Scarce Assets E001: Value Investing via Bitcoin with Preston Pysh
January 9, 2024
On the debut episode of Scarce Assets, a show presented by Onramp, investor and podcaster Preston Pysh applies a value-investing framework to bitcoin — how he values it under conservative assumptions, why he believes financial advisors will eventually take it seriously, the MSTR playbook, FinCEN regulation, and how he approaches allocation sizing and dollar-cost averaging.
Preston Pysh joins Andy Edstrom and Jesse Myers for the debut episode of Scarce Assets. The conversation applies a value-investing lens to bitcoin: how Pysh thinks about valuing it with conservative assumptions, when financial advisors will take it seriously, market inefficiencies and the MSTR playbook, the FinCEN regulatory backdrop, allocation sizing, dollar-cost averaging, and mining centralization.
Chapters
0:00 - Introduction to Scarce Assets 5:12 - Valuing bitcoin & upside potential 14:47 - Conservative assumptions & long-term perspectives 22:49 - When will financial advisors take bitcoin seriously? 29:02 - Market inefficiencies & the MSTR playbook 40:33 - A message from Onramp 40:49 - FinCEN & regulations 53:09 - The challenges of bitcoin education 59:30 - Bitcoin's cyclical nature 1:03:34 - Sizing a bitcoin allocation 1:07:30 - The importance of dollar-cost-averaging 1:17:30 - Potential centralization in bitcoin mining 1:22:29 - Investing in bitcoin companies 1:26:22 - Wrapping up
Frequently Asked Questions
How does Preston Pysh value bitcoin?
Pysh walks through valuing bitcoin and its upside potential (5:12), stressing conservative assumptions and long-term perspectives (14:47). His framework is his own view, not investment advice from Onramp.
What is the MSTR playbook discussed in the episode?
The hosts and Pysh discuss market inefficiencies and MicroStrategy's approach of using capital markets to accumulate bitcoin (29:02) — an early look at what later became the bitcoin treasury company trend.
What does the episode cover on regulation?
A segment covers FinCEN and bitcoin regulation (40:49), including the 2023 FinCEN proposal linked in the episode and its implications for bitcoin users.
What does Pysh say about allocation and timing?
Later segments cover bitcoin's cyclical nature (59:30), sizing a bitcoin allocation (1:03:34), and the role of dollar-cost averaging (1:07:30), framed as how Pysh approaches the problem rather than a recommendation.
This episode is editorial and educational content. Onramp does not provide tax, legal, or investment advice. Bitcoin is volatile and may lose value. Past performance does not guarantee future results.