Wall Street, Bitcoin, and Corruption...

in #bitcoin7 years ago

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I used to be a gambler...

I mean, I still do the low risk, “If I make this shot from across the room you owe me a coffee!” and bet weekly on sports sites like Draft Kingz around football season.

But I used to actually GAMBLE…and when I say gamble, I mean would regularly check the Vegas sports books for games…

Checking the spread, over/under, heads or tails coin toss, and so much more.

Now the thing that made me semi-successful at gambling was because I would hedge my bets.

Say I bet on a game to cover, well I’d also bet on the same game for the spread...regardless of the outcome, I'd be a winner.

This is what all the real gamblers do.

Hedge their bets to be in a spot to never lose money, so, they ALWAYS win no matter the outcome…

Bringing me to why I’m writing to you today.

Wall Street plays the same game professional gamblers play… except they do it with your money.

Hedging your portfolio against itself so that volatility, or price swings are essentially eliminated, so that you never want to take your money out of Wall Street’s funds.

You see…

According to Teeka Tiwari, a former hedge fund manager,

“Wall Street makes its money by holding onto your money as long as possible. They deliberately try to tamp down volatility to lull clients (you) into a false sense of security. When values swing around too much, clients get scared and start to pull their investments. Wall Street hates this. Remember, they make their money by holding on to your investment dollars.”

How do they do this?

"One of the tricks Wall Street uses to tame volatility is building portfolios that hedge themselves. For example, when stocks go down, bond prices usually go up. That’s a major reason most money managers tell you to own stocks and bonds."

It’s not sound advice just a way for the establishment to drain your investment account for 40 years of fees.

Absolutely sickening!

Now insert Bitcoin...

Remember, Wall Street makes a living off low volatility portfolios so that you never take your money out of their game they invented...

Now if you've paid any attention to the wild market fluctuations of Bitcoin recently then you know how fast price fluctuates daily; you can gain one thousand and lose two thousand just as fast, if not faster.

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These huge swings in volatility scare many investors…and scares Wall Street too.

But what if Wall Street could use these wild swings to their advantage?

Maybe if they allocated a little of their client’s portfolios to Bitcoin they could stabilize their clients’ portfolios even more because Bitcoin price is uncorrelated with the stock market.

This means that the stock market movement has no bearing on where bitcoin price is headed. Uncorrelated.

Just like that according to Teeka Tiwari, this could be how Wall Street will position their client’s portfolios and continue to milk them with fees.

Spread a little bit of their money into stocks, bonds, and bitcoin so that wild price swings will be taken out of the equation.

This is how Wall Street will hedge their bets and continue to milk your account with fees.

If Wall Street begins to add cryptocurrencies to portfolios, the volatility of a client's portfolio goes down because their portfolio is now hedged against all market conditions.

-Moral of the story: Even if Wall Street allocates only a minimal percentage to bitcoin, billions of more dollars will be coming into the crypto market, making us at TheStreets, even more bullish on bitcoin.

$25,000 here we come.

#HODL

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