SAN FRANCISCO--(BUSINESS WIRE)--Last month, bitcoin plunged. But much of the loss could have been avoided. A new investment strategy, launched today by Ternary Intelligence on the Uphold platform is designed to dramatically reduce the effects of downturns, while keeping investors exposed to the long-term upside potential of one of the world’s most volatile assets.
An investor holding $10,000 in bitcoin on November 1 would have seen their holdings plummet to $6,700 by the end of November - a 33% loss on their investment in just a month. Had that same consumer invested via Hedged Bitcoin, they would have been protected from more than 70% of the drop and saved $2,400*, experiencing a much milder downturn of just 9%.
Created using the science of complex systems that identifies patterns in gene expression, molecular transitions, crowd behavior, and tectonic plates, Hedged Bitcoin is an algorithmic investment application designed to take advantage of the upside potential of bitcoin while dramatically reducing downside risk for consumers.
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 designed for the global mass consumer audience,” said JP Thieriot, Co-Founder and CEO of Uphold. “In the last five years, bitcoin has seen appreciation rates as high as 12,800%**. But it has also seen drawdowns as damaging as -85%. Hedged Bitcoin will enable consumers to tap into the enormous potential upside, while significantly reducing risk-exposure. It's specifically designed to preserve value appreciation.”
Hedged Bitcoin uses the science of complex systems to detect market crowding and shifts customer funds out of bitcoin and into US dollars in order to avoid major drawdowns. With no minimum investment and no lock-up period, Hedged Bitcoin is poised to democratize access and enable global participation in cryptocurrency. The primary use cases include:
- Retail Investors: New users who are curious about cryptocurrency and are keen to participate in the potential upside, but are unsure of when to buy.
- Current Bitcoin Holders: Hedged Bitcoin provides a 'protective wrapper' for those who are 'long' on bitcoin to preserve value appreciation by avoiding dramatic crashes.
- Self-Directed IRAs and Solo 401K Investors: Looking for alternative retirement investments with higher growth potential but more manageable risks.
“With our sophisticated science-based investment strategy and Uphold’s global digital money platform, we’ve created a trusted online cryptocurrency investment service for everyday users,” said Beau Giannini, CEO of Ternary Intelligence. “Previously only available to hedge funds, our proprietary detection technology identifies early signs of market instabilities and protects users from excessive volatility.”
Hedged Bitcoin is available exclusively on Uphold. A more detailed explanation of the testing results can be found in the White Paper. For additional information on Hedged Bitcoin, visit: HedgedBitcoin.com or Uphold.com/en/hedged-bitcoin.
Uphold is the creator of an open, trusted and transparent digital money platform that lets users quickly and safely access traditional currencies, cryptocurrencies, and other investments all in one place. Uphold has powered over $4 billion in transactions across 184 countries, in more than 30 supported currencies and four commodities.
The Uphold platform provides access to a wide range of currencies and investments available in one place, with transparency and security. Uphold is the only company to publish real-time reserve holdings. Uphold has offices in San Francisco, Portugal, London and Mexico City. More information can be found at www.uphold.com, or follow us on Twitter, Facebook, and LinkedIn. Not licensed in all jurisdictions.
About Ternary Intelligence:
Ternary Intelligence is engaged in computational modeling of financial markets. Its approach integrates econophysics, complex networks, machine learning and artificial intelligence with quantitative finance, unifying both theory-based and data-driven perspectives. More information can be found at TernaryIntelligence.com.
* According to backtests conducted by Ternary Intelligence for the
period November 1st - 30th 2018.
** Period covered January 15th, 2015 to December 18th, 2017.