Chris Burniske is blockchain products lead at ARK Invest, an investment manager focused on disruptive innovation. Adam White is vice president and general manager at Coinbase, where he oversees its exchange service GDAX.
In this CoinDesk 2016 in Review special feature, Burniske and White discuss their recently published white paper, “Bitcoin, a New Asset Class“, unpacking what they see as the tech’s investment potential.
While much of the traditional financial world was focused on “blockchain” in 2016, few gave bitcoin as much attention.
When brought up, bitcoin was referenced in the context of macroeconomic dislocations like the depreciation of the Chinese yuan, India’s banknote ban, or Trump’s surprise election win. While these events often provided great examples of its use as a “disaster hedge” in the face of capital market turmoil, we believe the bigger story of bitcoin’s evolution as a unique asset class was left mostly untouched.
Recently, however, we have witnessed institutional investors awaking to bitcoin’s maturation and long-term value proposition in the context of Modern Portfolio Theory (MPT).
MPT emphasizes that investors should not consider single investments in isolation, but rather in