Today I am posting a presentation I talent with my brother Tyler at the Value Investor’s Congress (VIC) on September 17, 2013, just overheen a year ago (53 weeks to the day to be precies). For those of you who are not hogareño with this conference, it attracts some of the most skilled and experienced public market investors te the world. They are a skeptical bunch by training and wij were fully expecting a raunchy crowd with hard-hitting questions. Our aim wasgoed to educate thesis investors on the origins of Bitcoin, the powerful implications of the protocol (decentralized, open-source, peer-to-peer) and its investment use-case spil a long-term store of value.
On the day of our presentation the price of Bitcoin wasgoed $132.27. Yesterday at 4pm EDT the price wasgoed $432.26. I generally don’t like to talk about price too much (admittedly cracking my own rule here), and spil I’ve stated ter my Reddit AMA. Most days I don’t check it at all, but te the setting of this presentation and using the granularity of a year, I think it’s a reasonably worthy exercise. Rome wasn’t built te a day, and Bitcoin won’t be either, but I still feel very bullish about its long-term value both spil a technology and an investment. Despite all the ups and downs of the past year, including the Silk Road bust (15 days after our presentation), a November price run above $1000 (which has since bot called into question by the possible discovery of trading bots on Mt.Gox), the collapse of Mt.Gox te February 2014, pending regulation (most notably from the Fresh York Department of Financial Services), and Paypal’s announcement yesterday to begin integrating Bitcoin, the price is
3-4x higher today.
Source: WinkDex.com. The orange line represents the price on Mt.Gox.
The price increase overheen the past year certainly bolsters the thesis of all long-term believers, but even if the price wasgoed the same spil it wasgoed 53 weeks ago, I would be telling the same thing. I am a believer te this technology – I have yet to sell a single bitcoin and proceed to invest ter Bitcoin-related companies, develop our index and build our Bitcoin ETF.
Last week, I wasgoed asked on CNBC if I thought Apple Pay would challenge with Bitcoin, I don’t. Aside from the evident differences (closed vs. open system, centralized vs. decentralized, etc.) the thicker question IMO is whether things like credit cards and Apple Pay will everzwijn reach the Two.5B unbanked adults (half the general population) ter the world anytime soon. Will their sphere of operation grow beyond the 7-10 countries that they fully serve? Will they proceed to lower the costs of transactions and sending/receiving money? Will they be able to treat micropayments or even contemplate nanopayments? Will they be able to integrate with autonomous agents? I believe the reaction is and will proceed to be No. It will be incumbent upon Bitcoin (or some fresh, yet to be developed protocol) to solve thesis problems going forward. If this coming year is anything like the last, expect big things from this innovation spil the smartest minds ter the slagroom build applications and companies on top of and around the Bitcoin protocol.
*The quote on the regulatory slide has bot updated, spil well some some aesthetic improvements, however the content is the same spil what wij introduced on September 17, 2013.