Thursday, May 19 2022

Revix has just announced the launch of an Inflation Shield product combining two safe-haven assets – gold and Bitcoin (BTC) – into a single product.

The Inflation Shield combines PaxGold (PAXG), a tokenized version of gold that is fully backed by real gold, and BTC.

In this pack, you get exposure to PAXG, a 1:1 tokenized version backed by physical gold held in London Brink’s vaults, and BTC.

“The objective of this package is to protect your wealth against inflation while minimizing downside risk. Gold has the longest and most successful inflation-fighting track record, but many are beginning to view Bitcoin as “millennial-age digital gold.” The Inflation Shield Bundle is a way to take yesterday’s inflation hedges and blend them with tomorrow’s inflation hedges,” says Brett Hope Robertson, investment analyst at Revix.

The bundle includes 25% BTC and 75% PAXG. This ratio is determined algorithmically and is automatically rebalanced each month.

The product was designed and tested by Revix to maximize returns while minimizing downside risk, adds Hope Robertson.

“It’s a unique approach to protecting against risk, whether it’s the risk of inflation, currency depreciation, war or uncertainty in stock markets. The goal is not to deliver the kind of insane returns we’ve seen from cryptos over the past few years, but to protect and preserve capital, while providing the opportunity to participate in the rise of cryptos.

“It’s like holding gold with a crypto call option attached.”

Algorithmic and rule-based

The gold to BTC ratio is based on a historical risk versus return optimization algorithm. By evaluating past returns over the past seven years, the Inflation Shield ruleset was created, outlining the optimal ratio of gold and BTC that resulted in the highest overall return while minimizing movement. negative prices.

Automatic monthly rebalancing

This package automatically rebalances on the first of each month. This process realigns the weights of gold and BTC by buying or selling each asset to ensure that the ratio remains constant. This guarantees investors exposure to two assets in their optimal proportions to best protect their wealth against the ravages of inflation and uncertainty.

Heritage preservation

Hope Robertson says the bundle is designed to protect wealth during times of market uncertainty and volatility while allowing investors to participate in any upside performance should markets return to normal.

The role of gold as a safe haven in times of crisis

Gold has always been a safe haven in times of uncertainty. An analysis of gold’s response to financial crises between 2008 and 2020 by Sprott Asset Management reinforces gold’s status as a hedge against threats to the financial system, outperforming the S&P 500 and US Treasuries in the six crises examined.

This was particularly visible during the 2020 Covid-19 pandemic, when gold jumped 25%, compared to 18% for the S&P 500 and 8% for US Treasuries.

How gold fared in times of crisis 2008-2020

Source: Revix

As impressive as that sounds, it pales in comparison to Bitcoin’s (BTC) proven ability to shield investors from financial risk.

A recent analysis by CaseBitcoin shows a CAGR of just under 200% over the past decade. The unprecedented growth has by no means gone smoothly, with massive setbacks along the way – 84% in 2018 and 50% in 2021.

Source: Revix

Although BTC has tended to follow financial markets lower in recent months, leading some to question its safe-haven capabilities, there is no doubt that, measured over the longer term, it has provided the best protection in the last decade – and perhaps in history – against financial risk.

Hope Robertson says BTC’s correlation to indices such as the tech-heavy Nasdaq is likely to prove temporary as BTC has continued to prove itself against all attempts to ban, censor and censor it. to diminish.

“Previously, gold was the default safe-haven asset, and it has proven capable of protecting wealth through the ages,” he says. “But never before have we had the opportunity to combine the safe haven functionality of the old world of gold with the functionality of the new world of BTC. We are excited about this product, and believe that, as brilliant as gold is against risk and uncertainty, we have done better by combining it with Bitcoin in this pack.

Who should acquire the Inflation Shield?

Hope Robertson says the product is for anyone concerned about the current market instability or fearing what will happen to their wealth in the months and years to come.

“Essentially, it is designed to protect investors’ wealth from the corrosive powers of inflation and preserve their purchasing power over time, while allowing them to participate in the sudden upswings in the crypto market that appear to be occurring. when market uncertainty subsides.”

Revix Inflation Shield Promotion

Revix launches Inflation Shield on Friday, March 11. With this launch, Revix offers a double promotion.

  1. Revix offers 0% entry fee on Inflation Shield group purchases in ZAR for one week, starting March 11 and ending March 17, 2022.
  2. revix goes cover all losses made on the package until the end of March. All the customer needs to do to participate in the hedging promotion is to make a deposit and invest R20,000 in the package during the free week (March 11-17).

About Revix

Revix brings simplicity, trust and excellent customer service to investing. Its easy-to-use online platform allows anyone to securely hold the world’s best investments with just a few clicks.

Revix guides new clients through the sign-up process to their first deposit and first investment. Once set up, most customers manage their own portfolio but can access support from the Revix team at any time.

For more information, please visit www.revix.com.

Brought to you by Revix.

Moneyweb does not endorse any product or service advertised in sponsored articles on our platform.

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