A large portion of my adult life is spent researching publicly traded securities. I’m a value investor in my free time and my profession is financial advice. While there are some great companies at reasonable valuations in this market, Bitcoin is the most exciting opportunity that I’m aware of.
In 2017, I conflated cryptocurrencies with tulip mania. My career as a financial advisor blinded me to the incredible opportunity. It’s not that I didn’t research Bitcoin and blockchain technology, I just somehow failed to internalize it. In fairness, a lot has changed since 2017.
Bitcoin might be the best alternative asset on earth. It can be accepted just about anywhere in the world, in any amount, and with nothing physical exchanged. Bitcoin is decentralized and the supply is truly finite. What things can we say are truly finite? Wall street and the military industrial complex do not control it, and cannot exploit it.
Most dollar functions perform better on a blockchain already. Right now I can earn 10% (USD terms) on my emergency fund balance, 6% on my bitcoin, and I can borrow bitcoin collateralized dollars at 4%. I can transfer any amount across the world and even exchange it into any fiat currency for next-to-free.
The building blocks to facilitate just about any financial function is in the works. Anyone on the Bitcoin network will be able to borrow, lend, act as exchanges, market makers, or offer annuities, and life insurance. There’s no shareholders, lawyers, intermediaries or salespeople. Costs are low and convenience is high.
The U.S. government and many large governments around the world are working on regulating Bitcoin, not banning it. Major institutions are moving into the space, such as Fidelity, BlackRock, PayPal, and Goldman Sachs. Wall Street can offer services built for the blockchains, but they will never control the blockchains.
Between being finite, easily divisible, trustworthy, globally recognized, and potentially leading to an undermining of Wall Street, Bitcoin has my vote. I believe Bitcoin has already won. It’s the most sought after and institutionalized cryptocurrency.
The utility Bitcoin provides, and the stores of value it will replace, are way larger than the current ~$300B market capitalization. The upside is many orders of magnitude.
Disclosure: I’m long Bitcoin with 25% of my net worth.