September2024 - BTC | Future of Wealth & Private Banking

Bitcoin has potential as a medium of exchange in the future, its current and near-future value proposition is primarily as a store of value. Entrepreneurs in the space should focus on building products and services that cater to this use case.

Youtube Presentation Link

Bitcoin - Store of Value Vehicle (HODL):

1. Bitcoin as Store of Value:
   • The presenter argues that Bitcoin’s primary use case currently is as a store of value, rather than a medium of exchange.
   • Store of value functionality is likely to precede widespread adoption as a medium of exchange.
2. Adoption Curve:
   • Bitcoin is still in the early adopter phase, with significant growth potential.
   • The presenter estimates that widespread adoption as a store of value could occur within the next 10 years.
3. Market Potential:
   • Bitcoin’s current market cap is small compared to traditional assets (1.4 trillion vs. 900 trillion total global assets).
   • There’s potential for Bitcoin to capture a significant portion of traditional asset value, possibly reaching $10 million per BTC.
4. Wealth Transfer:
   • A “demonetization” of traditional assets is occurring as Bitcoin gains value relative to other assets.
   • This represents a potential wealth transfer from traditional assets to Bitcoin.
5. Opportunities for Entrepreneurs:
   • The presenter encourages entrepreneurs to focus on building solutions for store of value use cases rather than payment solutions at this stage.
   • There are opportunities to create user-friendly custody solutions and services for wealthy individuals and institutions.
6. Inheritance and Estate Planning:
   • Bitcoin offers unique advantages for inheritance planning, including jurisdiction-independent transfers and time-locked transactions.
7. Custody Solutions:
   • There’s a need for more user-friendly custody solutions that balance security with ease of use.
   • New digital private banks specializing in Bitcoin services are likely to emerge.
8. Bitcoin as “Cyber Manhattan:
   • The presenter draws an analogy between Bitcoin and Manhattan real estate, suggesting Bitcoin could become a premium, borderless store of value.
9. Advice for Entrepreneurs:
   • Understand the adoption curve and build for the current phase (store of value) rather than future use cases (medium of exchange).
   • Consider the needs of wealthy individuals and institutions when developing Bitcoin-related products and services.