Bitcoin Investment Primer

TEST - EXECUTIVE SUMMARY

Bitcoin represents a paradigm shift in the concept of money and value storage. It is a decentralized digital asset often described as “digital gold” which offers institutional investors a unique opportunity to diversify their portfolios with an emerging asset that is growing on virtually all measurable parameters.

With a current network value (i.e. market capitalisation) of approximately $1.7 trillion, Bitcoin has established itself as a legitimate financial asset with significant growth potential—positioned to capture market share from traditional stores of value like gold (currently valued at $19 trillion).

Key Takeaways:

Bitcoin functions as a hedge against currency debasement and inflation, addressing a critical concern for long-term wealth preservation.
Major financial institutions are rapidly adopting and promoting Bitcoin, transforming it from an alternative investment into a mainstream portfolio asset.
The regulatory framework continues to develop globally, creating clearer pathways for legitimate investment while maintaining appropriate oversight.
Bitcoin is the only globally recognized asset that can bypass capital controls and resist confiscation, making it particularly valuable in politically uncertain regions.
A small strategic allocation (1-5%) can meaningfully enhance portfolio returns while introducing limited correlation to traditional assets.

As a non-sovereign, digitally scarce asset with a mathematically guaranteed fixed supply of 21 million coins, Bitcoin offers institutional investors an unprecedented opportunity to position their portfolios for the ongoing digital transformation of the global economy.

INTRODUCTION

Created in 2009 in response to the Global Financial Crisis, Bitcoin was designed as a peer-to-peer electronic cash system that operates without central authority. What began as an experimental digital currency has evolved into a globally recognized store of value and a new financial asset. Bitcoin's core innovation lies in solving the "double-spending problem" through its blockchain technology, enabling digital scarcity without requiring a trusted third party. Unlike traditional currencies that can be created at will by central banks, Bitcoin has a fixed supply cap of 21 million coins, with approximately 19.6 million currently in circulation. The remaining coins will be released on a predetermined schedule through a process called "mining," with the final Bitcoin expected to be mined around 2140.

“It might make sense just to get some in case it catches on. If enough people think the same way, that becomes a self-fulfilling prophecy.” - Satoshi Nakamoto