Bitcoin As An Investment with Nate Maddrey
Despite being just over 10 years old, Bitcoin has experienced bear and bull markets. All the while, its value as an asset class has been misunderstood by traditional institutions and crypto enthusiasts alike. Today we speak with Nate Maddrey, Senior Analyst for Coin Metric, about why he believes you should consider investing in Bitcoin. We open our conversation by exploring the possibilities of on-chain analytics, which allows you to analyze the data of every Bitcoin transaction. We then dive into how Bitcoin evolved alongside a loss of trust in financial institutions and how Bitcoin solves many of the problems found in traditional trust-based economic models. After touching on how Bitcoin empowers individual stakeholders, we discuss Bitcoin’s rise from obscurity to becoming a battle-tested asset class. With Nate’s help, we answer the question of whether it’s too late to start investing in Bitcoin. From investing in an asset that can’t be seized or inflated by institutions, we explore Bitcoin’s maturity, market opportunities, its place within an investment portfolio, and how it compares with other asset classes and stocks. Near the end of the episode, we reflect on the impact that institutions are having on Bitcoin and why Bitcoin’s story seems to have only just begun.
Key Points From This Episode:
• Nate introduces himself and his role at Coin Metrics, a leading crypto asset data provider.
• How on-chain analytics provide incredible access to data about crypto transactions.
• Unpacking Bitcoin’s characteristics and why it should be seen as an asset class.
• How Bitcoin evolved in relation to the financial industry.
• Predictable economic assurances and comparing Bitcoin to traditional financial institutions.
• Bitcoin’s open structure and how this flips the old model of keeping data behind closed doors.
• Exploring Bitcoin’s history as a game-changing technology that appeared out of nowhere.
• Why Bitcoin enthusiasts see its organic evolution and anonymous origins as a key feature.
• The view that Bitcoin is still early in its path to monetization.
• Investing in digital gold; the many market opportunities that Bitcoin presents.
• Why Bitcoin is more than a payment network.
• Bitcoin’s perfect fit within diversified investment portfolios and its low correlation with other assets.
• Nate answers the big question, “Is Bitcoin mature enough to be an institutional asset?”
• Comparing Bitcoin’s trading volume and liquidity against FANG stocks and other asset classes.
• Why institutions have neglected Bitcoin and the impact that they could have on Bitcoin’s ethos.
“Bitcoin was founded in 2009 as a direct response to the 2008 financial crisis and the loss of trust in our traditional financial institutions.” — @natemaddrey
“One of the exciting things about Bitcoin is you can send 10 million dollars’ worth of Bitcoin to the other side of the world for a couple of dollars and have it settle within 10 minutes to an hour.” — @natemaddrey
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