“When you’re a kid, you know what a black hole is, it’s a hole that’s bigger than the universe,” says Steve Jurvetson, a former venture capitalist who has spent decades tracking the market.
“The market’s like the black hole in the middle of the universe.”
For example, a black market market for bitcoin in the early days of its development was the perfect opportunity for hackers to sell stolen digital currency for a fraction of its value, Jurvechtson says.
When you build a portfolio around these things, you can get away with it, because the market is so competitive.
It’s very easy to get into a position where it’s difficult to get out of.
The new book, which is being published by Penguin, tells the story of a trader who built a $1.5 million fund with an annualized return of over 80%. “
The people that bought in the bitcoin bubble, they got into a black-hole position where they were paying a premium for bitcoin because it was so much more volatile than the dollar, and they were selling it at a premium,” Jurvecht says.
The new book, which is being published by Penguin, tells the story of a trader who built a $1.5 million fund with an annualized return of over 80%.
He was eventually sold by a competitor to a hedge fund with a return of just 10%.
“There are some really great books out there, but this one really took the cake,” Jurvetson says, referring to the book’s title.
Jurvedtson has spent the past 10 years studying the market, which has been dominated by “bubble” investors.
He says the bubble-like investors often have the same problem: The market is dominated by people who have a lot of money.
“They have the biggest positions, they’re very bullish on their positions, and so they don’t care about the fundamentals of the market,” Jurvedtsons says.
“They think it’s going to crash in 10 minutes.
And it never does.”
A lot of the time, a lot happens in the blink of an eye.
Jurvechesen’s book shows how one of those bubbles could become the next “black holes” of the world’s investment portfolios.
The first black hole, the “blue whale” theory, is the best example.
As the bubble began to burst in 2008, hedge fund manager Robert Wachter, a billionaire who had been in the business for more than a decade, put his entire hedge fund into the cryptocurrency market, according to the report.
In January 2009, Wachters firm, First Capital, began trading at a high premium.
At the same time, the value of bitcoin dropped from around $2,200 per bitcoin to $800 per bitcoin.
By April of the following year, Wacha was out.
Within two years, Wager was the most popular trader in the cryptocurrency space, with $5.6 billion in total assets under management.
He still holds an $8.7 billion stake in Bitcoinica, the company that runs Bitcoin.
Jury is also a part of a group that has created a “blue-belly” fund, which he calls a “salt of the earth” fund.
He said he was drawn to this idea because it has no risk.
Jurvesen says the best-known example of this is the “Ponzi scheme” in California.
California is the second-largest U.S. state, after New York.
And the state is home to the largest bitcoin trading market in the world, with more than $500 million in trade.
But that’s only one side of the coin.
In 2012, the state’s state auditor charged Wachts investment company, SecondMarket, with a series of fraudulent and illegal practices that led to losses of nearly $100 million.
The charges were eventually dropped.
In June, the Securities and Exchange Commission fined SecondMarket $15 million for failing to file reports on all of its activities.
The SEC said the company failed to disclose certain information that could have prevented its employees from profiting from the activities of its own affiliates, including a failure to disclose that SecondMarket had oversold the state of California.
SecondMarket did not immediately respond to requests for comment.
While it may seem like a simple, common investment, Jurvesen’s advice to investors is simple.
He says if you want to be a successful investor, you need to be aware of the risks.
“It’s like an investment, it depends on what the returns are going to be,” Jurveson says of investments.
“And if you’re investing in a very volatile market, it could go down the tubes and you could lose a lot.”