The next evolution of Money
The rise of Bitcoin, a digital asset designed to operate as a medium of exchange using cryptographic technology, has led to an entirely new asset class in which a scarcity of supply is fixed to 21 million. As it’s defined by mathematical features, it cannot be devalued like fiat currency.
Bitcoin and many subsequent blockchain technologies using cryptographic technology and economic incentives have led to the rise of global, state-free (non-sovereign) money. We believe the permissionless and programmable nature of these assets will be the next step in the evolution of money. Development in money is not uncommon in a historical sense — we have seen it evolve from barter to gold to fiat, for example. Now it’s changing again.
Unprecedented global monetary policy, historically depressed low yields, the massive overhang of global debt to gross domestic product (GDP), inflation concerns, and innovative blockchain technology have accelerated the adoption of a new form of money. We believe the breadth and use cases of these new forms of money represents a significantly larger addressable market than gold ($11 trillion) and the total US money supply ($20.3 trillion), which is still underappreciated by the market.