Bitcoin: The Digital Gold Rush
Bitcoin as a revolutionary digital asset and store of value.
The Investor Dilemma
1
Concentrated Returns
Nearly all the return in the S&P 500 comes from just 1% of the companies.
2
Underperformance
A conventional diversified portfolio underperforms the Magnificent 7.
3
Limited Alternatives
Most alternative investments are illiquid or not scalable.
Few Assets Outperform Monetary Inflation
14-year annualized return by asset class (2011 – 2024). Bitcoin has significantly outperformed other assets.
Bitcoin's Strong Performance
1
Top Performer
Bitcoin was the strongest asset for 11 of past 14 years.
2
Impressive Returns
Bitcoin ARR is 46% 6yr, 78% 8yr, 65% 10yr, 103% 12yr, 168% 14yr.
3
Outpacing Inflation
Bitcoin has consistently exceeded monetary inflation and cost of capital.
Advocates of Bitcoin Believe
Digital Gold
It's digital gold, capital, and property.
Perfect Money
It's perfect money and the apex digital transformation.
Financial Revolution
It's a revolution in finance and a paradigm shift in economics.
Skeptics of Bitcoin Believe
Too Good to Be True
It's too good to be true and money for criminals.
No Use Case
There's no use case and it's too volatile.
Government Concerns
The government will ban it or it will be obsolesced.
Journey from Skeptic to Believer
1
Denier
1 hour: Initial rejection of Bitcoin concept
2
Skeptic
10 hours: Questioning but curious
3
Trader
100 hours: Experimenting with Bitcoin trading
4
Investor
1000 hours: Long-term belief in Bitcoin's potential
5
Maximalist
Beyond 1000 hours: Full conviction in Bitcoin's supremacy
Bitcoin Requires a Return to First Principles
Bitcoin represents the digital transformation of energy. To understand it, we must examine the history of energy innovations.
Fire: The First Energy Revolution
Early Man
1.5 Million BC: Discovery of fire
Energy Extraction
Fire allowed extraction of energy from matter
Transformation
Converted into heat and light
Water: Harnessing Nature's Flow
Greek/Roman Era
300 BC: Utilization of water power
Mechanical Energy
Extracted energy from flowing water
Applications
Converted into mechanical power for various uses
Steam: Powering the Industrial Revolution
James Watt
1781 AD: Invention of the steam engine
Fire to Motion
Converted fire into mechanical power
Industrial Impact
Revolutionized manufacturing and transportation
Oil: Liquid Energy Revolution
John D. Rockefeller
1870 AD: Oil industry development
Versatile Energy
Chemical energy for various applications
Multiple Uses
Mechanical, thermal, light, electrical energy, and petroleum products
Electricity: Power at a Distance
Thomas Edison
1882 AD: Development of electrical power systems
Energy Transport
Clean energy channeled over long distances
Versatile Conversion
Converted into mechanical, heat, light, and sound energy
Fission: Unleashing Atomic Power
Enrico Fermi
1942 AD: First controlled nuclear chain reaction
Nuclear Energy
Harnessing power from atomic nuclei
Dual Applications
Led to nuclear reactors and nuclear weapons
Bitcoin: The Digital Energy Revolution
Satoshi Nakamoto
2008: Creation of Bitcoin
Digital Energy
Programmable by computers
Space-Time Transfer
Can be channeled through space and time
Bitcoin: Transforming Capital
The most lucrative application of digital energy is the digital transformation of capital.
Global Wealth Distribution
Global wealth is distributed across various assets, with real estate and bonds dominating.
Capital as Economic Energy
Money
Medium of exchange
Wealth
Accumulated assets
Power
Ability to influence
Value
Worth in economic terms
Bitcoin represents the transformation of our capital from financial & physical assets to digital assets.
First Law of Money

1

2

3

1
L = Lifespan of Asset
2
V = Value of Asset
3
M = Maintenance Cost
L = V/M: The lifespan of an asset is determined by its value divided by its maintenance cost.
Financial Assets: Constant Degradation
1
Inflation
Erodes purchasing power over time
2
Regulation
Can limit asset utility and value
3
Political Chaos
Introduces uncertainty and risk
Financial assets constantly degrade in value due to these factors.
Financial Risk Factors
Taxes
Various forms of taxation erode asset value
Competition
Market forces can diminish asset worth
Regulation
Government policies can impact asset utility
These factors, among others, contribute to the dilution of capital in financial assets.
Physical Assets: Subject to Entropy
1
Decay
Natural deterioration over time
2
Maintenance Costs
Ongoing expenses to preserve value
3
Political Instability
Can affect physical asset ownership and value
Physical assets constantly degrade in value due to the laws of entropy and political chaos.
Physical Risk Factors
Property Taxes
Ongoing cost of ownership
Catastrophe
Natural disasters and accidents
Obsolescence
Assets becoming outdated
These factors, among others, contribute to the dilution of capital in physical assets.
Satoshi's Breakthrough
1
Trustless Value Transfer
Method to transfer value without a trusted intermediary
2
Trustless Value Storage
Method to store value without a trusted intermediary
3
Risk Mitigation
Created an asset without the financial risk of currency, stocks, & bonds or the physical risk of real estate or property
Bitcoin: Revolutionary Asset Lifespan
1
Traditional Assets
1-100 year lifespan
2
Bitcoin
Potentially infinite lifespan
Bitcoin offers a revolutionary advance in asset lifespan compared to traditional assets.
Bitcoin as Digital Capital
Invisible
Cannot be physically seen or touched
Indestructible
Cannot be physically destroyed
Immortal
Not subject to decay or degradation
Programmable
Can be coded for various functions
Bitcoin offers the benefits of owning a building, without the liabilities of a conspicuous, immobile asset.
Bitcoin as Global Capital
Bitcoin is superior to foreign debt, equity, real estate, & currency as a capital asset. It's like owning Cyber Manhattan.
Bitcoin Volatility: A Feature, Not a Bug
1
Global Market
Open, real-time, competitive, free capital market trading 8760 hours each year
2
Unrestricted Trading
No limitations on trading, leverage, collateral, or risk
3
Continuous Operation
8760 hours per year vs. 1638 hours for stock exchanges
Benefits of Bitcoin Volatility
For Investors
Volatility delivers superior returns
For Traders
Volatility delivers superior yield
For Financiers
Volatility creates superior ways to securitize the asset class
For Corporations
Volatility creates superior access to capital
Bitcoin Performance: Sharpe Ratios
Bitcoin shows a higher Sharpe ratio, indicating better risk-adjusted returns compared to traditional assets.
Bitcoin vs Other Cryptocurrencies
Bitcoin Dominance (BTC.D) is up from 50% to 58% YoY and growing. Other major cryptos are collapsing against Bitcoin.
What Backs Bitcoin?
Computing Power
700 Exahash of computational power supported by 18.33 Gigawatts of electricity, making it the world's most powerful computing network
Global Investment
$800B in capital invested, representing one of the fastest-growing asset classes in history
Growing User Base
420M crypto users worldwide with 220M Bitcoin holders, showing widespread adoption
Bitcoin is the most powerful crypto network in the world, backed by significant computational power, investment, and user base.
Bitcoin's Evolution: From Idealists to Institutions
1
2008-2014
Idealists and Crypto Cowboys era
2
2015-2020
Early adoption and scaling debates
3
2021-Present
Institutional adoption and mainstream acceptance
Milestones of Institutional Adoption (2008-2017)
1
October 2008
Immaculate Conception of Satoshi
2
May 2010
Pizza Day - First real-world bitcoin transaction
3
March 2014
IRS Designation as Property
4
August 2017
Fork of Bitcoin Cash
Milestones of Institutional Adoption (2017-2022)
1
September 2017
First Bitcoin Miner to go public (Hive)
2
October 2018
Fidelity Digital Assets launched
3
August 2020
MicroStrategy, Square, Tesla, Coinbase adopt bitcoin
4
April 2022
Janet Yellen Satoshi Nakamoto Speech
Recent Milestones of Institutional Adoption (2024-2025)
1
January 2024
Spot Bitcoin ETFs launched
2
May 2024
SAB 121 Repeal Movement in Congress
3
August 2024
Morgan Stanley Approval of IBIT/FBTC for Solicited Sale
4
January 2025
Fair Value Accounting
5
March 2025
US signs executive order establishing Bitcoin Strategic Reserve
The Digital Gold Rush Starts Today
—
Bitcoins Today
Current supply of Bitcoin
You only have 10 years to stake your claim as we approach a point of absolute scarcity.
Approaching Absolute Scarcity
Fixed supply. Backed by energy. No one can centrally control it.
Point99: The Inflection Point
Date
January 2, 2035 (3737 days – 10.2 years from now)
Remaining Supply
1.145m BTC or $71 billion
Daily Issuance
305 BTC, $20m per day
Point99 is when Bitcoin becomes the world's first deflationary asset and perfect money.
Types of Entities Holding Bitcoin
Institutional holders account for 11.2% of total Bitcoin supply as of October 8, 2024.
Global Spot Bitcoin ETPs
—
Bitcoin ETPs
Global Spot Bitcoin ETPs holding over 1 Million Bitcoin
Major financial institutions worldwide now offer Bitcoin ETPs, signaling growing mainstream acceptance.
Publicly Traded Bitcoin-Related Securities
—
Bitcoin Securities
Publicly traded Bitcoin-related securities available
A wide range of Bitcoin-related investment options are now available on public markets.
Factors Driving Bitcoin Adoption and Price
1
Regulatory Approval
Banking custody, trading, and credit approvals
2
Technological Advances
AI integration and big tech adoption
3
Economic Factors
Issuance of sovereign debt by nations worldwide
Advances in technology, improvements in regulation, and economic growth are bullish for bitcoin.
Bitcoin24 Model: Open-Source Macro Forecasting
Create a customized Bitcoin corporate forecast with Bitcoin24, an open-source macro model for predicting Bitcoin's future.
Global Wealth Redistribution by Digital Forces
Digital forces are reshaping the distribution of global wealth, with Bitcoin emerging as a new asset class.
Bitcoin 21-Year Price Forecast
Bear Case: $3M by 2045
A conservative scenario showing Bitcoin's growth from today's $98,000 to $3,000,000, representing moderate market adoption
Base Case: $13M by 2045
The expected scenario projects Bitcoin reaching $13,000,000 with 7% market penetration and 29% annual returns
Bull Case: $49M by 2045
An optimistic scenario where Bitcoin captures 22% of global assets, reaching $49,000,000 per coin
Projections show significant growth potential for Bitcoin over the next two decades. The base case scenario suggests a Bitcoin price of $13M by 2045, with market penetration reaching 7% of global assets and a compound annual return rate of 29%. Even in the bear case, projections indicate substantial growth to $3M per Bitcoin, while the bull case forecasts potential growth to $49M with Bitcoin capturing 22% of global assets.
Macro 21-Year Forecast
Macro assets are projected to shift towards Equity and Bitcoin by 2045, with total global asset value reaching $4,000T.
The MicroStrategy Bitcoin Story
1
Defensive
Initial adoption of Bitcoin as a treasury reserve asset
2
Opportunistic
Expanding Bitcoin holdings and leveraging market opportunities
3
Strategic
Becoming a Bitcoin Development Company
MicroStrategy: The World's First Bitcoin Development Company
Bitcoin Strategy
528,185 bitcoins acquired at an average price of $67,458 per bitcoin. Total market value ~$46 billion.
Business Intelligence
Develops AI-powered enterprise analytics software. FY2023 revenue of $496 million, 78% gross margin.
MicroStrategy Performance Since Bitcoin Adoption
MicroStrategy (MSTR) has outperformed Bitcoin and major indices since adopting its Bitcoin strategy in August 2020.
Top Performing Stocks in the S&P 500
MSTR: MicroStrategy
Leading performer with 554% return since 2020
NVDA: NVIDIA
530% return driven by AI chip demand
AMD: Advanced Micro Devices
280% return in semiconductor sector
TSLA: Tesla
250% return in EV market
META: Meta Platforms
170% return in social media space
MicroStrategy (MSTR) has been one of the top-performing stocks since August 2020, outpacing even tech giants.
MicroStrategy Enterprise Value Growth
—
4-Year Growth
Enterprise value growth from $666 million to $45 billion
MicroStrategy's enterprise value has grown significantly since adopting its Bitcoin strategy.
The Future of Bitcoin
Technological Advancements
Continued integration with AI and big tech
Regulatory Evolution
Potential for more favorable global regulations
Economic Impact
Increasing role in global financial systems
The future of Bitcoin looks promising with potential advancements in technology, regulation, and economic integration.
Conclusion: The Digital Gold Rush
1
Transformative Asset
Bitcoin represents a paradigm shift in how we view and store value
2
Institutional Adoption
Growing acceptance from major financial institutions and corporations
3
Future Potential
Projected growth and integration into global financial systems
The digital gold rush is underway, with Bitcoin at the forefront of a new era in finance and technology.
Thank You
This material was written and printed with the intent to provided general financial and retirement education and is not intended as tax, investment or legal advice and may not be relied on for the purpose of evading any State or Federal tax penalties. This financial professional presentation is being provided as a general source of educational information and should not be used as the primary basis for financial or investment decisions. It should not be construed as advice designed to meet the particular needs of any individual situation or as an offer to buy or sell any security at any time in any jurisdiction. Participants are encouraged to seek professional advice for areas dealing with their taxes, legal situations and any financial planning needs.
Any and all references herein to portfolio elements, positions or results are from past performance and include no back-testing. It is vital to always understand that past performance does not, in any way, reference, imply, direct, suggest, promise or guarantee any matter or result related to any possible future performance. All investing carries risk and can result in the entire loss of capital invested. Nothing in this presentation is FDIC guaranteed and should never be perceived as such.
Any opinions shared herein are from the presenter only and are subject to change at any time. Fee-based financial planning and investment advisory services are offered by Truvestments Capital, LLC, a SEC-Registered Investment Advisor..
some data referenced comes from www.michael.com
Truvestments Digital Asset Legacy Fund I
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