SMM: (ed.9) When bitcoin is fundamental & legacy markets are idiosyncratic

Today, bitcoin is idiosyncratic to traditional financial markets. Unlike bonds, equity and property, bitcoin’s returns are uncorrelated with economic growth, inflation, or risk premia. Bitcoin is related to these variables insofar as unsound money makes sound money more attractive, but no observable correlation exists. As a result, it can be tricky to position bitcoin in … More SMM: (ed.9) When bitcoin is fundamental & legacy markets are idiosyncratic

Don’t “believe” in bitcoin; understand Store of Value, Stock-to-Flow and Network Effects

“Do you believe bitcoin?” “Do you believe in gold?” This line of questioning makes it sound like there is something mystical or religious about these store of value assets. Yes, people talk about gold and bitcoin with religious fervor, but gold is precious for a reason and the same logic is applicable to bitcoin. The … More Don’t “believe” in bitcoin; understand Store of Value, Stock-to-Flow and Network Effects