Exploring the Potential of Bitcoin in Portfolios

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The chapter delves into Andy Edstrom's journey of discovering Bitcoin and how it led him to write the book 'Why Buy Bitcoin?'. It discusses the reasons for including Bitcoin in portfolios, highlighting its historical performance, potential for increased value, and ability to reduce volatility. The conversation also covers Bitcoin's role in different risk portfolios, its attributes as a hard money asset, and its potential to attract funds from traditional assets like bonds, real estate, and stocks.

Clay Finck chats with Andy Edstrom about why Bitcoin should be considered as a part of an investment portfolio, how Andy thinks about valuing Bitcoin as an investment, how investors can potentially keep themselves from ‘buying the top’ in Bitcoin, the 14 characteristics of money and how Bitcoin stacks up against gold and fiat currency, some of the common misconceptions around Bitcoin, and much, much more!

Andy Edstrom, CFA, CFP is a wealth manager at Wescap Group and is Managing Director of Swan Advisor Services.

IN THIS EPISODE, YOU’LL LEARN

00:00 - Intro

02:00 - How Andy discovered Bitcoin and ended up buying it.

07:40 - Why investors should consider adding Bitcoin as a part of their portfolio.

07:40 - Why Bitcoin has a lot of potential to continue achieving very high returns.

26:13 - How Andy thinks about the value of Bitcoin today when buying it for his portfolio.

26:13 - How investors can potentially keep themselves from ‘buying the top’ in Bitcoin.

40:53 - Why it’s important to first understand money, what is good money versus what is bad money.

40:53 - What the 14 characteristics of money are.

58:17 - What is driving the continued growth in the adoption of Bitcoin in portfolios?

58:17 - Why El Salvador is embracing Bitcoin and what countries might be next.

01:18:01 - What makes Bitcoin different from all of the other cryptocurrencies?

01:18:01 - Why Bitcoin incentivizes the movement towards renewable and green energy.

01:27:12 - Why the US government is not likely to ban Bitcoin.

And much, much more!

*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Kyle and the other community members.
Check out Swan Advisor Services.
Andy’s book, Why Buy Bitcoin.
Trade Bitcoin with Swan.
Check out TIP’s Mayer Multiple and the Mayer Multiple Twitter Account.
Square and Ark Invest’s Report, Bitcoin is Key to an Abundant, Clean Energy Future.
Explanation of the Lindy Effect.
Related Episode: Listen to MI032: Bitcoin, Cryptocurrencies, and Blockchain (Part 1) w/ Preston Pysh, or watch the video.
Related Episode: Listen to MI044: Bitcoin, COVID-19, And Macroeconomics For Beginners Part 1 w/ Pomp, or watch the video.
Check out the books mentioned in the podcast here.
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