What Bitcoin Did

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Credit Risk & The Bitcoin Hedge with Greg Foss & Andy Edstrom

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Credit Risk & The Bitcoin Hedge with Greg Foss & Andy Edstrom - WBD402 Peter McCormack

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Location: Remotely
Date: Thursday 23rd September
Company: Validus Power Corp, Swan Bitcoin
Role: Bitcoin Strategist, Head of Institutional Investment

Over the last week, markets worldwide were hit hard as fears continue to grow over the liquidity of Chinese property behemoth Evergrande. The S&P, Dow Jones and Nasdaq all suffered their worst days in months.

Evergrande is China's second-largest and the world's most indebted real estate developer. It expanded rapidly by borrowing more than $300 billion. however, when new rules were introduced to control the amount owed by big large estate developers, Evergrande was forced to sell properties at a significant discount and is now struggling to pay its debts.

In 2008, the Great Financial Crisis began with an insolvent institution which precipitated a credit panic across the global banking system. When markets are saturated with debt, a single event can turn into a contagion.

Will Evergrande spark another financial meltdown, or will it prove to be too big to fail?

In this interview, I talk to the Head of Institutional Investment at Swan Bitcoin and Bitcoin Strategist Greg Foss. We discuss the Evergrande insolvency, whether a debt crisis is looming, and why Bitcoin is the perfect hedge.


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00:04:23: Introductions
00:06:31: Evergrande overview
00:09:56:
The 60/40 rule and the distressed debt market
00:14:04:
Evergrande comparison to Lehman Brothers
00:16:44:
Chinese investment structure
00:22:45:
Impacts on the high-yield market
00:24:54:
Impact on Bitcoin
00:27:37:
The Tether factor
00:32:20: How f*cked are we?
00:43:31: Peter's financial strategy
00:44:48:
Greg's financial strategy
00:49:51:
Long vol/short vol explained
00:53:44:
Bitcoin is insurance
00:57:36:
Why people may still be averse to Bitcoin
01:05:11: Banking in El Salvador and the neobank takeover
01:12:39: Final comments


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