with anyone.
It is not possible to quantify the risk with Bitcoin with a number. Bitcoin’s price is determined based on the market forces and the demand for the currency. The demand comes from the use cases of bitcoin. It allows us to transact with anyone in the world without requiring any assistance either from governments or banks.
The risks in bitcoin are not correlated to stock market. People who have conducted extensive research found that it is negatively correlated to stock markets. In other words, if people panic in stock markets they seek shelter in bitcoin.
It is very volatile when compared to other assets. Stocks are valued based on the cash flows that can be extracted from a company from its operations. The cash flows a company can generate does not fluctuate a lot. As a result they are less prone to violent swings.
Bitcoin does not have any cash flows. The price discovery mechanism depends on the value of the money transacted on this Bitcoin network. This changes a lot on a regular basis. There are numerous occasions where Bitcoin has dropped by 70% and recovered from all of those losses. It is hard to find many sectors that have this sort of volatility.
I would surmise that Bitcoin is here to stay as long as the earth is here. It is not controlled by any government or a company. I would expect Bitcoin to be here as long as the internet is here on the planet.
It is very well accepted in United States, Japan, Switzerland, Denmark, Sweden, Estonia and Belaurus.
None. Nobody is in control of bitcoin. It is a protocol similar to SMTP protocol for sending emails. There are various companies that have applications (like gmail, Hotmail etc) that are built using the SMTP protocol, but these applications are not in charge of the Protocol itself.
Right now, Ikkurty Capital minimum investment is $100,000 USD. These numbers are governed by Securities and Exchange Commission in USA.
Ikkuty Capital is a partnership. It is not a C-corporation similar to Google or Facebook. It does not have any shareholders. It does not pay taxes to the government. It is a LLP, which a pass through entity for tax purposes. This Partnership is managed by a fund management company called, ‘Jafia LLC’, which I work for. Jafia LLC is the portfolio manager, charged with the goal of increasing the investor’s capital. We only focus on investing in digital currencies and nothing else. I not only invest in bitcoin, but I research and trade in order to find the ‘next bitcoin’ that can provide 100X return to the investor.
