Ponzi Financing, Negative Interest Rates and Bitcoin, Part 2

6 min read

In Part 1, we analyzed the Ponzi financing model, and further study the paradigm shift of the three financing models. Today, we discuss the investment logic of hedging and Ponzi, as well as the impact of negative interest rates on digital currencies such as Bitcoin. 3.Investment Logic of Hedging and Ponzi If we deduce further, we will find that these three financing models correspond to two kinds of investment logic: the logic of hedging and Ponzi respectively. The former pursues a more tangible and stable income, which comes from cash flow or interest. While the latter comes from the logic…...

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Alan Zhang Alan Zhang is an investor and market gazer that leverages greatly on data technology in decision-making. He is familiar with the different financial markets of China including the stock, futures and cryptocurrency market. Further, he participated in the establishment of alternative investment markets like black tea since 2014 and was responsible for the private placement of Huangshan Tourism shares (600054.sh) in 2015. He is currently also a Financial Analyst at X-Order, an innovative research institute that attempts to combine cross-disciplinary fields such as distributed computing, computational game theory, artificial intelligence and cryptography to discover future extended orders. It was founded by Tony Tao, who is also a partner at NGC Ventures.