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Lionschain Capital - Why Invest In Crypto?

May 2019

posted by Lionschain Capital
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Lionschain Capital - Why Invest In Crypto?


Created in 2009 by the pseudonymous Satoshi Nakamoto, Bitcoin is an open source, non-state-backed finance network. The launch of Bitcoin debuted the use of blockchain technology. Blockchain technology enabled the creation of digital scarcity. The native currency of the Bitcoin network is the crypto commodity BTC. The Bitcoin network is operated by a public mesh of node operators, which process transactions and monitor the state of the limited supply of 21 million BTC on a global decentralized ledger. The network operators automatically prevent double spending of BTC and reneging transactions; creating a dependable, secure method of digital value transfer.


Historically, money has primarily existed as a unit of account and means of exchange backed by commodities. Over the past 100 years, money has moved away from being commodity-backed (for example by gold) to being state-backed (fiat). This presents a challenge on a global financial scale, where nation-states are able to increase the money supply, essentially taxing the holders of the currency through inflation, and provides little incentives to minimize national debt (as they can always just print more!). Since the movement away from commodity-backed currency, the USD, for example, has lost roughly 95% of it’s purchasing power over the last 80 years.


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ALL ALPHAMAVEN CONTENT IS FOR INFORMATIONAL PURPOSES ONLY. CONTENT POSTED BY MEMBERS DOES NOT NECESSARILY REFLECT THE OPINION OR BELIEFS OF ALPHAMAVEN AND HAS NOT ALWAYS BEEN INDEPENDENTLY VERIFIED BY ALPHAMAVEN. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THIS IS NOT A SOLICITATION FOR INVESTMENT. THE MATERIAL PROVIDED HEREIN IS FOR INFORMATIONAL PURPOSES ONLY. IT DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY INTERESTS OF ANY FUND OR ANY OTHER SECURITIES. ANY SUCH OFFERINGS CAN BE MADE ONLY IN ACCORDANCE WITH THE TERMS AND CONDITIONS SET FORTH IN THE INVESTMENT'S PRIVATE PLACEMENT MEMORANDUM. PRIOR TO INVESTING, INVESTORS ARE STRONGLY URGED TO REVIEW CAREFULLY THE PRIVATE PLACEMENT MEMORANDUM (INCLUDING THE RISK FACTORS DESCRIBED THEREIN), THE LIMITED PARTNERSHIP AGREEMENT AND THE SUBSCRIPTION DOCUMENTS, TO ASK SUCH QUESTIONS OF THE INVESTMENT MANAGER AS THEY DEEM APPROPRIATE, AND TO DISCUSS ANY PROSPECTIVE INVESTMENT IN THE FUND WITH THEIR LEGAL AND TAX ADVISERS IN ORDER TO MAKE AN INDEPENDENT DETERMINATION OF THE SUITABILITY AND CONSEQUENCES OF AN INVESTMENT.