Hey guys, thanks for your work ! Do you agree that Bitcoin already offers a distinct advantage due to its deflationary characteristics and independence from central bank policies ?. Do you think investors are already recognizing Bitcoin's potential to preserve wealth in times of economic uncertainty, or rather a defensive investment strategy, especially during recession, still excludes Btc and relies on bonds ... ?
Great question, Adam. We view bitcoin as being advantageous during economic uncertainty thanks to its fixed and disinflationary supply, i.e. the supply issuance of BTC decreases as it approaches its 21-million hard cap. Investors understand this value prop, too, but many still trade it as a high-beta risk asset instead of the absolutely scarce asset that its properties enable it to be. We believe that as bitcoin's size grows toward the $15-trillion gold market and the $25-trillion US Treasury market, the market's treatment of BTC as an asset will move further to what it's value prop allows it to be: an absolutely scarce asset that you want to hold in good times and bad, especially during risk-off bouts of uncertainty. We're just not quite there yet. Thanks for your comment, and your readership!
Hey guys, thanks for your work ! Do you agree that Bitcoin already offers a distinct advantage due to its deflationary characteristics and independence from central bank policies ?. Do you think investors are already recognizing Bitcoin's potential to preserve wealth in times of economic uncertainty, or rather a defensive investment strategy, especially during recession, still excludes Btc and relies on bonds ... ?
Hi Adam,
In addition to Joe's fantastic reply, our episode today will be dedicated to answering this question in depth. Hope you enjoy it!
Nik
Great question, Adam. We view bitcoin as being advantageous during economic uncertainty thanks to its fixed and disinflationary supply, i.e. the supply issuance of BTC decreases as it approaches its 21-million hard cap. Investors understand this value prop, too, but many still trade it as a high-beta risk asset instead of the absolutely scarce asset that its properties enable it to be. We believe that as bitcoin's size grows toward the $15-trillion gold market and the $25-trillion US Treasury market, the market's treatment of BTC as an asset will move further to what it's value prop allows it to be: an absolutely scarce asset that you want to hold in good times and bad, especially during risk-off bouts of uncertainty. We're just not quite there yet. Thanks for your comment, and your readership!