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This week we had the privilege of speaking to Jeff Gao, the new CEO of Cypherpunk Holdings. It is a listed company that follows a strong crypto investment theme with a portfolio of assets designed to beat the performance of cryptocurrencies. This includes bespoke and privileged deals that retail investors would not necessarily have access to.

We obviously take the opportunity to discuss with Jeff the current performance of the key cryptocurrency markets like Bitcoin and Ethereum. Cypherpunk has some considerable crypto asset reserves and he explains his philosophy about managing cryptoassets. Some very interesting comparisons are made with commodities, especially the gold market. Is Bitcoin really being used as an inflation hedge, and has gold been relegated to a supporting role?

On the Podcast

Jeff sees Cypherpunk Holdings as a steward of investor wealth and explains the importance of making the most of both the ‘rips’ and the ‘dips’ in the cryptocurrency markets. He talks about the considerable Cypherpunk treasury and how the company’s investment committee plans to manage that.

We also discuss the new Bitcoin ETFs that have been hitting the market: Jeff has already written an excellent article on this but we go into further detail on the podcast, looking at the different types of listed funds. This includes crypto and blockchain-like equities, and the difference between spot market investment in Bitcoin and futures. What can investors expect from regulators like the SEC in the future?

Crypto gaming assets is an area of especial interest for Jeff. Gaming-related tokens look like they could become a huge market, not only for Cypherpunk Holdings itself but also for the wider investor community. Jeff has been working on a series about this for The Armchair Trader but goes into further detail on in-gaming token economics.

The Metaverse

The metaverse has become quite the talking point following Facebook’s announced re-branding: thus we go into some detail on the metaverse and what this means for digital assets. What are the implications for both virtual and real-world economics? How does augmented reality fit into this? Is there going to be a new and exciting market that will sit at the juncture between online gaming and cryptocurrency?

The Metaverse is really a legacy of Pokemon Go, which really set out the stall for its potential. Successors to this idea are now building a far more ambitious landscape for gamers. Cypherpunk sees this as a very exciting new frontier in investment that goes well beyond a simple passive exchange of capital. Jeff says he will be on the look out for projects in the area which he is comfortable backing. Governance will be an important factor here.

How do these projects work and what is the formula they will be using to match effort and consumption? One of the barriers to entry to newbie crypto gamers will be how much money they will need to spend to onboard online assets. Is there scope for a microfinance scheme that could support the next generation of profitable crypto gamers?

Crypto gaming is becoming an important leg of the Fourth Industrial Revolution. It is happening right in front of our eyes. It is unlocking value that would not otherwise be available.

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Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Stuart Fieldhouse

Stuart Fieldhouse

Stuart Fieldhouse has spent 25 years in journalism and marketing, including as a wealth management editor for the Financial Times group, covering capital markets and international private banking, and as an investment banking correspondent for Euromoney in Hong Kong. He was the founder editor of The Hedge Fund Journal.

Stuart has worked at CMC Markets, supporting the re-launch of its global financial spread betting and CFD trading platforms. He is also the author of two books on trading, published by Financial Times Pearson. Based in The Armchair Trader’s London office, Stuart continues to advise fund managers, private banks, family offices and other financial institutions.

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