Bitcoin As An Investment

While many investors question its merit, we believe bitcoin could be the most compelling monetary asset since gold.

In Part 1 of this research, we described how we believe Bitcoin, a novel economic institution, satisfies the four assurances that maximize the probability of a robust and predictable financial system. In this paper, we explore bitcoin as an emerging monetary asset.

We believe its rapid growth has positioned bitcoin to earn an allocation in well diversified investment portfolios. Bitcoin offers one of the most compelling risk-reward profiles among assets, as our analysis suggests it should scale from roughly $200 billion today to $1-5 trillion network capitalization during the next five to ten years. In our view, capital allocators must consider the opportunity cost that will be associated with ignoring bitcoin as a new asset class.