12th September 2021 > > Pensions.

tl;dr

Pension money is starting to head into the crypto world.

Market Snap

Market Wrap

All quiet.

Occasional Series – Some notable recent comments

Stefan Ingves, governor of Sweden’s central bank:

“Private money usually collapses sooner or later.”

“Sure, you can get rich by trading in bitcoin, but it’s comparable to trading in stamps.”

Alejandro Diaz de Leon, governor of Bank of Mexico:

“Whoever receives bitcoin in exchange for a good or service, we believe that (transaction) is more akin to bartering because that person is exchanging a good for a good, but not really money for a good.”

Peter Schiff, noted crypto sceptic:

“ (BTC) … is purely for speculators looking for action, who don’t mind the risk of trading a worthless digital asset that will eventually zero out.”

Spencer Schiff, son of Peter Schiff:

“What a difference a year makes! Last August, most of my savings were in gold. I’m now all-in on Bitcoin, and I’m never going back.”

Rick Reider, managing director of BlackRock Inc.:

“Listen, I’ve said… part of why I own a small piece of bitcoin is I do think there are more people that are going to enter that fray over time. We have a very moderate position in our portfolio. I like assets quite frankly that are volatile, that have upside convexity, and I could see bitcoin like it’s done. I could see it go up significantly.”

Curious Cryptos’ Commentary – Here comes the pension money

At the end of 2019, the total value of all pensions was quoted at $40 TRILLION.

Nearly two years later, the madcap dash by all governments determined to make the rich richer, and the poor poorer (otherwise known as quantitative easing) guarantees that number will be significantly larger today, maybe as high as $50 TRILLION.

In Virginia, two pension funds are seeking approval to invest directly in a fund that buys BTC and other cryptos. These two pension funds have already invested in blockchain technology via an investment fund that is focussed on blockchain companies. The new investments will be directly related to the price performance of cryptos themselves.

The starting point is a measly $50mm, but the scope for that number to increase dramatically and increase quickly is huge.

5% of all pension assets invested in cryptos would double the current market cap. That won’t happen overnight, but this upward pressure on crypto prices is not going to go away.