The following is a written transcript of our five part video series “Short BTC, Long Bitcoin (BSV)”. The video version can be found on our YouTube channel.
Introduction
Is Bitcoin the future or a bubble ready to pop? Between 2010 and 2017, early speculators made quick fortunes with eye popping 1,000,000x plus returns. In December 2017, bitcoin, trading as BTC, approached $20,000 per coin, achieved a market capitalization of over $320 billion, and became a daily topic of discussion on CNBC and other financial news outlets. Today, as BTC hovers around $8,000, technologists, speculators, and now institutional investors are waiting to see what’s next, many anticipating another, even bigger, bull market as more people become familiar with and invest in the technology.
At Unbounded Capital, we think the bull market isn’t coming for BTC, but that it will come for bitcoin in the form of BSV.
Two Versions of Bitcoin
BSV and BTC are different versions of bitcoin with a shared common history. These competing versions of Bitcoin are called forks. Although each fork originated as bitcoin, they are now operating under slightly different rules, they aim to achieve different visions, and they trade under different ticker symbols.
Most of our fellow investors in the cryptocurrency industry ignore perspectives other than the CNBC narrative. When we realized that BTC is a poor long term investment, it left us searching for an explanation and possible alternatives. This search took years of dedicated research and culminated in a profound rethinking of what bitcoin is, and how it works.
BSV is The Better Bitcoin
Today we are more optimistic than ever in the future of bitcoin, but in the form of Bitcoin Satoshi Vision, often simply called Bitcoin SV and traded as BSV. BSV has vastly superior technical metrics but just a $3 billion market cap, 50 times less than BTC’s. The BSV version of bitcoin is already able to process thousands of times more transactions per second than BTC, with each transaction costing users thousands of times less than if they were to use BTC. Unsurprisingly, this cheaper and more scalable version of bitcoin routinely doubles or triples BTC’s daily transaction volume and is attracting a rapidly growing ecosystem of entrepreneurs and developers seeking to leverage this technology for their businesses. We expect this trend to continue and imagine the true potential of BSV fundamentally reshaping how our global economy functions, and presenting a surge of economic growth akin to the creation of the internet. We expect the major winners of the next decade will be leveraging BSV.
Where did BTC go wrong?
So why is market leading BTC’s performance so inferior to the relatively unknown BSV? Because, the developers at the helm of BTC are prioritizing the creation of a lean version of Bitcoin, a version they imagine can operate outside the reach of governments. This is in stark contrast to BSV. BSV prioritizes efficiency and scale in delivering the initial promise of Bitcoin. Because of these differing goals and a lack of nuance in public discussion, we believe BSV is well positioned with asymmetric upside, and we believe BTC holders should prepare for a sharp fall from the top of the cryptocurrency charts.
In this series, we will summarize our research into these topics, and elaborate on why we think BTC will fail while BSV succeeds.