Markets
Tuur Demeester believes bond bear market could reshape traditional portfolio management
In a recent interview with CryptoSlate at BTC Prague 2024, Tower Demeestera renowned Bitcoin research analyst at Adamant Research, shared his journey into the world of Bitcoin and provided insightful perspectives on the current state and future of digital asset adoption.
Shoes for Satoshi
Demeester’s path to Bitcoin began in an unconventional way. Before becoming an analyst, he worked at various odd jobs, including selling shoes and building websites. His interest in the Austrian economy and the trade cycle eventually led him to global macroanalysis.
In 2011, a publisher recognized his talent and offered him a position as author of a financial newsletter. It was through this role that Demeester discovered Bitcoin and began integrating it into his analyses.
In 2013, he committed to Bitcoin full-time and has remained an independent analyst ever since.
Distinguish Bitcoin from Altcoins
From the beginning, Demeester was able to distinguish Bitcoin from other digital assets. He emphasized the importance of understanding system design and architecture, something many altcoins lack.
Projects like Dogecoin, launched as a joke and poorly maintained, illustrate the flaws of many altcoins. On the other hand, Bitcoin’s rigorous maintenance and robust protocol have given it a lasting advantage.
“It really helped me to talk to a lot of engineers who were passionate about systems design and architecture. They saw the lack of rigor in many altcoin projects, like Dogecoin, which was started as a joke and then no one maintained it.
The year of mass adoption
Looking to 2024, Demeester predicts a big year for Bitcoin adoption, primarily driven by the approval of Bitcoin ETF. He believes this will provide the world’s banked population with easy access to Bitcoin, potentially allowing institutions to include Bitcoin on their balance sheets.
While recognizing the need for financial advisors to educate themselves, Demeester sees this as an incredible milestone for Bitcoin.
“The approval of these Bitcoin ETFs gives the entire banking world instant access to the Bitcoin space. This means that any institution can now list Bitcoin on their balance sheet, marking an incredible step towards mass adoption.
Comparison of international markets
When discussing the performance of Bitcoin ETFs in other countries like Canada, Europe and Australia, Demeester highlighted the unique position of the United States as a financial powerhouse.
The combination of curated financial products, a robust application system, and significant liquidity creates a virtuous cycle that draws global attention to U.S.-based financial products. This stands in stark contrast to other regions where similar products have struggled to gain a foothold.
Challenges in the UK and Europe
CryptoSlate analyst James van Straten has expressed disappointment with the UK’s Financial Conduct Authority (FCA) for not allowing retail access to Bitcoin ETFs. He suggested that the UK’s reluctance stemmed from a preference for keeping money in the economy through traditional financial products.
This restriction forces UK investors to look for alternative methods, such as speculating on Bitcoin miners or companies like MicroStrategy.
Political implications
On the political side, Demeester has observed the evolving stance of major US political figures towards Bitcoin. He noted that that of Donald Trump An unexpected endorsement of Bitcoin could significantly influence the next presidential election, turning it into a “Bitcoin election.”
In contrast, Democrats appear to be catching up, with Gary Gensler, a key figure, remaining reluctant to endorse Bitcoin.
Ethereum vs. Bitcoin
Comparing Ethereum to Bitcoin, Demeester highlighted Ethereum’s underperformance over cycles and its inconsistent monetary policy.
He argued that Ethereum’s frequent hard forks and policy changes undermine its reliability as a store of value. On the other hand, Bitcoin’s consistent and predictable monetary policy strengthens its appeal.
Market dynamics and economic trends
Demeester also discussed broader economic trends, including the current bond bear market, which is reshaping traditional portfolio management theories.
He speculated that possible global liquidity crises could have a temporary impact on Bitcoin, although he remains optimistic about its long-term prospects.
The Future of Bitcoin Adoption
Finally, Demeester predicted a significant wave of Bitcoin adoption by public companies. He believes that as companies seek to reevaluate and manage their price-to-earnings ratios, the adoption of Bitcoin strategies will become increasingly common. He argued that this trend would further drive mass adoption of Bitcoin.
In conclusion, Tuur Demeester’s insights paint a compelling picture of Bitcoin’s journey from a niche investment to a mainstream financial asset. With the approval of Bitcoin ETFs and growing institutional interest, 2024 is shaping up to be a pivotal year for Bitcoin adoption.