Practical aspects of algorithmic trading.Bitcoin hedge fund.

Gatis Eglitis, Managing PartnerSergey Troshin, Ph.D., Head of IT Strategy and Operations

Part 3: Bitcoin fund

EXANTE

1. 2010 - EXANTE ATP & BO, strong IT focus2. 2011 - Maltese brokerage licence3. 2012 - Hedge fund platform & bitcoin fund

The use of money is all the advantage there is in having money.

Benjamin Franklin

Money1.Durable2.Portable3.Fungible4.Intrinsic value

1.Store of value2.Medium of exchange

3.Unit of account

Aristotle IV BC

W.S. Jevons XIX AD

Money history1. before XI BC - barter2. XI BC, China - bronze knives and spades3. VI BC, Lydia - electrum coins4. XI AD, China - paper money5. XXIX AD, Europe - gold standard6. 1944, USA - Bretton Woods system7. 1971, USA - fiat currencies

Value?

FAITH

Value!

FAITH

Digital currencies

1996

1998

2000

2008

Businesses

Bitcoin

2008 SaToshi NakaMotohttp://bitcoin.org/bitcoin.pdf

Crypto currencies

Exchanges

Technology

Public-keyCryptograp

hy

Open-source

Decentralization

Technology

http://visual.ly/bitcoin-infographic

1PC9aZC4hNX2rmmrt

7uHTfYAS3hRbph4UN p

ub

lic key

pri

vate

key

Mining

Market

7 day average fromhttp://bitcoinity.org/markets/list

4 day average fromhttp://blockchain.info/pools

Market

Quaterly average fromhttp://blockchain.info/charts

RisksLegal Technology Market

Gov’t regulation 51% attack Manipulation

Undefined status Scalability Volatility

Anonymity DDOS attacks Clearing

http://bitcoin.it

State of the artMoney Tulips Fiat Gold Bitcoin

Store of value * **** ***** ****

Medium of exchange **** **** *** *****

Unit of account * **** ** **

http://bitcoin.org

Future

Mining

Technology

Exchange

Business

Commodity

Debts &

Loans

Currency

Pension funds

Derivatives

Although some of the enthusiasm for bitcoin is driven by a distrust of state-issued currency, it is hard to imagine a world where the main currency is based on an extremely complex code understood by only a few and controlled by even fewer, without accountability, arbitration, or recourse.

Francois R. Velde, senior economist (Chicago Fed Letter)

Yep, sounds like the dollar.Reddit commentor

Questions?Gatis Eglitis, Managing Partner

+356 2015 0000, ge@exante.eu

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