What defines us is what we transmit, so today I want to answer one of the most recurring questions I have been asked throughout 2021, Why Belobaba? The answer is sometimes so simple and obvious that you can’t explain it well, so without further ado and without further detours, let’s go ahead with the answer.
Why Belobaba was born is very easy to answer. Belobaba arises from a group of people who just want to do what we do best and be where we are most comfortable, it’s as simple as that. It is natural for us to move and work within the cryptocurrency sector, either because of our profile, personal and professional experience and because we have been witnessing for quite some time now the unprecedented talent drain towards the more technological sector, leaving the traditional one. This is undoubtedly causing a drop in terms of the creation of new and ambitious projects with great expectations.
We just needed to get to know each other, lay the foundations, draw the right lines and have the alternative ready to launch Belobaba as a fully regulated fund of funds with 100% crypto essence. The goal is clear to us, to launch a mega machine that is not only a very powerful vehicle for monetary traction towards new financial systems and a new capital market, but also an example within the industry not only for investing in it, but also for working to disseminate, train and use blockchain technology. A mixture that is pushing us with the same energy with which a rocket travels the first 400 km to leave the earth and go to Mars.
As a rule, all the people who form Belobaba are always attentive to both, new opportunities and the risks attached to them, it is a simple numbers game, if it comes out positive we move forward and if it comes out negative we reorganize. But first let’s put several things in context, since not everyone is clear about our vision and will certainly not share our expectations, let’s put our cards on the table:
- We know that fixed income and equities no longer generate engagement, what is safe is not profitable and money seeks new challenges, new products where it can settle and be attractive again.
- We know that fiat money only encourages us to consume, to spend it to feel good, which is why we seek not only a new way of investing for our clients, but also a method that secondarily protects its value and encourages savings.
- We know that money has gone from being traded from paper to software and from software to code, with this I have just summarized the last 40-50 years of the traditional financial system and its evolution towards a new system. This code, which is now applied to money, has the power and virtue of changing the order of things.
- We know that we must accompany and be present in the current demographic and generational change to offer an alternative and thematic investment according to these changes.
- We know that the Fed and the entire world economic system in general are doing it wrong, it is a tremendous mistake to actively inflate a bubble in bonds, stocks and real estate, without having a plan to stop it.
- We know that disaster is guaranteed in the markets and that both blockchain and cryptocurrencies will be tools to use to avoid epic and unrecoverable consequences.
- We know that with historical year-over-year inflation of 7.5% and fed funds at 0, nothing can go right. It is an explosive combination that should have been stopped a long time ago.
- And finally we know that the real rate after inflation is -5.52%, the lowest in 50 years. No economically rational investor would buy something with the guarantee of losing that much money every year.
Therefor Blockchain and the whole web of nodes, defi, nfs, icos, idos, bitcoin, altcoins perfectly complies with Nassim Nicholas Taleb’s concept of anti-fragility, as money gets better with all this mess and becomes more resilient by not being subject to a single company, person or corporation in its management.
It seems that executive directors, commercial directors and CEOs of private banks or traditional investment funds are quite clear (when talking about bitcoin, ethereum or the rest of cryptocurrencies), the objections and arguments against these digital assets, but it seems that the advantages are more difficult to see or prefer to ignore.
The cryptocurrency market capitalizes only 1,700 billion dollars (note that 10 years ago there were a handful of dollars inside and 50 cryptocurrencies without little perspective), DEFI captures around 200 billion dollars (a sector that exploded only 2 years ago). By contrast, asset manager BlackRock manages $10,000 billion in 34 years of history. I don’t think I need to provide more data to begin to understand just one of the small reasons why Belobaba seeks its niche, fights for its vision and works every day to be prepared to know how to channel the huge transfer of money that is coming.
Says about Bitcoin that the decorrelation of bitcoin with other markets, including the strongest and most approved by all investors in the world is increasingly evident, especially in times of uncertainty like the one we are living now. We come from a pandemic (bitcoin on March 1, 2020 was trading at $ 8,567, post pandemic reached $ 67,145) and now we face a war event with uncertain consequences for all, bitcoin is trading at $ 40,000. Investment funds do not stop accumulating and positioning themselves with this anti-inflation asset, accumulating to date a whopping 850,000 BTC between all of them.
On the other hand, money continues to flow every day into this market, where digital dollars continue to enter with the same trend and strength as it has for some time and the amount of bitcoin on the exchanges (supply/demand) is depleting, marking minimum values never seen before in this sector.
About Ethereum, last week it had $128 million in revenue, it has outperformed gold this week during the market crash and one of the largest banks in the world BNY Mellon will allow its customers to hold ETH. Their network hashrate is at ATH marking 1137 TH/s, a mobile wallet will soon be launched in ethereum layer 2, and puma has already changed their twitter profile to puma.eth.
Unlike Warren Buffett, where he announced this past February in his annual letter to investors that “He can’t find ideas that excite him to invest in ”, we find hundreds of opportunities every month to invest in talent (which is what really matters) in hundreds of wonderful tech startups with blockchain development, startups that are working on offering unique experiences in the digital plane, not only based on entertainment and leisure, but on satisfying each and every need that people, creators, companies or that commerce may have. For all this we feel very grateful to live from inside this disruptive and radical change in the front row is a privilege that only few will have, I return to the times where Coca Cola, Google, Apple, MC Donald’s, Johnson & Johnson, Tesla… emerged.
To finish this article, and given the continuous demands that this market is subjecting to (which makes us think differently), to say that “Belobaba does not chase prices, does not focus on charts and does not act under news. We focus solely and exclusively on investing in talent and solutions, a talent that knows where the human being is going and knows where society and states are going, and solutions capable of leading all this evolution”. Under these premises, our bases, working thesis and understanding of the ecosystem that is being built are governed in:
#Bitcoin, the evolution of the store of value.
#Ethereum, the evolution of cash.
#DeFi, the evolution of finance.
#NFT’s, the evolution of art.
#Metaverse, the evolution of the internet.
#Web 3, the evolution of property.
#DAO Infrastructure, the evolution of business.
#Gaming, the evolution from play and win to play and own.