DAiM Issue 61

Bitcoin is based on energy: you can issue fake fiat currency, and every government in history has done so, but it is impossible to fake energy.
- Elon Musk

1. Experience Changes Perspective

2. Bitcoin Adoption Continues to Mature

1. Experience Changes Perspective - One of the more interesting observations we’ve made over the years is that clients rarely become more anxious after experiencing multiple Bitcoin market cycles. In fact, the opposite often happens. While the volatility never disappears, it becomes familiar. Investors who have lived through previous corrections recognize that sharp price swings are a characteristic of the asset rather than a sign that something is fundamentally broken.

   That doesn’t mean every decline is easy to endure. A 20%, 30%, or even 50% correction can be uncomfortable regardless of how long you’ve owned Bitcoin. The difference is that experienced investors tend to ask a different question. Instead of wondering, “Should I sell?” they ask, “Has anything fundamentally changed?” More often than not, the answer depends less on price action and more on whether the long-term investment thesis remains intact.

   

   Beyond simply maintaining perspective, there is a more proactive shift available. When volatility triggers the urge to sell or paralysis, reframing the dip as an opportunity can provide a powerful antidote. Taking action such as adding to a position often replaces the feeling of helplessness with the tangible satisfaction of lowering your average cost. The best time to start or scale an investment is often precisely when sentiment is most fearful, as you are purchasing into the long-term potential at a discount. By choosing to act, you transform a period of stress into a disciplined step toward your financial goals.

   This shift in perspective is one of the most valuable benefits of investing through multiple market cycles. Conviction is rarely built by reading another article or listening to another podcast. It is earned by experiencing periods of uncertainty, remaining disciplined, and seeing that markets can recover long before investor sentiment does. Each cycle reinforces the understanding that volatility is not an exception in Bitcoin, it is part of the investment journey. While no one can predict where the next correction or rally will begin, history suggests that investors who stay focused on long-term fundamentals rather than short-term price movements are often better positioned to benefit from Bitcoin’s long-term growth.

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2. Bitcoin Adoption Continues to Mature - One of the most common misconceptions about Bitcoin is that its owners fit a single profile. The latest research from the Pew Research Center suggests otherwise. Today, nearly one in five U.S. adults report having invested in or used cryptocurrency. While that figure has remained relatively stable over the past several years, the demographics of crypto users continue to evolve.

   The largest differences remain age, gender, and income. Younger adults are still more likely to own crypto than older generations, and higher-income households continue to adopt digital assets at greater rates. However, one notable change in this year’s survey is that cryptocurrency ownership has become more politically diverse, with Republicans now reporting higher usage than Democrats for the first time since Pew began tracking the data.

   Perhaps the most important takeaway isn’t which group owns more Bitcoin today, but that digital assets are no longer confined to a niche audience. Early adoption was largely driven by technology enthusiasts and libertarian-minded investors. Today, Bitcoin ownership spans a much broader cross-section of Americans with different backgrounds, professions, and investment goals. As regulation becomes clearer and financial institutions continue integrating digital assets into traditional investment platforms, we expect this trend toward broader adoption to continue.

   Bitcoin’s long-term investment thesis has never depended on everyone owning it overnight. Instead, adoption has occurred gradually, one market cycle at a time. Each cycle introduces a new group of investors who move from curiosity to conviction, reinforcing the idea that Bitcoin is a highly recognized asset class alongside stocks, bonds, and real estate.

   When comparing Bitcoin to a traditional investment like Gold, the current recommended allocation by typical financial advisors is depicted in the following table.

   

   We think the next phase of Bitcoin’s price appreciation will be characterized by higher target percentages, expanding capital sourcing, and accelerating advisor acceptance. Because only a fraction of traditional wealth managers currently allocate to the space, the compounding effect of new advisors entering the market alongside rising allocation targets will create a massive demand shock. Given the structural mechanics of a fixed-supply asset, each marginal increase in allocation will drive a multiplicative expansion in Bitcoin’s market cap.

1. Model Portfolio: Our meticulously managed portfolio has consistently outperformed the simple strategy of buying and holding bitcoin alone by more than 324% since inception on 5/31/2018.

2. Wealth Management: As a licensed Registered Investment Advisor (RIA), we cater to clients with diverse financial needs, including Trust accounts, brokerage accounts, and IRAs. Our services encompass comprehensive tax strategies and audits to optimize your financial outcomes.

3. Tailored Solutions for Various Investors:

   • Individual Professionals: Busy individuals like doctors who lack the time to stay updated on market trends.

   • Altcoin Exposure in Retirement: Investors seeking exposure to alternative coins within their retirement accounts.

   • Intergenerational Wealth Planning: Large families aiming to create and manage intergenerational wealth, including gifting in bitcoin across multiple generations.

   • Simplified Management: Investors overwhelmed by the complexities of managing multiple wallets and decentralized exchanges (DEXes), finding it challenging to track or rebalance their assets promptly.

   • Bitcoin Options Trading: Investors looking to manage risk or generate additional yield through advanced strategies like bitcoin covered calls and zero-cost collars.

   • Bitcoin Lending: Investors seeking opportunities to lend their bitcoin and earn interest while retaining ownership of their assets.

4. Enhanced Support and Communication: We understand the frustrations of navigating communication with crypto exchanges. At DAiM, we provide easy access to expert guidance, ensuring seamless communication for our clients.

Curious to Learn More About Investing with DAiM? Contact us at hq@daim.io