Methodology Thesis

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About Us

BlockSmith is an international collective of experienced investors and technologists with a shared vision to create software tools that provide actionable data-driven insights for private and institutional clients. These tools have grown over the last 3 years primarily as a means to inform investment decisions in our private and closed fund.

We aim to counter the typical investment mentality in the crypto-asset marketplace by using traditional investment techniques, intending to manage portfolio volatility and track the steady long-term growth of the asset class. Our focus is on enabling our clients to achieve sustainable, long-term capital appreciation through close monitoring of the expansion of developed projects within the space, and the application of a controlled investment system.

Our key motivation is the provision of information that better informs investors. We encourage a diversified and hedged exposure to the high growth potential of crypto-asset technologies, with a managed and methodological framework. We test our valuation methodologies comprehensively, as a means of continuously improving our informational infrastructure. We aim to provide an education to our clients on decisions and processes, as well as on the market at large.

Our vision is that, while many individual crypto-assets will come to the end of their life cycle in the near future, the crypto-asset space as a whole will continue to grow in utility, in order to provide financial conduits, secured by blockchain technology. As computer technology in particular continues to grow and control more of our daily interactions, for example as with the Internet of Things, we see crypto-assets becoming used with an increasing frequency on an expanding scale. We understand that, due to extreme market volatility, most crypto-assets are currently used merely as a short-term medium for investors, ranging from institutional to individual, yet as this use continues to become more widespread, it will drive the long-term growth of the industry at large. We believe that a long-term capital appreciation mindset is an unfortunate rarity in the market, with most crypto-asset investors focusing on short-term returns over short timescales, at the expense of establishing a fundamental value position in key technologies for the long-term.

Many of the more popular arguments against the efficacy of crypto-assets as financial instruments have focused overwhelmingly on the shortcomings of bitcoin. For example, the arguments that crypto-assets fail as a form of money by not fulfilling one or more of the criteria: store of value, unit of account, medium of exchange; while this may apply to bitcoin or any other crypto-asset treated in isolation, there are many crypto-assets established in the marketplace, each with different strengths and weaknesses. As a complete set, crypto-assets are multi-faceted, diverse and dynamic. We believe that the market has the potential to outgrow the use cases of the existing fiat currency system in time, particularly in this technologically expanding era.

We consider crypto-assets to be a novel area of undeniable merit amid the existing investment infrastructure. We argue that any truly diversified portfolio of investments should include a small percentage of crypto-assets, held for the long term. We aim for our investment advice to extend a steady hand to our investors, amid the turbulence of the crypto-asset marketplace.