In September 2017, a fictional U.S.-based hedge fund manager is confronted with a question from

one of his limited partners (LPs) regarding the sharp rise in price of bitcoin and its suitability for

the fund he manages. The case contains price and other financial information on bitcoin, as well

as information on bitcoin's history and purpose. By presenting bitcoin as an investment dilemma,

the case allows for a deeper dive into the genesis and evolution of bitcoin and examines its recent

ascendance, the ways it is created and used, as well as the potential risks and rewards.

Answer the following general questions in your presentation:

1.

Briefly summarize the key points of the Case. Include, where appropriate, explanations of

principal ideas and important formulas or equations.

2.

Describe the relevance of the Case to the "Alternative Investments" course.

Answer the following specific questions related to the note in your presentation:

1.

Should John Brown buy bitcoin or any other digital currency? Why or why not? Should he

consider a short position instead? Is bitcoin a long-term investment asset or a short-term

trade?

2.

Is bitcoin an asset, a commodity, or a currency? Does it matter? How does one buy

bitcoins? How are they created? Why were they created in the first place? What are they

used for?

3.

How is bitcoin separate from blockchain?

4.

Why has the price of bitcoin increased over 500% in such a short amount of time? What

factors may be behind its sharp rise in price? What are potential risks of buying bitcoin at

this time?

5.

What is the regulatory response thus far regarding bitcoin? How should Brown factor

potential regulation into his investment thesis