Search on TFTC

Value Investing Via Bitcoin

Jan 10, 2024

Value Investing Via Bitcoin

Value Investing Via Bitcoin

Key Takeaways

The podcast episode with Andy Edstrom, Jesse Myers, and Preston Pysh offers a wealth of insights into Bitcoin's value, the state of the market, and the future of Bitcoin mining and regulation. Here are the core topics, themes, and insights discussed:

  • Bitcoin's Value Proposition: Preston Pysh highlighted the extraordinary return on investment of Bitcoin compared to traditional asset classes like equities. He emphasized the importance of understanding the Price to Earnings (PE) ratio when evaluating investments and compared this to Bitcoin's historical compound annual growth rate (CAGR), which has been significantly higher than that of quality stocks.
  • Investment Strategies: The guests discussed various approaches to Bitcoin investment, including the importance of position sizing relative to risk tolerance and the potential need for a dollar-cost averaging strategy as Bitcoin's price appreciates.
  • Bitcoin and the Macro Environment: The conversation touched upon how Bitcoin's scarcity and supply inelasticity position it as a hedge against monetary inflation and currency debasement.
  • Mining Centralization Risks: The topic of mining centralization was addressed, with concerns about ASIC availability and the control exerted by mining pools. Preston Pysh suggested potential mitigations and stressed the need for continued discussion and innovation in this area.
  • Regulatory Challenges: Preston Pysh's in-depth analysis of the proposed FinCEN rule changes was shared, highlighting potential constitutional breaches. He encouraged listeners to actively participate in the public comment process to help shape a conducive regulatory environment for Bitcoin.
  • Bitcoin Adoption Cycle: The discussion revealed a consensus that Bitcoin adoption will likely continue in cycles, with each halving event attracting a new wave of adopters who gradually shift from speculation to long-term holding.
  • Advice for Professional Investors: Pysh argued that professional investors have a fiduciary duty to consider Bitcoin, given its performance and potential for portfolio diversification and inflation protection.

Best Quotes

  • "Bitcoin is the scarcest asset in the world, and if you want to preserve your wealth, you have to convert that currency into an asset that's scarce, desirable, portable, durable, and maintainable." - Introduction to the podcast episode.
  • "Instead of collecting taxes by peering into the back rails of transactions, you move taxation to sales tax... that's the transition to a Bitcoin standard." - Preston Pysh on potential shifts in taxation methods in a Bitcoin-dominant world.
  • "It's nonsensical today for a professional money manager or financial advisor to not take a client question about Bitcoin seriously... I would actually think that they're in neglect of their fiduciary duty at this point." - Preston Pysh on the responsibility of financial professionals to consider Bitcoin.
  • "The irony of this statement is at the beginning of 2026 is going to be probably the peak of somebody wanting to do a complete spot buy on the day just because of the emotional speculative nature of it, and that is the exact moment when they need the DCA probably the longest." - Preston Pysh on the timing of Bitcoin investments relative to market cycles.
  • "I want to see America be the home of the internet of value. We got it so right with the internet of information... here is the next big wave of innovation, Bitcoin specifically, not crypto, and we have the opportunity to retain that home field advantage." - Andy Edstrom on the importance of nurturing Bitcoin innovation in the U.S.


The podcast episode presents a compelling vision of Bitcoin's unique economic proposition, its potential impact on investment strategies, and broader societal and financial systems. Preston Pysh's detailed analysis of Bitcoin's valuation relative to traditional assets underscores its standout performance and the imperative for serious consideration by investors. The conversation on mining centralization and regulatory challenges called for proactive community engagement and innovation to safeguard Bitcoin's decentralized ethos. The episode concludes with a unifying message of hope and excitement for the future of Bitcoin, despite potential regulatory hurdles and market cycles, signaling a bright outlook for those who understand and commit to Bitcoin's long-term value proposition.


Current Block Height

Current Mempool Size

Current Difficulty