Why GVT isn’t what YOU Think

This is actually a rebuttal to some counter arguments made in a Reddit post by “poopinacan22" https://www.reddit.com/r/genesisvision/comments/82q8x3/why_gvt_isnt_what_you_think/

In the original post, the author brings up 3 really great points, two of which I will expand my thoughts on.

1. Long Term Investments such as index funds typically out perform actively managed funds.

Just ask Warren Buffet and his bet on the SP500

I agree with this sentiment 100%, and it is backed by plenty of data, but what the author does not realize is that Genesis Vision could be the platform for many crypto ETFs and index funds to be created. Genesis Vision could be the disruptor of a multi-trillion dollar market.

Creating an ETF the old way requires going through the SEC, requires tons of regulatory oversight, and takes FOREVER

With Genesis Vision a manager can create an new index fund and raise capital in mere minutes.

Not all money mangers on GVT have to be active day traders.

The reason we did not see many traders adopt the “EFT” strategy in the GV Tournament is because the tournament only lasted for little over a week. This proves that in the short term, active trading DOES provide the opportunity for greater gains at a MUCH GREATER RISK.

On the GV platform, there will be managers who will day trade and seek greatest returns over a short period of time, and there will also be conservative managers who curate a carefully crafted list of cryptos to distribute funds into. And ultimately, it is up to YOU to determine your own risk exposure.

GV Platform will have both Active Managers and ETF Style Passive Managers

2. 11% returns per week are “Magical”

And I would also agree, YES THEY ARE! However, keep in mind, we are playing in the cyrpto space, and crazy things happen every day.

In fact if you had 11% gains for 52 weeks straight that would be 22,740% per year!

Is it impossible??? No. In fact, if you bought Ripple or NEM on 1/1/2017, by 12/31/2017 you would have far exceeded 11% per week.

Now imagine if you had experienced managers curating the portfolio of cryptos like a Vanguard would. The gains could easily exceed the rate of growth if they are managed and traded on a somewhat passive level.

Additionally, the author states that profits from trading will be eaten away by multi-million dollar algorithms.

Two counterpoints to this:

1. Algorithms trade on Technicals. Altcoins, where the most growth potential happens are subject to whale manipulation and throw a lot of technical analysis off. Additionally, may altcoins simply do not have enough volume for a trade bot to be effective. However, I do believe bots will be successful in high volume coins such as BTC or ETH.

For the majority of altcoins, I believe fundamental analysis beats technical analysis.

(I got in on GVT not because of its technical indicators)

2. Look at what happened to Binance today (3/7/2018). Trading bots area huge risk. I don’t need to elaborate on this more.

Finally, I want to thank “poopinacan22” for writing such a great post on Reddit. It brought up a lot of great points of discussion, and surely has increased the understanding of the Genesis Vision Project to many new readers.