Brian Estes, Chief Investment Officer of Off the Chain Capital, explores the ethical and financial dimensions of Bitcoin.
He argues that Bitcoin offers a moral alternative to fiat currencies, which he describes as flawed due to inflation and government overreach. By highlighting Bitcoin’s fixed supply of 21 million coins, Estes explains how its decentralised nature protects against the dilution of purchasing power, which he equates to theft of time and energy.
Estes also addresses common investor concerns. He explains valuation methods for Bitcoin, including stock-to-flow analysis and Metcalfe’s law, which quantify its scarcity and network utility. He argues that Bitcoin fits into modern investment portfolios by redefining the “efficient frontier”, demonstrating that a mix of Bitcoin and stocks can yield optimal returns while reducing risk. Regarding volatility, Estes emphasises position sizing as a key strategy for managing risk.
Finally, he tackles criticisms of Bitcoin’s environmental impact, pointing out that most mining is powered by renewable energy.
Estes concludes by affirming Bitcoin’s long-term dominance in the cryptocurrency space, describing it as a transformative force in finance and ethics.
