Ternary Intelligence, a company engaged in computational modeling of financial markets and digital money platform Uphold today launched Hedged Bitcoin, an investment strategy designed to allow investors to reap the rewards of an upward market, while also reducing the impact of downturns.
Hedged Bitcoin uses the science of complex systems to detect market crowding and then allocates customer funds between bitcoin and US dollars in order to reduce the risk of significant losses while capitalizing on major upturns. Similar to the concept of investing in gold or Swiss francs when the US dollar isn’t performing – the objective is to offer customers a more stable set of returns…
One year on from bitcoin’s all-time high of almost $20,000 many 2018 investors in the original cryptocurrency are licking their wounds with prices crashing over 80% to below $3500 today. Hedged Bitcoin aims to reduce that volatility, protecting your investment from plunging in a bear market.
The joint offering allows for current bitcoin holders as well as those who are new, to invest in a volatile asset, confident that their investment will be more secure. It is, in short, an attractive option for the mitigation of risk in markets such as we’ve just experienced.
“This type of methodology was previously only available to hedge funds. Now through Hedged Bitcoin, we’ve created an online cryptocurrency investment service that can be used by new retail investors, as well as those that have been investing for some time. The technology behind it identifies early signs of instabilities in the market, and proactively protects a user’s investment”.
Ternary Intelligence’s backtesting over the past five years shows that the strategy used for Hedged Bitcoin delivers 95% of the average compound annual growth rate of traditional buy and hold bitcoin, with less than a third of the downside.
“At Uphold, we’re leveraging the power of blockchain technology to enable groundbreaking personal finance products for the consumer audience. Bitcoin and cryptocurrency have had a lot of media attention over the past year, and are becoming an investment option for more people. In this bear market, Hedged Bitcoin allows consumers to tap into the enormous potential upside, while reducing risk-exposure. I think we are going to see more people than ever investing in bitcoin in the foreseeable future, with Hedged Bitcoin being at the very center of investment strategies.”
Testing results can be found in the White Paper.