Analyst Reviews Own Firm’s Report on Bitcoin
Prominent crypto analyst and researcher, Tuur Demeester, shared his thoughts on a Bitcoin report his firm, Adamant Research, published back in April 2023. He reviewed their analysis and recommendations in a detailed social media thread on X.
Why Bitcoin Is Undervalued
Demeester suggests Bitcoin is currently undervalued when considering its role as a long-term Store of Value due to macroeconomic trends where traditional financial instruments like bonds are in a bearish cycle, and inflation is making a comeback. He implies that the market has yet to fully recognize Bitcoin’s potential as a hedge against economic instability and inflationary pressures, marking it as undervalued.
Macro Tailwinds Bolstering Bitcoin
Demeester discussed how current macroeconomic trends, such as the resurgence of inflation and a bearish turn in bond markets, are creating favorable conditions for Bitcoin’s growth. He highlights global economic over-indebtedness, which he believes will lead to a shift in spending towards basic economic needs and a flight to real stores of value, benefiting Bitcoin.
Nation-State Adoption of Bitcoin
Demeester predicts a stealthy yet continuous incorporation of Bitcoin into national financial strategies. He also sees a growing recognition at the governmental level of Bitcoin’s utility and value, with central banks potentially using Bitcoin to strengthen their balance sheets.
Investment Strategies in Bitcoin
Demeester provides advice for investing in Bitcoin, weighing the merits of lump-sum investing against dollar-cost averaging, and suggesting allocation strategies ranging from a conservative hedge to a more aggressive retirement strategy.
Bitcoin Custody and Security
He looks at the complexities of Bitcoin custody, discussing the trade-offs and his advocated approach of Collaborative Custody, which balances security with control.
Hot Take
Demeester’s insights validate the potential of Bitcoin as a store of value, a hedge against inflation, and an essential element of future investment and asset allocation strategies, perhaps motivating more traditional investors, corporations, and nation-states to explore incorporating Bitcoin into their long-term financial holdings.
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