Scarce Assets E001: Value Investing via Bitcoin with Preston Pysh

Full Episode Below

Overview

In this inaugural episode of “Scarce Assets,” host Andy Edstrom and co-host Jesse Myers kick off the podcast with guest Preston Pysh, a prominent figure in both traditional finance and the Bitcoin space. They delve into the world of Bitcoin, its value as an investment, and the broader implications of its adoption. The episode covers a range of topics from Bitcoin’s scarcity and growth potential to the current state of Bitcoin mining and the recent regulatory proposals that could impact the industry.

Key Themes

• Bitcoin’s Economic Role: Bitcoin is discussed as a unique economic entity with a supply that remains unaffected by demand, positioning it as a hedge against currency debasement.
• Valuing Bitcoin vs. Traditional Assets: Preston Pysh provides an in-depth comparison of Bitcoin’s growth potential against traditional equity investments, discussing price-to-earnings ratios and the intrinsic value of assets.
• The Future of Bitcoin Adoption: The conversation touches on the potential for a “super cycle” of Bitcoin adoption and the factors that could lead to hyperbitcoinization, as well as the importance of education for investors at different stages of the Bitcoin cycle.
• Bitcoin Mining and Decentralization: The episode explores concerns about the centralization of Bitcoin mining and proposes solutions to maintain the decentralized nature of the network.
• Regulatory Environment: Preston Pysh discusses a recent regulatory proposal from FinCEN and its potential impact on Bitcoin, urging listeners to participate in the public commentary process to protect their rights.

Best Quotes

• “You pick any four-year period historically in Bitcoin, and when you look at what that compound annual growth rate is, on the high end, over a four-year period of time, it was 178% annualized.” – Preston Pysh
• “The number one thing I hear from value investors on Bitcoin is, ‘Well, how do you value it? What’s the intrinsic value?'” – Preston Pysh
• “America does not have to get this right. Bitcoin will be successful whether they figure it out or not.” – Preston Pysh
• “I think the attack would be somewhat obvious to the world if that attack vector was exercised and maybe give the community enough time to form a thoughtful response to such an attack.” – Preston Pysh on Bitcoin mining centralization concerns

Conclusion

The discussion on “Scarce Assets” with Preston Pysh offers valuable insights into Bitcoin’s role in the modern economy, its comparison to traditional assets, and the potential pathways to widespread adoption. As Bitcoin continues to challenge conventional financial paradigms, it becomes increasingly important for investors and the public to stay informed and engaged, especially in the face of regulatory developments that could shape the future of digital assets. With the halving event on the horizon, the excitement around Bitcoin’s prospects is palpable, and continued dialogue on podcasts like “Scarce Assets” plays a crucial role in fostering a well-informed community.