The playbook from my original Bitcoin thesis developed in 2014
As the dominant cryptocurrency in this new regime, Bitcoin surfaced in 2009 and thus began a revolution in the form of a grass roots type of effort which has grown into an over $200 Billion industry of publicly traded blockchain tokens / crypto assets. The industry is substantially larger when taking into consideration the mega-companies including the likes of Bitmain, Coinbase, Binance, and so on (Bitmain is working on an IPO and Coinbase just raised at an $8B valuation).
Many renowned academics, researchers, and professionals claimed bitcoin was dead over and over — but those of us who have been involved in the industry for at least a few years understand that the recent downturn is simply part of a consolidation process which has historically represented a preparation for greater growth. Simply put: programmable, global, decentralized (or not), digital currencies will be a multi trillion dollar market. Further, while it is quite difficult to change the core code which bitcoin was built upon, the protocol continues to evolve and develop over time through the development of 2nd layer applications along with other technical improvements.
Bitcoin now boasts one of the strongest and most secure networks ever created due to the immense compute power dedicated by independent stakeholders (miners) to maintain the network
I was originally drawn to bitcoin in 2014 after the first few hype cycles — and was able to build a position around the $200 lows of that cycle. I was drawn to the asset for a variety of reasons including: economics, technology, ideology, macro — and ran this investment through a variety of my filters which I had previously used to source public equity investments. Bitcoin passed with flying colors and I added it as a position to my portfolio. From 2014–2018 I utilized a diversified strategy which I coined, a strategically skewed market weight cryptocurrency and crypto-derivative portfolio — this portfolio outperformed the broad cryptocurrency market by over 35% since origination. I have a new product and strategy that my team is currently working on and will be happy to share more about this in due time. See my bitcoin investment thesis diagram below.
Bitcoin has had an exceptional run since inception — I continue to be highly bullish on bitcoin in the long term as more application grows, and am also a believer in the digital gold store of value thesis. At the same time, I am genuinely curious what changes Satoshi would have made, considering all we know now...
DISCLAIMER: I have long positions in many cryptocurrencies, and plan to continue adding new positions. Do your own research or speak to your financial adviser before investing in anything.
