Diversification is a great strategy against uncertainty. Once this is removed it does not make any sense. Imagine a plane going down would you diversifícate your strategy or stick to a parachute. Or a boat sinking will you try creative diverse strategies or put your life jacket and get into a dingy?
Another great article! I appreciate your insight and try to stay up to date with your newsletter. One barrier I've come up against when talking to investors about the value of bitcoin is it being a "non-productive" asset (no cash flow), vs. "productive" assets like stocks. One friend of mine is hung up on this and would rather own stocks because they also typically go up with inflation (many stocks have relatively finite supply compared to USD) and also have a cash flow / productivity helping increase their value.
I think a piece comparing bitcoin to stocks would be great, and I'd be excited to share it with both peers my age (20-somethings) and older investors (family, friends' parents etc. in their 50s/60s).
You didn't mention the most salient "managerial framework to evaluate various capital projects":
career risk
Treasuries, stocks, private equity, VC all share one important characteristic -- low career risk. After the gig is secured people are disincentivized to actually seek out the highest and best return on capital. They want the highest return with the lowest career risk.
Hi Jesse, I’ve written a short post on one way to potentially deal with the lack of enthusiasm for Bitcoin as part of a capital allocation strategy at huge companies throwing off significant cash flows and just returning them to shareholders. Would be very interested in your reaction
Question from a dimwit, so forgive me if it sounds stupid: if the cycle that’s ending next year averages 25% as you suggested it could, wouldn’t that land the post-halving at c. $23k? And then if we continue to see diminishing 4 year average returns, might we only be at c. $47k by the end of the 2028 cycle? That’s based on a starting point of 23k and an average of 20%. Still blows your classic low-risk options out of the water of course.
Diversification is a great strategy against uncertainty. Once this is removed it does not make any sense. Imagine a plane going down would you diversifícate your strategy or stick to a parachute. Or a boat sinking will you try creative diverse strategies or put your life jacket and get into a dingy?
Another banger! 💪🏼😎🔥
Another great article! I appreciate your insight and try to stay up to date with your newsletter. One barrier I've come up against when talking to investors about the value of bitcoin is it being a "non-productive" asset (no cash flow), vs. "productive" assets like stocks. One friend of mine is hung up on this and would rather own stocks because they also typically go up with inflation (many stocks have relatively finite supply compared to USD) and also have a cash flow / productivity helping increase their value.
I think a piece comparing bitcoin to stocks would be great, and I'd be excited to share it with both peers my age (20-somethings) and older investors (family, friends' parents etc. in their 50s/60s).
You didn't mention the most salient "managerial framework to evaluate various capital projects":
career risk
Treasuries, stocks, private equity, VC all share one important characteristic -- low career risk. After the gig is secured people are disincentivized to actually seek out the highest and best return on capital. They want the highest return with the lowest career risk.
Hi Jesse, I’ve written a short post on one way to potentially deal with the lack of enthusiasm for Bitcoin as part of a capital allocation strategy at huge companies throwing off significant cash flows and just returning them to shareholders. Would be very interested in your reaction
https://bitcoinlbo.substack.com/p/a-new-use-case-for-bitcoin-collateral
Question from a dimwit, so forgive me if it sounds stupid: if the cycle that’s ending next year averages 25% as you suggested it could, wouldn’t that land the post-halving at c. $23k? And then if we continue to see diminishing 4 year average returns, might we only be at c. $47k by the end of the 2028 cycle? That’s based on a starting point of 23k and an average of 20%. Still blows your classic low-risk options out of the water of course.