
Bitcoin Portfolio Insurance: Bond Risks And Contagion
As bond risks grow and contagion appear more likely than ever, every investor needs to consider bitcoin as portfolio insurance.Editor’s note: This article is the second in a three-part series. Plain text represents the writing of Greg Foss, while italicized copy represents the writing of Jason Sansone.In part one of this series, I reviewed my history in the credit markets and covered the basics of bonds and bond math in order to provide context for our thesis. The intent was to lay the groundwork for our “Fulcrum Index,” an index which calculates the cumulative value of credit default swap....
Related News
Describing the complex world of bonds with two distinct voices to set the stage for explaining why bitcoin is critical portfolio insurance.
The Danish Red Cross along with several humanitarian partners have collaborated to float a catastrophe bond to cover volcanic eruption disasters. Crypto and blockchain adoption for humanitarian causes is set for another expansion as the Danish Red Cross has sponsored a catastrophe bond aimed at providing relief in the aftermath of a volcanic eruption.According to CIR Magazine, the catastrophe bond — often shortened to cat bond — has the backing of private firms and other humanitarian establishments with investors like Solidum Partners and Plenum Investments associated with the....
Multiple valuation models rooted in traditional financial data demonstrate that bitcoin is portfolio insurance for fixed-income investors.
Can a disruptive technology like Bitcoin ever be insured,' wonders Innovative Insurance Group President Ty Sagalow. In one of his recent blogposts, the insurance veteran referred to Bitcoin as "a new risk in the technology space", saying that the insurance industry will have to create new underwriting techniques and protocols if it wants to cater to the digital payment industry. To make things more clear, he exemplified the famous "Y2K crisis" in the late 90s that had insurance industry writing new rules for insuring technology. "So we created "Y2K insurance" and made it available only to....
ShapeShift has identified two unaffiliated projects as promising DeFi insurance protocols. Decentralized finance has many of the hallmarks of previous cryptocurrency bull markets: incredible gains, extreme volatility and massive risks. In a new report, leading noncustodial cryptocurrency exchange ShapeShift explains the four biggest risks facing DeFi investors and why the emerging field of decentralized insurance could offer a solution.The report, titled "Spreading the Risk: Decentralized Insurance," categorizes DeFi risk into the following “landmines”: custodial risk, smart contract risk,....