[Re-sent] SMM: (ed.9) When bitcoin is fundamental & legacy markets are idiosyncratic

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The Sound Money journey has led me to great minds, wonderful questions, and exciting opportunities. I am looking forward to sharing more about those opportunities with you in the months ahead.

In this month’s article I share a conversation with a thoughtful asset manager as we grappled with the role bitcoin plays in an investment portfolio. I think it is relevant to the layman but let me know what you think.

TLDR:

It can be tricky to position bitcoin in a portfolio that allocates according to various economic and financial regimes. You cannot pigeonhole bitcoin neatly into these regimes. Wresting at this conclusion is a mistake, though. Bitcoin’s self-reinforcing network effects could imply that no stable equilibrium exists. The inability to neatly measure value relative to traditional financial markets must dictate obliviousness to this technological revolution. Different asset allocation frameworks are required.

Full article HERE

For specific asset allocation frameworks to overcome the challenge presented in this article, I recommend reading:

• Bitcoin is venture capital

• Don't believe in bitcoin, understand Store of value

• Bitcoin is a no-brainer, get off zero

• How much should I allocate to bitcoin?

• Tech disruption framework; bitcoin is undervalued at $20K

Have a great weekend!