Scarce Assets E001: Value Investing via Bitcoin with Preston Pysh
Jan 9, 2024
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Preston Pysh, expert in value investing via Bitcoin, discusses valuing Bitcoin, when financial advisors will take it seriously, market inefficiencies, bitcoin education challenges, sizing a bitcoin allocation, potential centralization in bitcoin mining, and investing in bitcoin companies in this episode of Scarce Assets podcast.
The proposed FinCEN rulemaking on Bitcoin poses a threat to individual rights and privacy, requiring individuals to submit comments to protect their constitutional freedoms.
Bitcoin adoption occurs in four-year cycles, with the having event attracting new adopters; gradual increasing of Bitcoin allocations and investor education are crucial.
Deep dives
The implications of the proposed FinCEN rulemaking on Bitcoin and individual rights
The podcast episode discusses the potential impact of the proposed FinCEN rulemaking on Bitcoin and individual rights. The host highlights the aggressive language and ambiguity in the proposal, which gives the government extensive power to infringe on privacy, freedom of speech, due process, and other constitutional rights. To address this, the host provides a comprehensive, 70-page comment letter that highlights the breaches in constitutional rights and backs them up with supporting case law. The aim is to encourage individuals to submit their own comments and ensure their voices are heard in the regulatory process.
Bitcoin Adoption and Cycle Phases
The podcast episode discusses the phases of Bitcoin adoption in four-year cycles. The first cycle is characterized by speculation, while the second cycle sees a shift towards accumulation and holding Bitcoin. The having event enforces these cycles, attracting new adopters each time. The episode also explores the possibility of a tipping point where the financial system collapses due to national debt, leading to hyper Bitcoinization. The hosts emphasize the importance of gradually increasing Bitcoin allocations in portfolios and the need for investors to educate themselves about the asset.
Decentralization of Bitcoin Mining
The podcast raises concerns about the centralization of Bitcoin mining, particularly regarding mining pools and chip production. The concentration of power in a few mining pools and the centralization of chip production pose risks to the decentralization of Bitcoin. The hosts recommend addressing these risks by promoting transparency in block template selection within mining pools and exploring possible solutions for more distributed chip production. They highlight the importance of raising awareness about these issues and striving for a more decentralized mining landscape.
Scarce Assets: a biweekly podcast presented by Onramp which delves into the emergent role of Bitcoin in finance professionals' strategies and outlooks. Hosted by CFP, Andy Edstrom, and former hedge fund manager, Jesse Myers, Scarce Assets provides invaluable insights for wealth managers aiming to outperform their peers in the decades ahead.
Finance professionals everywhere know about stocks and bonds, but the macroeconomic outlook requires that serious investors pay close attention to another category: Scarce Assets.
0:00 - Introduction to Scarce Assets
5:12 - Valuing bitcoin & upside potential
14:47 - Conservative assumptions & long-term perspectives
22:49 - When will financial advisors take bitcoin seriously?
29:02 - Market inefficiencies & the MSTR playbook
40:33 - A message from Onramp
40:49 - FinCEN & regulations
53:09 - The challenges of bitcoin education
59:30 - Bitcoin's cyclical nature
1:03:34 - Sizing a bitcoin allocation
1:07:30 - The importance of dollar-cost-averaging
1:17:30 - Potential centralization in bitcoin mining
1:22:29 - Investing in bitcoin companies
1:26:22 - Wrapping up
A call to action against FinCEN proposal 2023-0016A:
https://egodeath.capital/blog/fincen-may-be-violating-your-rights-bitcoin
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