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Yassine Elmandjra Profile picture
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11 Jan, 5 tweets, 2 min read
1/ Bitcoin has blown past all-time highs, yet skeptics continue to claim it has no fundamentals.

In reality, Bitcoin has extremely strong fundamentals... if you know where to look.

Just published part 1 of a 3-part series w/ @kenoshaking & @glassnode
ark-invest.com/articles/analy…
2/ Investors increasingly will appreciate Bitcoin's merits through the lens of a completely new framework. While conventional analytical frameworks are not suitable, Bitcoin offers a unique set of tools that stakeholders can leverage to assess its fundamentals.
3/ Specifically, Bitcoin provides a real-time, global "fact sheet" that publishes data about the network's activity and inner economics. (hint hint: it's called ~the blockchain~)
4/ Market participants can source on-chain data to analyze Bitcoin in more depth than is possible with any other traditional asset. We categorize the depth of analysis with a three-layered pyramid, with lower layers serving as building blocks for higher layers.
5/ In Part 1, we delve into the details of the bottom layer, which allows all stakeholders and market observers to assess the general health of the network.

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Yassine Elmandjra Profile picture
17 Sep 20
Bitcoin is the most compelling monetary asset to emerge since gold.

As the birth of a new asset class, it could scale more than an order of magnitude to the trillions during the next decade

Part 2 is officially here: Bitcoin As An Investment
@coinmetrics
ark-invest.com/white-papers/b…
Five years ago, a $10,000 investment in bitcoin would have delivered a 119% CAGR and would be worth roughly $500,000 today.

In fact, during any yearly holding period since inception through September 1, 2020, bitcoin’s return has been positive, significantly so in most case.
Despite its run, bitcoin is early on its path to monetization, with substantial appreciation potential.

In our view, Bitcoin’s $200 billion market capitalization - or network value - will scale more than an order of magnitude to the trillions during the next decade.
Read 21 tweets
Yassine Elmandjra Profile picture
3 Sep 20
1/ Bitcoin calls into question the very basis of economic organization. No other breakthrough in history will contribute more dramatically to the evolution of monetary systems.

*Just published* w/ @coinmetrics
Bitcoin: A Novel Economic Institution
ark-invest.com/white-papers/b…
2/ The promise of Bitcoin is best understood in relation to traditional financial systems, which rely on
centrally controlled institutions that enforce the rules, record-keeping, and adjudication of the system.
3/ These institutions were created to standardize the exchange of value, manage wealth, and facilitate
economic activity. Ex: Central banks govern monetary policy, while commercial banks custody and manage assets, and centralized payment processors mediate consumer transactions.
Read 17 tweets
Yassine Elmandjra Profile picture
26 Jun 20
Eleven years after Bitcoin’s creation, major financial institutions STILL dismiss it based on outdated arguments:

“bitcoin is too volatile”
“bitcoin is a bubble”
“bitcoin is for criminals”
“bitcoin is wasteful”

Here's why they have it wrong:
ark-invest.com/analyst-resear…
Claim: bitcoin is too volatile
Counter-Claim: bitcoin’s volatility highlights the credibility of its monetary policy

Bitcoin's price is a function of demand relative to its scarce supply. In contrast to modern central banking, it does not prioritize exchange rate stability.
Claim: bitcoin will lose value to ‘forks’ & digital copies
Counter-Claim: bitcoin’s value cannot be replicated by software alone

Forking the Bitcoin network does not create new bitcoin units, much like inflating the Venezuelan bolivar does not add dollars to the US monetary base
Read 7 tweets
Yassine Elmandjra Profile picture
10 Mar 20
1/ The Bitcoin mining FUD is back.

Here's a thread on a few (of many) reasons why Bitcoin mining is *not* doomed:
2/ Bitcoin mining has become extremely competitive on two levels:

1) Hardware manufacturing
2) Mining as an operation
3/ On hardware manufacturing:

Over the last 5 years, ASIC replacement cycles have lengthened significantly. In the early days, they were short, with designs obsolete within months. Companies like Bitmain could iterate rapidly since mining was lagging behind the latest tech node.
Read 23 tweets
Yassine Elmandjra Profile picture
14 Jan 20
1/ Before the creation of Bitcoin, a non-government backed money seemed unattainable.

Fast forward to today.

In just 11 years, Bitcoin has become the closest thing the world has seen to a free market monetary system.
2/ “In the 2000 yrs we've used coins and money, we've never been given a chance to find out what the best money could be” - F.Hayek

No longer is the State issuance of money depriving us of finding out what a good money is.

Bitcoin is the experiment that allows us to experiment.
3/ Bitcoin instills discipline. Its very existence poses a threat to how traditional monetary systems operate.

In the long run, the winning monetary systems will be those providing the highest assurances to wealth protection.
Read 7 tweets
Yassine Elmandjra Profile picture
20 Sep 19
It never ceases to amaze me just how prescient The Sovereign Individual was for its time.

20 years later, applying its ideas to Bitcoin is more relevant than ever.

A thread on the implications of Bitcoin: The Sovereign Individual edition
There is no development that will contribute more dramatically to the disaggregation of sovereignty and the rise of government à la carte than the emergence of a non-state money that transcends physical borders.
Human cultures have blind spots. We have no vocabulary to describe paradigm changes in the largest boundaries of life, especially those happening around us. Before an age can be reasonably sandwiched in the "middle" of two other ages, it must have already come to an end.
Read 16 tweets

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