• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Crypto.com Logo Crypto.com Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Play Games
  • BET&WIN
  • Bitcoin Casino Reviews
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Play Games
  • BET&WIN
  • Bitcoin Casino Reviews
Bitcoinist.com
No Result
View All Result
bitcoin is schuck insurance
Nexo

Bitcoin is ‘Schmuck Insurance’: Morgan Creek Capital Founder

Richard Cox by Richard Cox
3 years ago
in Bitcoin Investment, Bitcoin, News
0
Advertisement

Bank of America Merrill Lynch recently surveyed fund managers and found that investors are the most bullish they’ve been on bonds since the end of 2008.  But that popularity comes as long-term risks are developing for traditional asset classes. For these reasons, Morgan Creek Capital Founder & CIO, Mark Yusko thinks new types of protective ‘insurance’ such as Bitcoin may be warranted.


Investor Perceptions vs. Market Reality

While the traditional expectations call for a slow summer trading period, stocks have consistently traded under heavy selling pressure and posted some of their most volatile single-session performances of 2019.  Bearish catalysts first appeared in the U.S. bond space, where the yield curve inverted for the first time since the 2008 financial crisis.  

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

As a result, bond markets now meet three of the four main characteristics which define a ‘bubble’ environment for global government debt.  But despite this clear evidence of macro uncertainty, government bonds haven’t been this popular in more than a decade.  

Evidence of Global Deterioration

Mark Yusko, Founder, and CEO of Morgan Creek Capital Management responded to these developments in a recent interview with CNBC:

I think we’ve got the biggest bond bubble we’ve ever seen in history… and it’s starting to show signs of deterioration.

Unfortunately, these signs have become visible in most regions around the world.  Let’s take a look at the activity in bond markets for developed countries in several regions. 

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!

We should start with the world’s largest economy, where the U.S. Treasury market’s 30-year bond yield has an all-time low clearly in its sights:

Source: Bloomberg

Next, we can look at government bond yields from Sweden and Switzerland (two of Europe’s strongest and most stable economies) dating all the way back to 1870:

What is the best crypto casino in July 2022? Read our comprehensive comparison! We made deposits, played and reviewed 80+ crypto casinos to choose the best one.
Source: Longview Economics, Macrobond

Last, we will look at perpetual bonds in the U.K. (also referred to as consols) dating back to 1700.  Essentially, these yields are tied to bonds that the government can redeem any time they want (without much advance warning):

Source: Longview Economics, Macrobond

Needless to say, these are all very long-term comparisons.  Essentially, these broader time frames make it much more difficult skeptics to dismiss the current trends as simple one-off events.

Bitcoin As ‘Schmuck Insurance’

By historical standards, equities remain overvalued even after their recent declines.  So if the relative safety of bonds continues to evaporate, it stands to reason that investors may start to see value in untapped areas of the market.  

In his CNBC interview, Yusko offers some final advice to traders and goes on to explain why a long-term bitcoin investment can act as a hedge against global uncertainties: 

People that watch the daily price of bitcoin are really missing the point.  The whole idea of bitcoin is that it’s a store of value It’s a chaos hedge, or ‘schmuck insurance’ as I like to call it.  What we need to think about is the long-term trend. What you want to do is own a piece of the network. You want to have 1, 2, 3 or 5% of your net worth in this asset.

Do you think bitcoin works as a hedge against global economic uncertainty?  Let us know in the comments below!


Images via Bitcoinist Image Library,

ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Richard Cox

Richard Cox

Richard Cox is a personal investor with more than two decades of experience in the financial markets. He is a syndicated writer, with works appearing on CNBC, NASDAQ, Economy Watch, Motley Fool, and Wired Magazine. Market commentaries implement advanced technical analysis strategies to trade macroeconomic trends in global index benchmarks, foreign exchange, options, commodities, dividend stocks, tech startups, and digital currencies.

Related Posts

Bitcoin Mining

Why The Bitcoin Hashrate Has Barely Moved Since May

55 mins ago
Bitcoin Mining

Bitcoin Mining Company Returns Over 26,000 Rigs To Save Itself From A Ballooning Debt

6 hours ago
Ukraine

Ukraine Buys New Batch Of Weapons To Fight Russia Using $60 Million Crypto Donations

8 hours ago
bitcoin and stocks

Is the Bitcoin Stock Market Correlation Finally Ending?

1 day ago
Bitcoin

Bitcoin Is Now Accepted In This Popular Resort In The Maldives

1 day ago
Anthony Scaramucci

Here’s Why Scaramucci Expects Bitcoin Price To Reach $300,000 Before 2030

3 days ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
  • Crypto Prices from Nomics
© 2022 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Play Games
  • BET&WIN
  • Bitcoin Casino Reviews

© 2021 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.