The Bitcoin Consulting Company
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The 20’s, an era of Bitcoin for businesses.
While the previous era was characterized by retail investors getting into Bitcoin, the next decade will have a largely different audience.
Looking at the search interest on Google, even with the price tripling since the bottom of the market, there isn’t that much activity. The activity, however, is simply elsewhere: the financial market.
Bitcoin ETF approval
After the approval of the spot Bitcoin ETF, it signaled a starting point for institutional capital to take this nascent asset class seriously. On a more pragmatic note, it also represented the first time that a lot of capital could be invested in the Bitcoin network. A decade of pent-up capital waiting behind walled gardens is finally getting the chance to get exposure to the best asset the world has ever seen.
Hedge funds, pensions and other investors allocating 1% to Bitcoin is exciting – but it’s nowhere near as thrilling as the next wave of businesses that will put Bitcoin on their balance sheet. Leaving the old world behind, the businesses on a Bitcoin standard will outcompete all others. The reason? Simple economics.
Our current financial system is broken. Like a leaky bucket, it’s objectively, mathematically, and engineering-wise a flawed system. Organisms operating in flawed systems become a product of their environment.
Bitcoin represents the polar opposite: a thermodynamically sound, open, permissionless system, that respects the laws of physics. Due to its superior monetary and economic properties, Bitcoin is a superior system, which produces superior results.
Organisms following their instincts and self-interest will without knowing it benefit and strengthen the whole ecosystem, all with no altruism.
Billionaire and owner of Stoneridge, Ross L. Stevens, said it eloquently:
‘‘It would be impossible to overstate the corporate advantages of being on the Bitcoin Standard. Since 2017, we’ve doubled our franchises to ten, more than 10x’d our trading profits, and delivered 25% annualized ROE for our shareholders. Our firm compensation, rent, and total expenses are up 89%, 119%, and 69%, respectively, in fiat, and down 36%, 26%, and 43%, respectively, in bitcoin. The more fiat we make, the more bitcoin I buy. You cannot print bitcoin.’’ — Ross L. Stevens
Looking at two identical businesses or organizations, which one will survive in a harsh competitive environment?
- The one that uses an inflationary currency resulting in ever-increasing prices (higher expenses)
- The one that uses superior monetary technology, resulting in ever-increasing purchasing power, and therefore lower expenses
FASBY Accounting rules open the floodgates
One reason why organizations have struggled to adopt Bitcoin in the past is because there were no clear accounting rules.
Being recognized as an intangible asset, fair value accounting rules did not apply. This means that you could only recognize a loss on your Bitcoin position – not a gain. Not ideal.
This all changed in 2024 when FASBY announced that they are bringing fair value accounting to Bitcoin, beginning December 2024 (companies can opt-in earlier if they wish).
Headwinds
With fair value accounting rules and a green light from Wall Street and the SEC, Bitcoin is poised to become the primary treasury reserve asset of the digital economy.
Sovreign, The Bitcoin Consulting Company’s sole purpose is to help businesses adopt Bitcoin, and foster development through education, research, and advisory services.
Being entrenched in uncertainty, bad actors, missing guide rails, etc, perhaps the most important qualities of an adviser in the Bitcoin industry, are honesty, openness, and an aversion to affinity scams.
That's why Sovreign is a Bitcoin-only company. It ensures that we won't betray you for the latest trend, or sellout to the next Sam Bankman Fried. We will never talk about any other cryptocurrency.
In the words of the legendary investor Michael Saylor himself:
‘‘There is no second best’’
