Category: Cryptocurrency

The digital asset landscape is often framed as a competition between Bitcoin, Ethereum, and a long tail of alternative tokens. This framing is misleading. Bitcoin is not simply the “largest” digital asset by market cap; it is structurally and economically different than every other type of blockchain token. Its core properties—monetary neutrality, governance resistance, and decentralized security—place it in a different category.

Monetary Policy: Only Bitcoin Is Immutable

Every other digital asset has a monetary policy that can be changed by a relatively small group of insiders or large token holders. Ethereum–the second-largest cryptoasset by market cap–provides the clearest example: EIP-1559 shifted ETH from inflationary to deflationary issuance, a fundamental monetary change effectively decided by a small group of participants.

Whether EIP–1559 or any other protocol upgrade is beneficial or not isn’t the issue. The key issue is that the monetary rules of these assets can be rewritten by a close, centralized core of interested parties. That degree of discretion presents material centralization risk and undermines any other cryptoasset’s role as a long-term store of value.

Bitcoin is the singular exception. Its 21 million token supply cap, hard-coded and decaying issuance schedule, and consensus rules are credibly immutable. No committee, foundation, or majority of token-holders can alter Bitcoin’s fundamental rules. This constraint is the cornerstone of Bitcoin’s value proposition.

Proof of Work vs. Proof of Stake: Incentives Matter

Bitcoin’s Proof-of-Work (PoW) model requires the ongoing expenditure of real-world energy to secure the network. Economic rewards are earned by committing resources in real time, and the competitive nature of mining drives decentralization across geographies, operators, and energy sources. Proof-of-Work is fundamentally democratic.

Proof-of-Stake (PoS) networks function differently. Control flows to existing wealth: those who hold the most tokens receive the most staking rewards, compounding their ownership and influence. This dynamic creates structural insider dominance and increases the risk of coordinated policy shifts. PoS systems are efficient in some respects but they are not governance-resistant. They should not be treated as monetary goods. Proof-of-Stake is inherently oligarchic.

The Only Credible PoW Monetary Asset

A handful of other PoW chains exist, but none approach Bitcoin’s security budget, adoption, decentralization, or network effects. Bitcoin is the only non-sovereign digital asset with a multi-trillion-dollar economic footprint and global, institution-grade liquidity.

If a digital asset is to be considered a store of value, it must have neutral governance, predictable rules, and a security model robust enough to resist adversaries over decades. Only Bitcoin meets this standard.

Bitcoin’s difference defines its value

Bitcoin is the only digital asset that functions as a durable, non-sovereign store of value. Many other credible tokens–Ethereum included–are technology platforms with flexible governance and evolving monetary policies. They may be useful, investable, or innovative, but they are not monetary goods. Those PoS blockchains are also the platforms on which many other scams, memes, and shitcoins are built.

Bitcoin stands alone because its rules cannot be changed, its security model rewards ongoing competition rather than entrenched wealth, and its network has achieved escape velocity. As a long-term digital store of value, Bitcoin stands alone.

 

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This information is intended for general educational purposes only and should not be construed as legal or investment advice.

Chasing short-term Bitcoin returns can be risky. Strategic Alpha focuses on long-term wealth preservation, tax efficiency, and generational wealth.

 

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In recent months, global markets have entered a period of significant divergence. U.S. equities, long the bellwether of global investor sentiment, are struggling under the weight of high valuations and policy uncertainty. In contrast, international equities have shown surprising resilience. Meanwhile, Bitcoin is stepping out of its speculative shadow, and private equity is confronting a long-overdue reckoning. These three themes—international outperformance, digital hard assets, and illiquidity risk—are reshaping how we think about asset allocation in the years ahead.

International Outperformance: A Quiet Shift Takes Hold

One of the most underappreciated developments in 2024 has been the strength of international equities. While U.S. indices such as the S&P 500 have dipped into negative territory, markets like the Hang Seng Index in Hong Kong and the DAX in Germany have remained in solid uptrends. These international indices have weathered the volatility with far greater composure than their U.S. counterparts.

This divergence is not just about market momentum. It reflects deeper structural dynamics: a weakening U.S. dollar, more favorable valuations abroad, and a relative lack of exposure to the large-cap tech names that dominate and increasingly weigh on U.S. benchmarks. In this environment, our approach has been to reduce exposure to broad U.S. indices and reallocate incrementally toward international opportunities—particularly in markets with strong trendlines, solid fundamentals, and better risk/reward setups.

Investors tend to overweight their home markets, but global leadership rotates. With many U.S. equities stretched and speculative fervor concentrated in a narrow slice of tech stocks, international diversification isn’t just prudent—it may well be necessary.

Bitcoin: From Toy to Treasury Asset

While the broader market has been under pressure, Bitcoin has quietly made historic gains. The digital currency recently hit an all-time high when measured against equities, signaling a structural shift in how it is perceived.

Bitcoin is no longer just a speculative playground for tech-savvy traders. It is increasingly acting like a digital counterpart to gold: a decentralized, non-sovereign store of value. Amid global monetary uncertainty and rising concerns about fiat debasement, the case for Bitcoin as a strategic asset allocation tool has grown stronger.

Price action confirms this shift. Bitcoin is breaking out not just in dollar terms, but relative to traditional assets like stocks. This breakout from a long base pattern suggests the beginning of a new structural uptrend. It doesn’t mean Bitcoin is without risk—volatility remains high—but the asset is showing signs of maturation. For investors willing to tolerate drawdowns in exchange for asymmetric upside, Bitcoin has become increasingly difficult to ignore.

Private Equity: A Liquidity Reckoning Unfolds

If Bitcoin represents a new frontier, private equity is a cautionary tale. After a decade and a half of exuberant inflows, the private market ecosystem is showing signs of strain. Endowments and large institutions are quietly exploring secondary sales. Discounts are widening. Illiquidity—once sold as a feature—is now looking more like a bug.

The core issue is twofold. First, the promise of an “illiquidity premium” has not materialized for many investors. Returns have lagged, and recent IPOs of private equity-backed companies have underwhelmed. Second, in an environment of rising uncertainty and shifting priorities, being locked into opaque and inflexible structures is increasingly unattractive.

What we are witnessing is the start of a broader reassessment. Liquidity, once taken for granted, is being revalued. Investors are recognizing the importance of being able to adapt, pivot, and access capital when it matters most. This is especially critical in a world marked by geopolitical shifts, technological disruption, and policy unpredictability.

Our view has been to emphasize a barbell approach: favor public, liquid markets where price discovery and flexibility are real, while reserving private allocations for only the most compelling, early-stage opportunities—where idiosyncratic returns justify the trade-off. The days of blindly allocating to mega-fund buyouts and late-stage private credit are, in our view, numbered.

The Road Ahead: Rethinking Risk and Reward

The investment world is changing. The old playbook—which prioritized U.S. dominance, low volatility, and institutional orthodoxy—is no longer sufficient. Today’s conditions demand new thinking.

International markets are quietly asserting leadership. Bitcoin is maturing into a meaningful strategic asset. And the cracks in the private equity model are becoming too large to ignore.

It’s not about abandoning tradition, but rather updating assumptions. Flexibility, liquidity, and diversification—real diversification—are taking center stage. And for investors willing to step back and reassess, this period of transition offers rare opportunities to get ahead of the next structural cycle.

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If you’re interested in learning more about Bespoke’s approach to private wealth management and how we can help you build a secure financial future, we invite you to reach out to us directly. We’d be happy to set up a confidential consultation at your convenience.

Thank you for considering Bespoke as your partner in wealth management. We look forward to the opportunity to work with you.

This information is intended for general educational purposes only and should not be construed as legal or investment advice.

As digital currencies like Bitcoin gain prominence, attorneys, financial advisors, and trustees must adeptly navigate the complexities of structured planning to manage, protect, and optimize these unconventional assets.

Bespoke’s Co-founder, Matt McClintock, demystifies estate planning for digital assets in this talk with BitDevs.

Here’s what the discussion covered…

The Benefits of Using Creative or Personal Names for Trusts

Using creative or personal names for trusts enhances privacy and security while adding a meaningful touch. By choosing a unique name—like a favorite landmark or character—you obscure your identity, protecting personal details from public records and reducing the risk of identity theft. This approach ensures confidentiality, making it harder for outsiders to connect the trust with your personal affairs. Additionally, a personal name adds significance to the trust, making the estate planning process more engaging and reflective of your values.

Understanding Revocable Living Trusts: Asset Protection and Tax Implications

A revocable living trust doesn’t offer asset protection from creditors or tax benefits. During your lifetime, creditors can access the trust’s assets since you control and can revoke it. Tax-wise, there are no advantages or detriments; assets remain part of your estate for tax purposes, and income or gains are reported on your personal tax return. The main benefit of a revocable living trust is efficient estate management. It helps avoid probate and allows for private, streamlined asset distribution and management in case of incapacity or death, ensuring a smoother transition of your estate.

Revocable Trust Structure: Protecting Assets for Spouse and Children

A revocable trust structure designed to protect assets for both your spouse and children allows your spouse to benefit from and manage the assets without full ownership, safeguarding against misuse. It also ensures that the assets remain in the trust and are available for your children if your spouse passes away first, avoiding disinheritance. Your spouse acts as trustee, balancing control with asset protection. This approach protects assets, supports your spouse, avoids probate, and simplifies transfer, with clear terms and effective family communication being key considerations.

Legal Limits on Trust Provisions

Drafting effective trust provisions requires balancing detailed instructions with legal and practical considerations. Legal limits include public policy restrictions that invalidate provisions based on religion, race, or illegal incentives, and adherence to the rule against perpetuities, which limits how long a trust can last.Practically, granting trustees broad discretion within clear guidelines helps them manage assets flexibly and adapt to unforeseen changes. Avoid overly complex provisions to prevent administrative difficulties and disputes. Collaborate with legal experts to ensure enforceability, communicate your intentions clearly to trustees and beneficiaries, and regularly review and update the trust to reflect evolving needs and circumstances.

Mechanical Transfer vs. Intentional Transfer

The key difference between mechanical and intentional asset transfers lies in the clarity and structure of the transfer process. Mechanical transfers, like handing over a vault combination without further instructions, can lead to uncertainty and unintended consequences. In contrast, intentional transfers involve detailed planning and legal structures, such as trusts, which ensure assets are managed, protected, and distributed according to the original owner’s wishes. Using trusts, clear instructions, and professional advice ensures assets are safeguarded, privacy is maintained, and tax implications are optimized, effectively achieving your estate planning goals.

Mastering Unconventional Asset Management

Structured planning for unconventional assets, like Bitcoin, requires a thoughtful and adaptive approach that integrates security, legal compliance, and asset management. By leveraging creative strategies—such as using personal names for trusts to enhance privacy or crafting intentional asset transfers through detailed estate planning—individuals can protect their assets while ensuring smooth transitions for future generations.

Whether dealing with digital currencies or more traditional assets, Bespoke is committed to help optimize estate planning and safeguarding your legacy.

Stephan Livera Podcast: UHNW Bitcoin Strategies
Matthew McClintock, executive managing director of Bespoke Group joined Stephan Livera on his podcast to chat about Bespoke’s multi-family office and private trust company services for ultra-high net worth US clients. They discuss:

• What level of wealth qualifies for a family office?
• What are the concerns of Bitcoin-affluent families?
• What kind of structures can they use?
• Benefits of these structures
• Trade offs of the approach
• How the Sovereign Individual thesis may play out
• Should UHNW Americans consider staying out of these structures?
• What’s needed from a technology and culture perspective?

Check out the podcast on Apple, Android, or by clicking the link below.

Wealth Actually: Crypto and NFT Estate Planning Update with Matthew McClintock (Part 2)

Matt returned to Frazer Rice’s “Wealth Actually” podcast to expand on their 2020 discussion surrounding inter-generational wealth transfer issues for individuals with large cryptocurrency holdings. The last time Matt and Fraser spoke, “Bitcoin was around $10,000 . . . By August 2021 it was valued in the $48,000 range (having spiked over 60K!). Many other cryptocurrencies and digital assets like Non-Fungible Tokens (NFTs) have seen similar value increases.”

In this podcast, Matt discusses:

• What is different around legacy planning in the crypto world since October 2020 and August 2021?
• What is involved with estate planning in the white hot NFT space?
• How does one properly staff the roles in crypto estate planning structures?

Tune into the podcast here: https://frazerrice.com/blog/ep-91-matthew-mcclintock-part2/

The following information is intended for general educational purposes only and should not be construed as legal or investment advice.