RE: STEEM/PAL/LEO will be the target for most airdropped Tokens in Future? LEO, BYTEBALL, PAL, HUNT and many more tokens have shown that it is quite possible.
"Or, they can hedge by selling during bull run and buying during the bear run."
That has nothing to do with hedging since it doesn't reduce risks but only makes the volatility less. Hedging would mean they go short while also being long to get a neutral position.
"Let us do the backward thought experiment. STINC had sold 5M Steem at $5 during the bull run and withdrew $25M from the market. They invested this $25M in safer REIT, Annuity stocks which easily earned them $200K per month. With little bit cost cutting STINC could run the whole company with annuity and still keep $25M as hedging. Or, they could start buying Steem now from the advertising."
You could also use your own money and invest. Most fund managers underperform the market, there is no reason to trust the people managing this fund. Unless there is a >10 year track record of outperformance that has been audited by a third party big law firm.
"STEEM blockchain has recently reached 1.3M userbase including all DApps such as Palnet, Steemleo, Steemhunt, it can rise to 10M pretty soon due to network effect."
Are those just registered accounts or real active people? Because there are a lot of people here who have multiple accounts and there are lots of bots also. + not everyone is very active on steemit, some left this place long time ago.
I bet in reality only 20% of that number are real active people. If it's even that much.
Definitely there is no 1.3M users, I must say 1.3M accounts.
Shorting is not even possible for most altcoins.
As said, it is just a thought experiment. They could do better by shorting $25M on BTC or LTC near peak.
Yes, mutual funds are dinosaurs. We are in ETF era. Even a tech or Semicon ETF will probably perform 10-15% growth in a year. But a real-estate reits are good enough for 8-10% dividends in all sorts of market scenarios.
Thanks for visiting!
"Shorting is not even possible for most altcoins."
Yes that's a good point you are right. And you want to know why that is? I always wondered why Binance doesn't allow margin trading but apparently the real reason is because it would make 51% attacks profitable. Because you could fairly easily 51% attack the smaller altcoins but there is simply not much money to be made with that because it creates a liquidity crash and the cyber criminals can't sell all their altcoins on the market at a good price. But if you can short then those things become profitable. That's the reason behind it.
"Yes, mutual funds are dinosaurs. We are in ETF era. Even a tech or Semicon ETF will probably perform 10-15% growth in a year. But a real-estate reits are good enough for 8-10% dividends in all sorts of market scenarios."
Not even mutual funds are underperformers. That reminds me of an advertisement i saw back in 2017 in the bull market while we where going parabolic. I don't remember the website it was on but they where saying something in the line of: "check out our amazing performance of the bitcoin trading bot. Up 400% this year." And when i did the math they actually underperformed a simple buy and hold strategy at that time.
What's then the point of paying fees for a trading bot that's even not better than what the market is doing. You could say this for 99% of wall street, they are like car salesman. I have been trading for a long time, you know how guys like goldman sachs call their clients? Clients are muppets, you have to sell the most complex product to the least sophisticated investor. That's how they make money.