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

For private consultation, investor or advisor review, please contact Truvestments Capital LLC:

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855-955-1982

digitalassets@truvestments.com