Category: analysis

Contextualizing historical bitcoin volatility: Expect 30-40% drawdowns during bull-markets

October 25, 2020

Dear new bitcoiner (useful for all HODLers), Congrats on dipping your toes into the bitcoin waters. Bitcoin has the potential to generate significant benefits for you, your family and your portfolio. Benefits will also accrue to our communities as we gravitate towards a sounder money world. In this note I contextualize historical bitcoin volatility so … More Contextualizing historical bitcoin volatility: Expect 30-40% drawdowns during bull-markets

Grayscale, Institutional BTC access and premium

October 23, 2020

The Grayscale Bitcoin Trust (GBTC) is a favoured avenue for institutional investors to gain access to bitcoin due to the ease of execution via traditional investment accounts. In this article I highlight a few of the advantages and disadvantages of the trust. The premium between the GBTC price and the actual undervaluing value of the … More Grayscale, Institutional BTC access and premium

BTC vs. ETH: (Part 2) Protocol certainty

October 21, 2020

Part 1 explained the basic differences between Ethereum and bitcoin. The future is uncertain for both assets, but in different ways. Bitcoin’s protocol is ossifying, while Ethereum has protocol uncertainty as it targets lofty “unconstrained” goals. Coming back to the questions from part 1, investors need to consider the value proposition, the need for each … More BTC vs. ETH: (Part 2) Protocol certainty

Sound Money Monthly: (ed. 3) Debt’s unequal impact on wealth

October 9, 2020

Have you ever wondered why it’s challenging to buy a house and save for your family’s future? Debt and its unequal impact on wealth is the focus of this edition of the Sound Money Money. TLDR: Debt is driving wealth inequality. Society will remain at loggerheads until the short-term policies which encourage debt growth are removed. … More Sound Money Monthly: (ed. 3) Debt’s unequal impact on wealth

Dispelling bitcoin risk-asset fears

September 28, 2020

Bitcoin has developed a strong correlation with “risk assets” in 2020. A stronger correlation between bitcoin and global equity markets is an understandable concern for those who consider bitcoin an independent store of value. In this article, I dispel these risk-asset fears. TLDR: the drivers of equity and stores of value can temporarily overlap, but … More Dispelling bitcoin risk-asset fears

Crypto Banking: Yield, Opportunity and Risks

September 23, 2020

TLDR: Emergent crypto banks offer an attractive opportunity, which highlights the innovative potential of crypto vs. ridiculously low rates and high fees in traditional banking. Obviously, crypto yields don’t come without their risks. One could even argue that centralised finance is completely against the ethos of bitcoin. KYC, custody, credit risk and ethical concerns must … More Crypto Banking: Yield, Opportunity and Risks

Bitcoin is a no-Brainer Allocation | Get off zero!

September 18, 2020

I’m often asked, “how much crypto should I hold?” Difficult question to answer. It depends on your conviction in the asset class. One thing is clear in my mind, if you have any interest in managing your personal finances and aren’t living pay-check to pay-check, your allocation should be greater than 1%. In this article … More Bitcoin is a no-Brainer Allocation | Get off zero!

Sound Money Monthly: (ed. 2) “Slang in die Gras” / Snake in the Grass

September 4, 2020

Have you ever wondered how we managed to accumulate so much debt? In this edition we’ll tackle the causes for the biggest debt bubble in history. You’ll learn about short-termism, interest rates and the feedback into politics. Don’t worry, I have no desire to talk about politicians, elections 2020 or go down the Donald Trump … More Sound Money Monthly: (ed. 2) “Slang in die Gras” / Snake in the Grass