
Crypto Hedge Fund Manager Shares Investment Strategy - thegjp210
https://www.forbes.com/sites/kevinharris/2017/12/01/crypto-hedge-fund-manager-steindorff-shares-investment-strategy/#39a4cb1f4abe
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bob_theslob646
>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...](http://demonstrations.wolfram.com/OptionPricesInMertonsJumpDiffusionModel/))

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.

