Crypto Hedge Fund Manager Shares Investment Strategy

>Steindorff:

Digital assets are an entirely new and unique asset class that can’t be evaluated using the same frameworks used to value traditional investments.

Yeah, this is bullshit.

What he is not admitting is that he has no idea how to value it nor does anyone else.( Exponential growth is not easy to model. Closest thing or people who are able to model it are quants who may use a jump diffusion process.

They currently use that to model/price options.

> jump diffusion model, introduced in 1976 by Robert Merton, is a model for stock price behavior that incorporates small day-to-day "diffusive" movements together with larger, randomly occurring "jumps". The inclusion of jumps allows for more realistic "crash" scenarios and means that the standard dynamic replication hedging approach of the standard Black-Scholes model no longer works. This causes option prices to increase compared to the Black-Scholes model and to depend on the risk aversion of investors. This Demonstration explores how the price of European call and put options varies with the jump diffusion model parameters.[1](http://demonstrations.wolfram.com/OptionPricesInMertonsJumpD...)

How do you honestly say that this is a new asset class?Currency has been around for centuries. The difference is their hasn't been a currency with daily moves averaging +-10%.

I do not know if that's stable enough to be a currency.