With all of the volatility in the stock markets, it would be easy to forget about Bitcoin as it’s not the most volatile asset across the tech universe anymore (that crown goes to small caps and dare we mention SPACs). Even solid cloud companies like Shopify are down more YTD and on a 1-year basis than the highly debated yet leading cryptocurrency. We are using Shopify as an example because it’s a solid #2 for market share in e-commerce.
YTD:
(53%) SHOP
(6.8%) BTC
1-YEAR:
(50.9%) SHOP
(12.7%) BTC
It's true that BTC is down 50% from ATHs but long-term investors are essentially flat over a year's time frame while Shopify investors have lost two years of gains. Both have solid long-term stories and will continue to see gains yet it's Bitcoin's narrative around volatility — and whether it's less safe than stocks — that should be questioned.
The I/O Fund has outperformed even crypto market returns on Bitcoin due to our active trading stance. We have bought Bitcoin during many crypto selloffs and trimmed when it appears to be topping out, as you can view in this chart here. We always have an eye on the crypto market and this selloff is no exception as both myself and Portfolio Manager, Knox Ridley, recently had media opportunities where we discussed why Bitcoin continues to have a leading allocation in our portfolio.
In this exciting media clip, Knox answers some very pointed questions by CoinDesk that they had not prepared him for – including how can the I/O Fund say it’s a store of value? – what proof do we have? Fair question and I’d say his answer settles the debate.
He also discusses how gold compares to crypto in terms of volatility with some surprising statistics about Bitcoin’s outperformance.
In the next video clip, you’ll hear me discuss my overarching Bitcoin thesis which I first released to our free newsletter in July of 2019. We check-in on this thesis and how it’s faring. Main points from this clip include proof that Bitcoin has a large addressable market, and how we predicted economic uncertainty, mobile payments and institutional adoption would ultimately drive gains in this asset.
We summarize our thesis including a free download of our full-length premium report from 2019 here. In two brief weeks since this interview was first recorded, Ukraine has helped prove the point on economic uncertainty that we discuss in this clip. We also emphasize that United States investors need to think outside their own bias towards a stable banking system and look to the behavior of crypto adoption in countries with lower GDP.
The I/O Fund is a team of analysts who share their research publicly as they build a portfolio of 20 stocks. Our team has record results for a retail Fund and we also have four-digit gains on some of our free newsletter coverage. You can learn more about our premium service by clicking here or sign up for our free newsletter here.by clicking here or sign up for our free newsletter here.
Disclaimer: This is not financial advice. Please consult with your financial advisor in regards to any stocks you buy.