Introducing our General Crypto Investment Thesis
June 25th, 2019
As the most trusted cryptocurrency company, we are passionate about helping people navigate the seemingly complex world of digital assets. Today, we’re pleased to release our first “Crypto Investment Thesis”, which outlines our view on why an ever growing number of people are choosing to use and own digital assets.
Why are we publishing an investment thesis?
Since Blockchain was founded in 2011, bitcoin and other digital asset ownership has grown from thousands of pioneers to over 30 million people today. This phenomenal growth has significantly outpaced the internet’s growth rate (approximately 2x faster) and been characterized by some regulators as a “miracle”.
While the rapidly expanding use of digital assets is undeniable, the reasons behind this growth are not necessarily widely understood or agreed on.
According to recent survey data from the Federal Reserve Bank of New York, the reason why more than ten million Americans own cryptoassets is because they are viewed as a “good investment”. However, the exact opposite reason was given by survey respondents on why the vast majority of Americans do not yet own cryptoassets (who view them as a “bad investment”).
But how can both of these views be correct?
The purpose of our investment thesis is to address these and other seemingly paradoxical questions we often hear about the ownership and use of cryptoassets. Addressing such questions is particularly important given the recent dramatic cryptoasset price action, which has once again brought the world’s attention back to bitcoin and cryptocurrencies.
What you will (and won’t) find in our investment thesis
We already cover the basics on what crypto is and how it works (e.g., you can purchase less than a whole bitcoin; a bitcoin has eight decimal places) on Blockchain’s learning portal.
This thesis instead focuses on why you should consider owning cryptoassets.
While a number of excellent essays have previously been written making the case for crypto, to our knowledge this thesis represents the first comprehensive visualized thesis on the reasons why so many people are passionate (in both a positive and negative sense) about digital assets. We’ve worked hard to make our crypto investment thesis as accessible as possible without compromising on rigor, and sources are provided on each slide.
In this thesis we outline the wide range of ‘pull’ and ‘push’ factors driving growing use of cryptoassets, such as:
- how cryptocurrency can be lower cost and more efficient in certain financial uses cases and contexts
- the ‘digital gold’ thesis for bitcoin
- why more and more people are being drawn towards trust-minimized financial assets and services (what is often referred to as open/decentralized finance, or ‘DeFi’)
We also critically examine some of the frequent criticisms we hear about cryptoassets, such as:
- in contrast with the internet, email, smartphones, social media, and other digital technologies, billions of people have yet to use or own cryptoassets. Are there compelling reasons to believe more and more people will soon own cryptoassets, and if yes, what obstacles still exist?
- the subject of energy consumption estimates for the bitcoin network, which has received frequent coverage in the media. Where should those interested in this topic turn for the most reliable data and useful perspectives?
- are cryptoassets indelibly tainted given their use by criminals?
From tens of millions of people to billions
Today, the vast majority of people are still unclear on why there is so much excitement over bitcoin and other cryptoassets.
Our investment thesis provides a comprehensive view on the reasons why tens of millions of people currently own cryptoassets. It also examines some of the remaining challenges to further expansion in the use and ownership of digital assets. All of the data and sources presented in the thesis are referenced so that readers can perform their own checks and follow-up for additional information.
Like all of our research, this publication is freely available to view or download on our Research page here.