An investment in a basket of the top crypto-assets (largely Bitcoin) has the best chance to deliver the most attractive risk-adjusted returns over the next 10-years, compared to less controversial favorites such as Amazon stock, 10-year U.S. Treasuries, an apartment in Manhattan, or other “consensus longs”.

It's a rare, unlevered asset in a levered world....pressure on central banks to print excessively into the foreseeable future, diluting the value of fiat currency.....Smart money (and increasingly, just more money), will flock to unlevered assets that have limited supply – gold, bitcoin, or other alternative assets that aren’t part of the mainstream investment world. Traditional assets such as equities, government / corporate bonds and real estate are all highly levered.

Bitcoin is an asset that is non-correlated (volatile yes, but volatility that is unrelated to fiat investments) and therefore a true method of diversification that boosts the overall portfolio’s risk-reward (e.g. Sharpe, Sortino), and with plenty of upside that is premised on secular and defensible trends.

If you have something that can potentially 50x, you must have 98% conviction that it’s not going to happen for you to not put money in.

Oftentimes, people look at investing in crypto-assets as this binary concept — do I invest given the asymmetric upside, or do I not invest because it’s vaporware that could go to zero? This is a false dilemma. The reconciler is simply a matter of sizing. One must ask themselves, is it worth putting a dollar into the space? The answer is undoubtedly “yes.” How about two dollars, three, four — and you go from there. We believe every well-balanced portfolio includes a crypto-asset allocation — and the only question is one of sizing.