Bitcoin Brief Investment Thesis

Investment Thesis for Bitcoin

Similar to gold, Bitcoin widely considered (not as wide as gold, but still pretty wide):

• as a store of value

• as an inflation hedging ability given its scarcity compared with the supply of fiat money

While it is not perceived as a safe haven like gold, it has its own unique appeal:

• more scarce than gold given its expansion is fixed by an algorithm

• more convenience in being stored and transferred

• harder to be confiscated

One caveat is that while Bitcoin is scarce, the supply of different cryptocurrency acting as a store of value is infinite. However, as described in Shut Up and Hodl Basket, I believe Bitcoin is a religion that its tail risk of going extinct has been reduced dramatically. I believe it has hit an inflection point when Trump's second-term presidency legitimized the use of bitcoins as a country's reserve (not confirmed for the United States as of 2025/02/09, but the serious consideration makes it legitimate enough).

Why Grayscale Bitcoin Mini Trust ETF (BTC)?

I decided to use ETFs (exchange-traded funds) to invest in Bitcoin because it solves the problem of inheritance. Contrary to holding bitcoins directly (self-custody), I do not have to tell my heirs my crypto key (which allows them to instantly take them away from me) and I do not have to worry about them not being able to access my bitcoins when I pass away given securities have a proper process for inheritance.

Grayscale Bitcoin Mini Trust ETF (BTC) is the cheapest ETF with 0.15% expense ratio. It has over $4 billion assets, so it's liquid enough for me to keep accumulating.

Updates

2025/02/09 Initial version of this page

Wrote a brief reason on why I decided to start accumulating bitcoins with a small portion of new money going into my portfolio.

I will put more supporting arguments to this page gradually.