Investment Strategy
Over the past decade, the bitcoin network has been the most secure public blockchain. This is because it has by far the highest market capitalization and hash rate in the asset class, along with customized hardware required to mine it, meaning that the cost for a potential attacker to try to control 51% of the hash rate for a lengthy period of … [Read more...]
One of the most powerful things to look for in an investment is a network effect. A network effect is an attribute of a company or other system such that as more people use the network, the network becomes exponentially more valuable for each user. It's one of the strongest economic moats that a system can have against competitors. This … [Read more...]
"Japanification" in the economic sense refers to the stagnation that Japan's economy has faced over the past three decades, and is typically applied in reference to the concern among economists that other developed countries will follow along the same path. As a visual, here's Japan's long-term nominal GDP in US dollar terms: Chart … [Read more...]
Several months ago, I began exploring the lending ecosystem around bitcoin and other digital assets, and in particular found BlockFi to be interesting. With BlockFi, folks can earn interest on their bitcoin or their cash, or use their bitcoin as collateral for low interest loans. This article explores how that works and what the risks and … [Read more...]
Published: January 11, 2021 One of the concerns I've seen aimed at Bitcoin is the claim that it's a Ponzi scheme. The argument suggests that because the Bitcoin network is continually reliant on new people buying in, that eventually it will collapse in price as new buyers are exhausted. So, this article takes a serious look at the concern by … [Read more...]