Course:
What is Crypto
Imagine waking up to the realization that the world is slowly embracing a new financial frontier — one where traditional assets are facing a growing competition from a digital phenomenon. Bitcoin, once relegated to the sidelines of finance, is now positioned to take center stage, and it’s all thanks to evolving regulations and increasing institutional interest.
In this lesson, we’ll explore how the impending regulatory clarity post-elections might catalyze a surge in Bitcoin adoption among traditional investors. Michael Saylor provides keen insights on several key facets, including the potential for Bitcoin to replace conventional assets in investment portfolios, the regulatory landscape’s interplay with institutional investment, and how these dynamics could unfold in the broader financial ecosystem.
By the end of this lesson, you’ll walk away with:
Michael Saylor articulates a transformative upcoming landscape for Bitcoin as November 5th approaches. The predicted increase in regulatory clarity and consistency could become a pivotal moment for Bitcoin, urging institutional investors to reconsider their asset allocation strategies. Currently, “99.9% of the money in the world” is held outside Bitcoin, which represents a significant opportunity for growth.
One striking assertion made by Saylor is the notion that regulatory frameworks could act as “a very clear buy signal to traditional investors.” As traditional money, notoriously cautious and tied to the security of established portfolios, begins to recognize Bitcoin’s legitimacy, the demand for it will naturally escalate. This transition is critical; regulatory acknowledgment can help shift public perception from viewing Bitcoin as speculative asset to a serious contender in modern finance.
Saylor’s insights highlight four major strengths in Bitcoin’s position as a viable investment.
Recognition as an Asset Class: The continued endorsements from influential financial managers and entities signal Bitcoin’s shift into mainstream finance. Historically, significant changes in asset class recognition have led to substantial investments. The approval of spot ETFs allows traditional finance institutions to hold Bitcoin securely and compliantly, fostering greater acceptance.
Performance Metrics: With Bitcoin witnessing a 48% increase in the past 48 months compared to the S&P’s modest gains, Saylor underscores its potential performance as a critical differentiator for conservative investors seeking higher returns.
Demand-Supply Dynamics: The mechanics of Bitcoin’s supply finite nature — with only about 450 Bitcoin available for natural selling each day — coupled with vast inflows from institutional investors, creates a scenario ripe for price appreciation. Should just a small percentage of hundreds of trillions of dollars flow into Bitcoin, the impact would be profound.
Comparison to Traditional Assets: Saylor passionately posits Bitcoin as the “font of eternal youth for investors,” emphasizing its role as a true alternative investment. When juxtaposed against traditional assets like real estate — which many investors are already aware of — Bitcoin’s unique positioning as uncorrelated digital capital elevates its attractiveness when seeking diversification.
These points illustrate a strong foundation for Bitcoin’s future in the financial landscape, legitimizing its role as a transformative asset class.
Bitcoin’s evolution cannot be fully appreciated without considering its relationship to the wider cryptocurrency and blockchain ecosystem. As the institutional interest in Bitcoin grows, one must wonder how this might propel the adoption of other cryptocurrencies and decentralized technologies.
Saylor’s emphasis on Bitcoin as an “uncorrelated asset” challenges the bloom of altcoins, many of which may struggle to establish legitimacy or durability as cryptocurrencies mature. However, a robust regulatory framework could foster a space where not only Bitcoin but also innovative projects could thrive — leading to an enriched crypto landscape.
Central to this is Decentralized Finance (DeFi), which seeks to democratize and broaden access to financial services. Regulatory clarity might lay the groundwork for DeFi solutions to offer transparency, compliance, and convenience, thus drawing more traditional investors into the blockchain world. Essentially, regulatory developments in Bitcoin might create a ripple effect across DeFi, generating an ecosystem ripe for innovation and investment, while also addressing concerns over the volatility seen with meme coins and lesser-known altcoins.
Considering the implications of Saylor’s predictions, Bitcoin emerges as a harbinger of a much larger narrative in the world of finance and technology. If regulatory frameworks cultivate a safe haven for Bitcoin, it holds the potential to revolutionize investment strategies. The blending of fiat and digital assets could reshape how value is ascribed and transferred in the market.
For society, the broad acceptance of Bitcoin and similar digital assets may lead to an overall shift in how investments are perceived and managed. Moreover, as we approach the seamless integration of CBDCs and cryptocurrency, a collaborative landscape may surface, bolstering economic resiliency by mirroring the adaptability of currencies with radically different properties.
As emerging technologies continue to evolve, we can predict that these developments may lead to increasingly sophisticated financial products, offering accessible opportunities that cater to different investment preferences and risk appetites.
Reflecting on Michael Saylor’s assertions, it is clear that the tides are turning for Bitcoin and the cryptocurrency market at large. My own experiences in the investment landscape lead me to agree that the shift towards regulatory clarity not only legitimizes Bitcoin further but may also unlock greater financial opportunities for both institutions and individual investors.
As market participants become more open to diversifying their portfolios, the potential of Bitcoin as a long-term wealth storage solution may finally be embraced. The fascinating interplay of traditional finance with innovative digital assets invites a wave of change I find not only necessary but exhilarating.
In this lesson, we unraveled the multifaceted opportunities brought forward by regulatory clarity surrounding Bitcoin, highlighting its potential as a cornerstone in modern investment portfolios. With traditional institutions gradually acknowledging Bitcoin’s value, its path to normalization becomes clearer.
The integration of cryptocurrencies into mainstream finance promises a transformative potential that could redefine our economic interactions. As we continue to explore these evolving narratives, remember the profound implications these discussions have for both personal finance and the worldwide landscape as a whole.
In this lesson, we’ll delve into the emerging landscape of Bitcoin and its role in the evolving world of finance. The conversation led by Michael Saylor highlights the critical intersections of regulation, institutional acceptance, and investment strategies that underpin Bitcoin’s ascent. As we explore these themes, we’ll draw parallels with traditional financial concepts, offering insights into why understanding Bitcoin is essential for anyone navigating the finance world today, especially in the context of the Crypto Is FIRE (CFIRE) training plan.
Regulatory Clarity
Definition: Regulatory clarity refers to the clear and consistent framework established by governments around the trading and management of digital assets.
Traditional Finance: In traditional finance, regulatory clarity provides a foundation for investor confidence and market participation.
Crypto Relevance: In the crypto domain, regulatory clarity indicates legitimate recognition, boosting institutional investment.
Institutional Adoption
Definition: Institutional adoption is when large financial institutions begin to invest in or support an asset class, thereby legitimizing it.
Traditional Finance: The embrace of investment vehicles like ETFs by institutions is a hallmark of mainstream acceptance.
Crypto Relevance: Bitcoin is increasingly acknowledged as a unique asset class among institutional investors, which transforms it into a viable alternative investment.
Asset Correlation
Definition: Asset correlation measures how asset prices move in relation to one another.
Traditional Finance: Portfolio management often relies on balancing correlated and uncorrelated assets to mitigate risk.
Crypto Relevance: Bitcoin emerging as an uncorrelated asset offers investors a hedge against traditional market swings.
Digital Capital
Definition: Digital capital refers to the economic value derived from the ownership of digital assets.
Traditional Finance: In traditional terms, capital can manifest in investments, real estate, or commodities like gold.
Crypto Relevance: Bitcoin is increasingly seen as a form of digital capital, with potential to replace traditional assets in portfolios.
Portfolio Diversification
Definition: Portfolio diversification involves spreading investments across various asset classes to minimize risk.
Traditional Finance: A typical strategy is a 60-40 bond-stock portfolio.
Crypto Relevance: With Bitcoin’s performance outpacing many traditional assets, it provides an appealing diversification strategy.
Liquidity
Definition: Liquidity is the ease with which an asset can be converted to cash without affecting its market price.
Traditional Finance: Liquidity is crucial for market stability and investor confidence.
Crypto Relevance: Enhanced liquidity in Bitcoin through regulatory structures and institutional interest suggests a maturing market.
Explanation: The basic principle is that as regulations become more defined, both individual and institutional investors feel more confident in allocating funds to Bitcoin. The push towards acknowledging Bitcoin as a legitimate asset can kickstart large-scale investments, shifting the asset from the periphery to the core of financial markets.
Explanation: Institutional acceptance is a game changer. When firms like BlackRock label Bitcoin as a unique diversifier, it empowers investors to see value in it beyond mere speculation. The endorsement from established financial institutions leads to broader acceptance of Bitcoin as part of a diversified portfolio.
Explanation: Since Bitcoin tends not to move in tandem with stock and bond markets, its inclusion in a portfolio can stabilize overall performance, especially during volatile periods for traditional assets. This characteristic makes Bitcoin stand out as a desirable asset for mitigating risks.
Explanation: Understanding Bitcoin as a form of digital capital is crucial. Just as individuals invest in real estate or stocks, recognizing Bitcoin in the same light will facilitate its wider acceptance and utilization as an investment vehicle, drawing in more traditional investors.
The recognition of Bitcoin by major financial institutions reflects a significant shift in the asset’s status. This parallels how mutual funds and ETFs opened up stock investments to a broader audience, which resonates with the way traders have embraced newer cryptocurrencies and tokenized assets—suggesting a future where Bitcoin’s institutional acceptance encourages further innovations in the broader crypto space.
Visual aids like performance charts of Bitcoin versus stock indices, such as the S&P 500, could illustrate its uncorrelated nature effectively. These charts could be adapted to show historical trends in market volatility where Bitcoin demonstrated resilience or outperformance, further emphasizing its case as a diversifier.
Hypothetical Example: Imagine a traditional investor holding a 60-40 portfolio. If they allocate 10% of their bond holdings into Bitcoin, they might find that as traditional markets decline during economic unrest, their Bitcoin investment remains stable or even increases, showcasing a buffer against losses.
Historically, Bitcoin has gone through phases of speculation, but the current narrative suggests a maturation in its acceptance. As institutional interest grows, Bitcoin’s role in asset allocation is evolving, with examples of companies like MicroStrategy integrating it into their balance sheets alongside traditional assets.
The relationship between increased regulatory clarity and the influx of institutional capital exemplifies a cycle where each factor reinforces the other—more regulations inspire confidence, prompting more capital flow, which in turn calls for further regulatory measures to accommodate increasing demand.
Some apprehensions about Bitcoin include concerns surrounding government regulation and the potential for centralization. However, Blockchain technology offers solutions for transparency and control that could outlast heavy scrutiny, addressing fears of being regulated out of existence while still attracting traditional investments for growth.
As you continue your journey into the world of cryptocurrencies through the Crypto Is FIRE (CFIRE) training program, this lesson lays the groundwork for understanding the significance of Bitcoin in modern finance. Get ready to dive deeper into the interconnectedness of finance and technology in upcoming lessons.
Join me for the next lesson as we further explore the dynamic world of cryptocurrencies and their transformative potential in reshaping finance. Let’s keep the momentum going!
In the tumultuous world of finance, clarity can often feel like a distant dream—especially after pivotal moments like elections. However, Cathie Wood presents a reassuring perspective that feels almost nostalgic, recalling a time when bold innovation flourished post-Reagan. Just as we navigated through those waters with skepticism and hope, you are invited to explore the potential seismic shifts in economics and technology, as elucidated by Wood.
In this lesson, you will uncover essential insights on the dynamics between government policy and market innovation, explore the potential revival of active equity investing, and understand how emerging technologies like blockchain and AI converge to shape the future.
By the end of this article, you will be able to:
Cathie Wood’s analysis involves a deep exploration into the intersection between government policy and investment dynamics. Her central thesis asserts that President Trump’s leadership, much akin to President Ronald Reagan’s era, could lead to an economic and innovative renaissance. Wood outlines several pivotal themes:
Historical Parallels – Drawing connections between past and present, she illustrates how the 80s and 90s marked a golden age of investment after addressing recession and policy changes.
Tax Cuts and Productivity – She argues that lower tax rates will provide a catalyst for economic growth, boosting investment and attracting capital.
Interest Rates and Inflation – Wood believes that the anticipated reduction in interest rates, alongside productivity growth driven by technology, may result in lower-than-expected inflation—a scenario favorable for innovation-driven strategies.
The Role of Regulation – A significant component of her message is the potential for regulatory transformations under Trump’s administration, including how deregulation may spur greater innovation and efficiency.
Focus on Transformative Technologies – She emphasizes the convergence of technologies such as AI, blockchain, and robotics, which could redefine productivity in various sectors, particularly in healthcare and digital assets.
1. Historical Context Matters
Drawing from her experiences starting in the 80s, Wood believes the current political environment mirrors that earlier period, where controversy gave way to growth. As historical trends suggest, economic rejuvenation can emerge from even the most unstable political climates. Observing how past decisions led to thriving market conditions provides a reliable perspective for investors today.
2. Tax Policies as Growth Catalysts
Wood emphasizes the importance of tax cuts, akin to the Reagan era, positing they can invigorate the economy. This belief aligns with classical economic theories that lower taxation increases disposable income, further enhancing demand. As you consider investment strategies, evaluating the connection between tax policy decisions and market performance could yield benefits.
3. Interest Rates and Dynamic Inflation
Wood’s assertion that inflation will remain subdued hinges on productivity increases, driven by technology. It’s critical to consider how advancements in fields like AI and blockchain could contribute not only to efficiency but also to cost reduction. With most commodities priced in dollars, a stronger currency can exert downward pressure on prices, reinforcing the rationale for innovation-led growth.
4. The Necessity of Innovation-Friendly Regulations
The regulatory environment plays a pivotal role in shaping investment opportunities. Wood’s insights regarding anticipated shifts in regulatory frameworks highlight the importance of a balanced approach to innovation. By encouraging rather than stifling, pro-growth policies could create a fertile ground for entrepreneurship.
Potential Criticisms:
While Wood presents a compelling narrative, one must also be aware of the inherent risks in reliance on political promises, including the uncertainty of actual implementation. Additionally, the potential for oversight in regulatory cutbacks may lead to unchecked practices among corporations. A thorough examination of both benefits and drawbacks will enhance your investment decisions.
Within the broader economic discussion, the evolving world of cryptocurrencies and blockchain technology marks a notable trend that aligns with Wood’s vision. The digital asset movement, once scarce under stringent regulations, now finds renewed vigor under potential regulatory changes.
Revitalizing Digital Assets
Wood’s emphasis on digital assets, particularly Bitcoin, as a key component of national strategy resonates deeply within the crypto community, presenting an image of potential integration into the mainstream economy.
Smart Contracts and Efficiency
As automation through AI converges with blockchain, revolutionary applications emerge, allowing for efficiency in sectors like healthcare, illustrating how transformative technologies drive synergy across industries.
DeFi and Accessibility
Additionally, Decentralized Finance (DeFi) presents a world of opportunities. These innovations could redefine financial systems, enabling more egalitarian access and participation. As you explore these ideas, consider how the principles of regulation and innovation will affect the pace and scale of growth within the blockchain ecosystem.
As an expert with a unique view on the current landscape, I think Wood’s insights present not just optimism, but also a cautionary tale about the role of leadership in shaping economic paradigms. Having witnessed technological transitions firsthand, I am convinced that we are at a critical juncture where embracing cutting-edge innovation could yield the greatest rewards.
With emerging technologies becoming increasingly practical for everyday operations, it becomes crucial for you to adapt—whether as an investor, a business leader, or an avid learner. Aligning with transformative movements and staying ahead of regulatory shifts will ultimately influence your professional trajectory.
In sum, Cathie Wood’s perspectives provide robust insights into the potential of an evolving investment landscape—a realm ripe for innovation and growth. As you reflect on these themes, keep in mind the historical patterns that inform current market behavior and the significance of potential regulatory reforms.
With the transformative power of technologies like blockchain on the rise, you stand at the forefront of an exciting revolution. Embracing these opportunities could not only redefine industries but also facilitate a brighter economic future for all.
In recent discussions, insights into post-election investment landscapes have emerged, reminiscent of shifts seen during significant historical periods, specifically the Reagan administration in the 1980s. As economic indicators evolve, the intersection of traditional finance and innovative technologies, such as cryptocurrencies, becomes vital. This lesson aims to unravel key concepts of economic growth, investment strategies, and emerging technologies that promise to reshape the future, while giving special attention to how these dynamics could influence the crypto sphere.
Inflation
Interest Rates
Tax Cuts
Regulation
Productivity Growth
Government Spending
Autonomous Mobility
Understanding these concepts is crucial because they form the foundation of how markets function—both traditional and crypto. A firm grasp allows you to navigate economic tides confidently and identify when to pivot your investments.
Explanation: Just as the Reagan administration experienced high inflation and interest rates, today’s economic milieu reflects similar challenges. The handling of these will determine future market performance, especially regarding innovation in investment strategies.
Explanation: The convergence of groundbreaking technologies can fundamentally alter industries. By fostering a supportive regulatory environment, the pace of innovation can accelerate dramatically, reshaping the landscape for investors.
Explanation: A shift in regulatory attitudes has the potential to catalyze revitalization across various sectors. The emergence of blockchain and digital asset regulations will ultimately influence their acceptance in mainstream finance.
Explanation: Cryptocurrencies present a new paradigm in financial transactions and asset ownership. Their development should be monitored closely as traditional structures adapt to accommodate digital innovation.
Explanation: Strategies that are tailored to address economic shifts will allow you to seize opportunities both in traditional markets and the crypto world, leading to wealth accumulation over time.
Explanation: As the landscape continues to evolve, being proactive about education can give you a competitive edge in both traditional investing and cryptocurrency.
Although specific charts and graphs weren’t mentioned, consider visuals representing the correlation between interest rate changes and crypto investments. Infographics that illustrate productivity growth juxtaposed against crypto adoption could provide compelling insights.
Historically, transformative economic environments have bred innovation, as evidenced by the Reagan administration. Similarly, the crypto space is now leaning at a pivotal moment, riding the wave of necessary deregulation and innovation-led growth. Companies increasingly invest in blockchain to streamline processes, reflecting a broader movement across industries to integrate new technologies.
Changes in interest rates can trigger various reactions in both traditional markets and the crypto space. For instance, an increase in rates often leads to decreased consumer spending, affecting business growth. Conversely, a proactive embrace of digital assets can generate new dimensions in revenue models that counteract these effects, creating opportunities for significant profit.
By applying these insights strategically, you can better position yourself within both the traditional financial realm and the blossoming world of cryptocurrencies.
Finally, as you embark on this journey of learning and discovery, remember the excitement of new innovations that can change the world as we know it. By understanding both traditional finance and the burgeoning sector of cryptocurrencies, you are poised to seize the opportunities that lie ahead.
Let’s keep that momentum going and look forward to the next lesson in the Crypto is FIRE (CFIRE) training program. It promises to open new avenues for your financial exploration and education!
Cathie Wood’s Post-Election Insights
Transcript:
Greetings, everyone. Well, we have more clarity now in terms of the investment landscape after the election. And I wanted to talk a little bit about déjà vu for me. I started my career really in the early 80s.
And at the time, we had the Reagan administration and a lot of controversy about everything, much of which we’re hearing today, the same kinds of controversy. So I wanted to take you a little bit through the macros, what the Trump administration says it wants versus what might likely happen, given that backdrop, as well as how this clarity is going to impact the world of innovation, the world of transformative innovation.
And we believe the world is transforming in miraculous ways. So we want to take you through some of that and how this administration, its policies, are probably going to accelerate these changes. So let’s talk about macros first. In the early days of the Reagan administration, there were back-to-back recessions and interest rates hit 15 percent.
And that was a very difficult environment for investing. Well, President Trump is coming into office when that part of the equivalent in the Reagan administration has been done. And I remember after that, the 80s and 90s were the golden age of active equity investing. And I think we’re going back there.
First of all, in terms of the controversy, a deficit back then, after back-to-back recessions, 5.5 percent. The bond market was apoplectic about that. Investors were as well. And what they didn’t understand is that the Reagan policies of tax cuts, along with lower interest rates caused by Volcker, moving from double-digit interest rates to something much lower, that those were going to be very positive for economic growth, and that we were going to grow our way out of the deficit.
That growth out of the deficit started in the 80s with the Reagan administration and finished in the 90s with the Reagan administration and finished in the 90s with the Clinton administration, taking us into a surplus. We think we’re going to experience somewhat of the same thing this time around. The tax cuts, we believe, are critically important, especially if Trump makes good on his tariff promise.
Now, I’m not a big fan of tariffs myself, but if we’re going to pair tariffs not on our free trade partners but on those countries that really are not giving American goods and services a level playing field, but we counter them at home with lower tax rates for consumers and businesses, that’s a tradeoff.
That’s a good tradeoff. And so I don’t think the criticism about tariffs is going to play out in terms of 100 percent across the board. That’s not what we’re talking about here. I think President Trump is very pro-growth, and he’s not going to do anything to impede growth in that way. He wants the dollar down. He thinks that will make us more competitive. to do anything to impede growth in that way.
He wants the dollar down. He thinks that will make us more competitive. What I think will happen is the returns on invested capital in the United States relative to those elsewhere in the world, they’re going to increase, and that is going to attract more capital, which will actually boost the dollar.
Now, in terms of interest rates, the dollar going up is anti-inflationary, as is the productivity growth associated with a burst in activity caused by lower tax rates and other incentives for investing. So if inflation is going to surprise on the low side of expectations, that’s going to be very good for innovation-driven strategies.
What happened during the last four years, actually, is the burst of inflation caused by many things, but COVID, supply chain, money growth exploding. Even though the Fed has gotten all of that under control, I think a lot of investors have had trouble believing that it would stay under control. The way inflation will stay under control is productivity growth, and we’re already seeing strong productivity growth thanks to artificial intelligence and other new technologies, as well as actually the dollar firming. Most commodity prices are priced in dollars. Most
commodities are priced in dollars, I should say. And the dollar going up means downward pressure on commodity prices. That’s a very good thing as well. So what will happen to interest rates here? Now, this is a little different from the 80s. Interest rates were so high at the beginning of the 80s, 15%, that really if the Reagan administration got anything right, those interest rates would come down.
And they certainly have. Now, 45 years later, they are high relative to recent history, 5% on the Fed funds rate. And they are restrictive relative to where we see inflation going. So we do believe there will be a downward pressure on interest rates, maybe even more than many investors expect in the near term, because I think a lot of activity is going to be held back by a desire to understand how policies are going to change in the future.
If we believe tax rates are going to come down, we’re probably going to wait. If we’re businesses and consumers. This is classic. It even happened during the Reagan administration when he phased in tax cuts over three years. Most people just waited until the tax rates were at the point he had promised.
So we probably will see some holding back of activity in the next year in anticipation of even lower tax rates. So I think interest rates will be biased to the downside. Thereafter, I think we’re going to see an explosion in productivity growth. That’s what the convergence among the major innovation platforms around which we’ve centered our research. So robotics, energy storage, artificial intelligence, blockchain technology, and multi-omic sequencing in the healthcare space.
Those platforms are converging and we believe are going to unlock explosive productivity growth, explosive GDP growth, and much lower than expected inflation because all of these platforms are deflationary. They’re technologically enabled, and that’s good deflation. As prices fall, units explode, and it’s really important.
The reason we give our research away, it’s important for investors and individuals and businesses to get on the right side of change, because these are transformative technologies. So in terms of government policies, perhaps the most profound thing that’s going to happen in the very near term is a changing of the guard at some of the regulatory agencies, the SEC and the FTC.
The SEC menace to the digital assets movement. We’ve lost a lot of talent to other countries because of Chairman Gensler, and I think that’s going to change. We know it’s going to change. And I think that’s going to change. We know it’s going to change. President Trump because we’re probably going to see Lina Khan at the FTC leave her position.
And, of course, the strong-armed antitrust regulations that Lina Khan has abided by, those are going to go away. Lina Khan has abided by. Those are going to go away. They’ve prevented mergers and acquisitions that we absolutely need. Large companies are looking at these smaller companies innovating and perhaps being very disruptive to their models, and they’ll probably want to get some of that DNA into their companies. I think the regulatory cutbacks are going to be profound.
In his first administration, President Trump said to regulators, you want to put in a new regulation, you have to take away two. I think that he’ll be even stronger on that. And of course, when it comes to government spending, he’s inviting Elon Musk into – or under the tent. Now, the deficit will go down, we think, because of growth, but also we think the inefficiencies in the government are extreme.
And we do believe that Elon Musk’s first principles-based white sheet of paper will figure out ways through attrition in terms of headcount and technology, productivity gains, to really shrink the government as a percent of GDP, getting a lot of the waste out of the government. And of course, every president has promised that.
I think this one will deliver with the help of Elon Musk. We do not believe that Elon’s going to be leaving his companies. We do believe he’ll put in place a process that will be reinforced by some of the people who will be attracted to this goal and want to be a part of helping him carry it out. So there we go.
That’s the macros. In terms of innovation, we think it’s been brewing really for the last 25 years. The seeds for everything we’re seeing today were planted in the years when active management was in full stride, the 20 years that ended in the late 90s, the internet revolution.
And since then, we think that government policies have impeded a lot of innovation, but behind the scenes, the seeds have been flourishing. And now we think the blossoms are out. Innovation is going to thrive now in this new environment. And we think the three biggest – the three biggest opportunities right now associated with the convergence of these technologies are in the autonomous mobility space, so everything – robo-taxi, drones, and so forth, health care, and digital assets.
I’ll just give you a quick one on health care, because many people are short innovation altogether, truly transformative innovation, thinking that, you know that the broad-based indexes have that covered. We don’t think they do, and especially not in healthcare. And we think that a few of the things that the Trump administration, the new Trump administration has been saying, they want to clean up the corruption within healthcare.
And I think what they mean by that is lobbyists have taken over for years and years and years, and they want to break that stronghold and really bring back – this is a quote – the rich tradition of the gold standard, evidence-based science. That’s going to be amazing for what we’re calling the multi-omics revolution.
And in a year where our next generation internet strategy, which covers not only artificial intelligence, but blockchain technology, digital wallets, the fintech revolution, that strategy has outperformed the market this year, a very strong year. And it did so with very little exposure to the concentration in the broad-based indices.
In other words, it’s a differentiated exposure to AI, digital wallets, the fintech revolution. On the other hand, the multi-omics revolution space and strategy has been pummeled in the past year. And I think it is for a couple of reasons, certainly regulatory, no M&A, but also a profound misunderstanding of what innovation is going to bring to the healthcare space. It will be transformed perhaps like no other sector.
It is the most profound application of artificial intelligence that we see out there curing diseases. And I just have to tell you, in learning what the financial markets, how they perceive these companies that are curing disease, this is not about the future. It’s happening now. CRISPR Therapeutics is a company whose drugs have been approved in both the U.S. and the U.K. and Europe, as a matter of fact.
Those three areas curing sickle cell disease and beta thalassemia. And many analysts are not interested in these spaces. Rare diseases, too small. Cures, one and done. There’s no annuity. We need chronic sickness to get these annuity drugs out there to control the symptoms. We’re astonished as we think about the kinds of analysis that is treating this space so badly right now, we think that’s going to change.
We think that’s going to change magnificently in the years ahead. And on the digital asset front, I mentioned that Bitcoin is very much a part of this administration’s plans, including building a strategic reserve. We’re very excited about that.
We think that this is the layer of the internet that the developers in the early 90s did not build in. And we were at risk because of the SEC of losing this next big wave of the internet all around commerce, financial services, digital property rights. And now we think this administration is going to bring that innovation back home where it started and we’re going to ride that wave again.
So we’re pretty excited about what has just happened from an innovation point of view. We think that deregulation is critical and really allowing innovation one of the biggest runs it will ever have in history now that these technologies are ready after 25 years of germinating. We couldn’t be more excited.
We hope you’ll join us on this journey. Read our research. We give it away on arc-invest.com. And whether you’re an investor or a person interested in getting onto the right side of change, a student, or a person thinking about the next wave of your careers, read our research and join us. Join us. This is going to be a very, very exciting revolution.