In my 2021 end-of-year essay[1], I shared my path to Bitcoin, the vision for Ten31[2], and my views about investing in Bitcoin infrastructure. Despite Bitcoin irrefutably being the most secure network with the longest history, the most decentralization, largest “market cap,” and best brand (among other factors) there is very clearly an imbalance in capital disproportionately allocated to “crypto” and underweight in the Bitcoin ecosystem. This creates tremendous asymmetry for investing in Bitcoin companies, which has not yet been appreciated by most and remains one of the most overlooked and best-kept secrets in the industry at present. Following my previous essay, I wanted to share further thoughts on the opportunity I see in investing in Bitcoin infrastructure and how a Bitcoin-oriented world will impact investing going forward.
The Economic Case For Investing In Bitcoin Infrastructure
To see value, you need to think differently …
What is the key to being a great investor? Is sound investment judgment an innate capability, or can you learn it? In my 15 years as a professional investor, I’ve found that investment judgment develops over time. You must have personal honesty and discipline. You must know when you should say “no” and be willing to do it. You should learn not just from the deals you do but also from those you don’t. But above all else, what I have found key to investing well is independent thought. That is, being yourself and challenging the norm, and seeing value where others do not. In my experience this usually comes from one of three sources:
- Getting there first / being early (“unearthing value others have not”)
- Having proprietary information / insights: not just unique information but also unique capabilities to capitalize on the information and insights you
