This is a summary of Tuur Demeester’s Investor Newsletter
If you aren’t familiar with Tuur Demeester, he is probably the only Bitcoin user who presented a conservative estimate for the bitcoin price based on Bitcoin taking over the largest markets of the world. The following information is from Demeester’s 2013 San Jose presentation.
|Market Taken Over By Bitcoin||The New Price of One Bitcoin|
|1% of Hedge Funds||$1,230|
|Argentina leaves fiat for bitcoin||$2,480|
|Gold owners trade 1% of their gold assets for bitcoin||$3,500|
|Bitcoin Volume = 50% of the Black Market Volume||$86,000|
|Bitcoin becomes the new gold||$340,000|
|Bitcoin becomes the world reserve currency||$520,000|
Demeester finishes this dreamy number crunching with recommending that everyone in the world get two or three bitcoins due to the incredible risk/reward ratio.
Two years later, Demeester has followed up his “Why People Should Invest In Bitcoin” presentation with a newsletter that explains how people should invest in Bitcoin.
Here are the highlights of Demeester’s newsletter:
- Bitcoin competes with the $16.7 trillion offshore deposit, $4.5 trillion cash, and $7 trillion gold markets.
- Demeester recommends Trezor for personal bitcoin management and Xapo for 3rd party bitcoin management.
- Invest directly in Bitcoin, which has the largest market share and is protected by a network effect.
- Round out your Bitcoin Investment with the next four top cryptocurrencies (Ripple, Litecoin, Ethereum, Dash).
- Averaging Down is a recommended practice of determining at what lower prices you will buy more bitcoins. It prepares you for a plan of action
when volatility pulls the Bitcoin price down.
- Demeester recommends investing 1%-2% of one’s portfolio as a hedge against the remaining portfolio. There are higher percentage investment recommendations based on life stage and vulnerability to risk.
- Demeester closes with an example of ways to invest $50k. He mentions techniques such as: lump-sum purchases, dollar-cost averaging, averaging down, and altcoin portfolio investing.
You can subscribe to Demeester’s newsletter by signing up here.