July 2021

Q2 2021 Commentary

Bitcoin Redux: Should Bitcoin be Viewed as a Valid New Asset Class?

In January, 2018, we wrote an investment commentary entitled: A Primer on Bitcoin: Bubble or Bonanza? Triggered by the recent price action and calls from our clients about Bitcoin, we decided it would be timely to review what has transpired in the cryptocurrency markets during the past 3½ years. In our previous essay, we wrote that it was “quite possible that Bitcoin, unlike other manias, might have a more enduring future.” But we also advised investors that investing in Bitcoin (which in this essay we are using as a rubric for all cryptocurrencies) was no different than gambling in Las Vegas, and that investors should be prepared to lose every penny of their speculation. After all, Bill Miller, the superstar money manager who managed to outperform the S&P 500 for 15 years in a row ending in 2005 and later made a fortune investing in 2012 and 2014 in Bitcoin, was quoted in 2017 as saying, “There is a nontrivial chance that Bitcoin goes to zero.”

Robert H. Bradley

Chairman

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