This Week in Crypto, July 26

Sarson Funds Cryptocurrency Investing

Investors Express Interest in cryptocurrency

A recent survey showed 83% of investors were interested in “dipping their toe” into crypto investments with a small investment in Bitcoin. The survey, conducted by Grayscale Investments, also found that the average age of crypto investors was 42 years old. A majority of respondents (89%) said they were looking for quality educational resources about Bitcoin before they invested.

Iran officially recognizes cryptocurrency

Iran officially recognized cryptocurrency as an official currency this week and is now allowing crypto mining in the country. Previously, Iran tried to suppress mining when Bitcoin mining surged due to the low price of electricity in the country. Officials say despite the country’s embrace of cryptocurrency, it’s unclear if the government will allow the currency to be used for domestic payments.

European Central Bank Voices Concerns Over Libra

The President of the European Central Bank, Mario Draghi, recently expressed his concerns about Facebook’s proposed digital currency, Libra. Facebook needed to address a long list of concerns such as cybersecurity, money laundering, and privacy before regulators could begin to look at the digital currency, said Draghi. He is just one of many regulators speaking out about the new currency. US lawmakers have been holding hearings about Facebook’s plan, and the Federal Reserve and the Bank of England have all voiced their concerns.

Bitcoin Rises Sharply Ahead of the First Rate Cut in Its Existence

Dear Investors,

Banking the unbanked, streamlining international remittances, reducing fees and online transaction times – all sound Bitcoin value propositions. Yet those are not Bitcoin’s raison d’être.

Bitcoin’s origin, its birth, its reason for being is a protest against printing money.

The Keynesian excesses of governments around the world have debased currencies and looted the savings of their citizens. Under the guise of economic growth stimulus, governments have turned a blind eye.

The world economic system has become an undisciplined Keynesian dystopia, and the ever-soaring price of Bitcoin is the yard stick by which this dysfunction is measured.

As a globally traded commodity, a weaker USD will lead to higher Bitcoin prices, even without increases in demand. Of course a new round of easy monetary policy will likely increase demand for the disinflationary safe-haven of Bitcoin – as it does for other real assets like Gold and Real Estate.

Our friend and industry thought leader at Morgan Creek, Anthony Pompliano, probably said it best with his tweet on the topic, “They don’t realize that they’re giving Bitcoin the rocket fuel it was built to consume.”

If you or your clients would like help investing in an asset class fundamentally designed to protect against runaway money printing, please contact us.

Sarson Funds brings Wall Street standards for transparency, diversification and risk management to cryptocurrency investing.

Investor awareness is important for our firm. We also provide advisors with unbiased client-focused educational materials on cryptocurrency and blockchain technology.

Please visit us at www.sarsonfunds.com to learn more.

This Week in Crypto, August 2

Bitcoin surges this week

Positive news helped boost the price of Bitcoin over $10,000 this week. With the Federal Reserve cutting interest rates for the first time in 10 years, the price rose 10% in three days as investors responded to the news. For Sarson Funds’ take on on the Fed rate cut and Bitcoin, click here.

Leicester FC Renews Agreement with Crypto Platform

Further strengthening the relationship between sports and crypto, the English Premier football team, Leicester FC renewed its agreement with cryptocurrency investment platform eToro. The platform facilitates payment with crypto for tickets or team merchandise. Six other football clubs had followed suit and signed agreements with the platform, according to eToro.

Investors Get Ready for Litecoin Halving

Sarson Funds is poised to take advantage of the Litecoin (LTC) halving set for next week, on August 6.

Previously, Litecoin miners would receive 25 coins for mining Litecoin. After August 6 they will receive 12.5 coins, drastically reducing the amount of coins in circulation, increasing the demand, and potentially raising the price.

Litecoin Halving: What Will Happen?

In August 2015, the reward for mining Litecoin was halved from 50 Litecoin to 25. On August 5th, 2019, the reward for mining Litecoin was halved from 25 to 12.5 Litecoin.

This procedure for mining cryptocurrencies is called halving, and is a necessary procedure to understanding the lifespan of cryptocurrencies as well as the price fluctuations of them. Unlike the U.S. dollar or other fiat currencies, miners can’t just print more cryptos or reduce the supply to respond to different happenings in the economy; cryptocurrencies have a scarcity on their side which gives them their value. If only 84 million Litecoin exist, then Litecoin operates in a supply and demand market that decides the price based on the scarcity of the supply and how many people are demanding the currency. When a coin halves, the supply then grows at a smaller rate while the demand for that coin grows as its network of people using it grows, making that coin scarce. Traditionally, halvings have given the prices of its associated cryptos some flare, so we are hoping the future looks bright for Litecoin after its halving.

Sarson Funds offers two cryptocurrency funds and serves as an educational resource for financial advisors looking for educational guidance on the emerging crypto market.

Led by Wall Street veteran turned digital asset investor, John Sarson, Sarson Funds (AUM 10mm) leverages its team’s Wall Street expertise to run multiple cryptocurrency investment funds that share a common theme: an emphasis on investment transparency. An important element of this transparency and accessibility around cryptocurrency and blockchain technology is education for both investors and financial professionals.

Pundits Say No One Transacts With Cryptocurrency. Here Is Why They Are Wrong

When conversations about cryptocurrencies arise, the question of how crypto can be used is often the common denominator. Despite beliefs that cryptocurrency is illegitimate because of its digital existence and lack of a “real” asset-backing, people often forget that the U.S. dollar ditched the gold standard decades ago, and that the value of the dollar is based solely off of a supporting belief system that empowers a piece of paper. Just like the dollar, cryptocurrencies are backed by a belief system that give them legitimate value.

Digital currencies are forms of currency, what’s not to believe? Individuals, companies, websites, and governments are all slowing but surely making and accepting their own cryptocurrency transactions.

Ohio now allows its residents to pay their taxes in Bitcoin, just like the NYC coin and Aspencoin will soon be used to enable its holders to buy real estate in those areas. Similarly, Microsoft, Shopify, and Overstock.com are among the pioneers of accepting cryptocurrencies as a payment for their products.

More recently, credit card companies like Visa and Mastercard have begun to take their own approaches to implementing crypto into their systems. Visa released a partnership with major cryptocurrency to USD online payment system, Bitpay, that allows the instant conversion of Bitcoin (BTC) and Bitcoin Cash (BCH) to dollars that can be spent on a supported Visa card. Likewise, Mastercard recently partnered with Facebook to support the development of the tech giant’s new crypto, Libra.

Cryptocurrency, as much as it is seeming to become a long term store of value, is a currency. Just like your dollar, the network of crypto-transactions is picking up momentum, fast. The aforementioned uses of cryptocurrencies are only a few of the growing number of individuals, vendors, and organizations worldwide that have jumped on to the crypto train and are trailblazing the way to what could be the future of finance.

TREND SPOTTING: Tokenized Investment Funds

Cointelegraph recently reported the proposed launch of a $25 Million ‘tokenized’ movie venture fund led by iconic American actor Wesley Snipes. This is the first blockchain project launched by Snipes, who is best known for his roles in Demolition Man, The Blade Trilogy, Passenger 57 and other lauded high-budget action films. The development fund focuses on projects produced directly by Snipes and his production studio, Maandi House, so we classify this as a rare yet appropriate use of celebrity endorsement.

This is not the first venture fund to be tokenized. Boston-based CosimoX holds the bragging rights for the first tokenized venture fund.

Tokenization reduces the administrative costs associated with on-boarding many small individual investors. It also streamlines the distribution of fund proceeds. Tokenized funds can appeal to large groups of people that share a specific common trait (in this example fans of Mr. Snipes), but may not be sufficiently affluent to stroke the six-figure checks traditionally associated with movie venture funds.

Once tokenized on a blockchain, unlimited number of investors can participate in the funding of the world’s next great action movie….

Wait there is more: Tokenized funds, depending on the regulations of the country in which they are domiciled, can offer investors immediately open secondary markets – creating a nice liquidity feature for investors where one previously did not exist.

At Sarson Funds, we predict that tokenization of investment funds will continue to grow in popularity, because of the cost-savings and investor base expanding benefits offered to fund sponsors.

Sadly, US-based operators (and investors) stand poised to lose out on the growth of the Tokenization industry as funds like Mr. Snipes’ select countries like Liechtenstein for their progressive blockchain regulations.

Cryptocurrency Market Outlook – Q4 2019

To the investment community,

After an exciting and profitable second quarter, cryptocurrency prices spent the summer months headed lower, with selling pressure culminating in late September with the lackluster debut of Intercontinental Group’s crypto-futures-experiment Baakt. After reaching a high price of over $14,000 in June, Bitcoin and other cryptocurrencies proceeded to fall for three consecutive months, with Bitcoin’s price finally stabilizing around $8,150. Bitcoin’s peak-to-trough correction of just over 40% comes following a stellar second quarter for cryptocurrencies with many, including Bitcoin, rallying 300% or more. Despite these negative short-term price trends, we believe prices are headed higher and that many blockchains will see their token prices reaching new all-time highs in the not-too-distant-future.

While volatility remains an ever-present factor in these early stages of digital asset investing, we are confident that the Bitcoin investment thesis remains very much intact. We believe this because we are still noticing an accelerating pace of growth for cryptocurrency networks both in the United States and around the world. The markets for alternative cryptocurrencies (aka “alt-coins”) have shown a high level of correlation to Bitcoin during the 2019 recovery and we expect that to continue for the foreseeable future.

At Sarson Funds, we feel the correction that the market just experienced was normal for an over-excited market within the confines of a broader uptrend. We share the opinion of Standpoint Research’s Ronnie Moas in his most recent note on crypto. (Thank you, Jim F. for sharing.)

For people in the stock market, 40% corrections are not normal … but in crypto… where volatility is 2 to 3 times what it is in the stock market … this is actually a normal correction.” – Ronnie Moas

Our analysts measure the value of Bitcoin and other cryptocurrencies by measuring the growth of their networks (Metcalfe Value) and by the pace of institutional adoption. We see both metrics accelerating on a year-over-year basis. It must be noted, that these important metrics are also ahead of where they were when Bitcoin last made headlines in late 2017.

We remain confident in previously shared forecasts and continue to see constructive industry regulations being implemented in the US and in other G20 countries (excluding Saudi Arabia). Bitcoin seems to be on its way to being normalized into existing financial frameworks. We don’t think it will be very long before Bitcoin and other cryptocurrencies see their prices rise to reflect the increasingly digital future of finance and the world.

Warm regards,

John Sarson

Managing Partner & CIO

Sarson Funds


Sarson Funds is a provider of blockchain technology and cryptocurrency marketing and educational services that focuses on serving the financial professional community. At Sarson Funds, we believe that disruptive innovation deserves thoughtful unbiased education and user-friendly investment products. In collaboration with our investment manager partners, we work to bring Wall Street caliber standards for research, risk management and transparency to digital asset investing. Please join us as we watch blockchain technology powered companies and innovations bring real solutions to some of the world’s most challenging problems.