Draft slide deck for my presentation in San Jose (conference organized by the Bitcoin Foundation): "Why you should invest in Bitcoin". Here's the eventual presentation: https://www.youtube.com/watch?v=K7LQu-eIOO0

1. Bitcoin as an investment
Tuur Demeester

2. Two questions
• How high will it go?
• How many should I own?

3. Bitcoin as the new gold

4. Topics
• The bubble world we live in
• Is bitcoin a bubble?
• Why is it so volatile?
• When bubbles pop…
• Bitcoin as a solution (Spain, Argentina)
• Back to that valuation
• Practical asset allocation

5. A bubble world

6. Government bond bubble

7. Other bubbles

8. Derivatives bubbleTotal value of investment vehicles worldwide,
in billions of dollars
0
200000
400000
600000
800000
alle fysiek goud en zilver aandelen derivaten

9. Derivatives bubbleFinancial derivatives, according to
the product on which they are
based
100%

10. Is Bitcoin a bubble?

11. Bitcoin vs. Nasdaq…

12. “trade in high volumes at prices that are
considerably at variance with intrinsic values”

13. Crypto currency is a technology!

14. Crypto currency is a technology!

16. we are
here

17. How does one ‘adopt’ Bitcoin?

18. Price of Bitcoin
Madness…

19. … or merely reflecting a
parabolic adoption curve

20. Skype user adoption curve

21. Why is Bitcoin so volatile?
• Speculators
• Inadequate infrastructure

22. Bitcoin is a commodity
“useful or valuable thing,
such as water or time.

23. Bitcoin as a new commodity
Red: Whale oil related words
Blue: Petroleum related words

24. Bitcoin as a new commodity
Yellow: inflation adjusted petroleum price

25. 2010

26. 2011

27. 2011

28. 2012

29. 2013

30. Bottleneck: exchanges

31. Solutions
• Trial and error
• Bitcoin friendly jurisdictions (offshore)
• Decentralized exchange methods
• Growth of goods & services market

32. When bubbles pop…
Example: Latin America
• Bank holidays
• Bond, real estate crash
• Hyperinflation in the currency

33. Public debt,
Latin America then vs. Europe now

34. Public debt,
Latin America then vs. Europe now

35. Public debt,
Latin America then vs. Europe now

36. The fuse of the debt bomb…

37. The fuse of the debt bomb…

38. The end of ‘too big to fail’
[Many countries] lack important powers
needed to resolve systemic institutions,
such as powers to write down and convert
liabilities of a failing institution to equity
(“bail-in”) or to impose a temporary stay
on the exercise of financial contracts”
Financial Stability Board, 15 april 2013
“To G20 Ministers and Central Bank Governors”

42. “Hard money” melt-up

43. Spain pre-Cyprus

44. Spain post-Cyprus

45. Bitcoin survives Argentina

46. ”If they become widely accepted,
virtual currencies could have a
substitution effect on central bank
money.”
Report European Central Bank, october 2012
A new paradigm?

47. Now back to that valuation

48. 1% of all currencies

49. Practical asset allocation
• How many of you have bought Bitcoin?
• Risk reward proposition is extraordinary
• => 1-10% asset allocation

50. Crypto is more than just Bitcoin
My 50 day test portfolio
Category Profit (in Bitcoin)
Bitcoin bonds +0,07%
Bitcoin stocks +6,8%
Altcoins +3.73%

51. Thank you!
Find me at
> TuurDemeester.com