Over the past decade, Bitcoin has ascended into mainstream investment discussions based on 1) increase in value and 2) the rabid nature of its ownership base. Rather than a programmable network, or a transacting medium, Bitcoin has evolved simply into an investment medium – an alternative commodity of sorts. The 45% drop in value over the past month has ignited the same-old debate on the value and utility of Bitcoin. Bitcoin, along with other Cryptocurrencies, are evolving platforms. Therefore, it is critical to keep an open mind to new information and developments, instead of getting locked into a dogmatic belief that is for, or against. Here is the framework for owning Bitcoin the way I see it today.
Pros of Owning Bitcoin
Cons of Owning Bitcoin
When an asset lacks underlying cash flow, price depends on the emotion of the market. Momentum then becomes the strongest emotion. High prices attract buyers and low prices bring on more sellers. If you look at the large swings in bitcoin over the past decade, momentum is the easiest explanation. It is the ultimate confidence game.
This material does not constitute an offer or solicitation to purchase an interest in Latticework Partners, LP (the "Fund"). Such an offer will only be made by means of a confidential offering memorandum and only in those jurisdictions where permitted by law. An investment in the Fund is speculative and is subject to a risk of loss, including a risk of loss of principal. There is no secondary market for interests in the Fund and none is expected to develop. No assurance can be given that the Fund will achieve its objective or that an investor will receive a return of all or part of its investment.
This material contains certain forward-looking statements and projections regarding the future performance and asset allocation of the Fund. These projections are included for illustrative purposes only, are inherently speculative as they relate to future events, and may not be realized as described. These forward-looking statements will not be updated in future.
I am an investor and these are my personal thoughts on investing, behavioral finance, markets, and sports viewed through the prism of a Latticework