Understanding Bitcoin: A CPA’s Perspective

AICPA Personal Financial Planning (PFP) Podcast – Jan 28, 2025
Host: Marc Astrinos
Guest: David Aransky
(Episode focuses on how CPAs and financial planners should think about Bitcoin as a savings and investment vehicle, its network properties, risks, the ETF landscape, and practical portfolio considerations.)

Episode Overview

This episode explores the complex and evolving role of Bitcoin from the perspective of personal financial planners and CPAs. Marc Astrinos and guest David Aransky break down the reasons for investing, compare Bitcoin with traditional assets, discuss its unique characteristics as both an asset and a network, and provide guidance on how to consider Bitcoin allocations within client portfolios—now including ETF options.

Key Discussion Points and Insights

Why Do People Invest (And Where Does Bitcoin Fit)?

• Savings vs. Investing
  • Saving exists to provide for future uncertainty; investing is deploying savings into something expected to grow in value. (C, 01:09)
• Speculation Is Inherent to All Assets
  • All investments, even "income-producing" ones, have speculative elements—not just Bitcoin. (C, 03:19)
• Quote:
  • “If you don’t want to have any sort of speculative return, you should probably only spend your interest and dividends...most people are planning to actually sell some of their shares of stock during retirement."
    — David Aransky [03:05]

What Is Bitcoin?

• Digital Gold… and More
  • Bitcoin is often called “digital gold,” but that analogy falls short. It's an autonomous, decentralized, digital monetary network with an immutable ledger—what Aransky calls “the Internet of Money.” (C, 04:31)
• Dual Nature: Asset vs. Network
  • The value comes not just from Bitcoin as an asset, but from its open, censorship-resistant, and permissionless network properties. (C, 05:11)
• Quote:
  • “Practically speaking... the ability to send value digitally, anywhere in the world without a middleman, and resistant to censorship—there’s literally no other monetary network that can do this better than Bitcoin.”
    — David Aransky [05:52]

Addressing the Common Criticisms

• No “Intrinsic Value” Argument
  • Bitcoin is often criticized for producing no dividends or cash flow, but the U.S. dollar doesn't either unless invested. Its value is in being accepted for exchange, like other monetary assets. (C, 06:49)
• Liquidity and Adoption
  • While not used for everyday purchases like coffee, Bitcoin is more globally convertible than many local currencies and more liquid in some respects than gold or stocks internationally. (C, 07:44)
• Quote:
  • “The dollar is a melting ice cube. It's losing 7% or so of its value every year.”
    — David Aransky [08:13]

Bitcoin’s Investment and Portfolio Case

• Long-Term Store of Value?
  • Bitcoin should be compared to other long-term savings assets such as stocks, real estate, and gold. (C, 09:36)
• Known Supply, Global Demand Dynamics
  • Unlike gold or fiat, Bitcoin’s supply is absolutely capped (21 million). Its value depends on whether people want an asset that's globally portable, censorship-resistant, and scarce, especially in geopolitically unstable or inflationary settings. (C, 10:58, 12:25)
• Quote:
  • "If you're in Ukraine and the war breaks out and you want to leave...you might actually be able to take that wealth with you."
    — David Aransky [12:48]

Expected Returns and "Market Saturation"

• Market Maturity and Returns
  • As Bitcoin matures (like gold), its expected returns should decrease. Pre-saturation, as network effects grow, its return potential is higher. (C, 14:42)
• Stock-to-Flow Insights
  • Bitcoin’s new supply is already proportionally lower than gold’s, further reinforcing its scarcity narrative. (C, 15:43)
• Quote:
  • “With Bitcoin, the more people are trying to mine it, the harder it gets to mine. We don't have to worry about inflating the supply beyond what is scheduled.”
    — David Aransky [16:05]

Risks of Not Allocating, Skepticism, and Personal Evolution

• Risk of Exclusion
  • In contrast to stocks like Nvidia which get included in indexes, Bitcoin is an off-index opportunity—requiring intentional allocation. (C, 16:55)
• Changing Perspectives
  • Aransky discusses his own skepticism and gradual understanding, moving from dismissing Bitcoin to appreciating its unique properties after deep research. (C, 19:01)
• Quote:
  • “Most of my objections to Bitcoin were not accurate... I just hadn’t done the research because I had screened it out on a heuristic level.”
    — David Aransky [20:01]

“Is It Too Late?” and Bitcoin’s Future Role

• Mainstream Transition
  • The podcast argues it’s not “too late.” Widespread adoption (e.g., ETFs, Wall Street involvement) has just begun, and it may become standard to have a small allocation, like gold. (C, 21:06)
• Insurance and Steady-State Value
  • Bitcoin can be a hedge against inflation, currency debasement, and systemic risks, but most bullish outcomes don’t rely on doomsday scenarios. (C, 23:07)
• Quote:
  • “The most bullish case for Bitcoin is probably actually that things continue going on the way they have, yet the world doesn’t fall apart, that the dollar doesn’t lose its reserve currency status.”
    — David Aransky [21:55]

ETF Adoption and Advisor Considerations

• ETF as Entry Point
  • Bitcoin ETFs offer easy access for advisors and clients, though only direct ownership grants full network benefits (e.g., self-custody, censorship resistance). (C, 25:49)
• Practical Portfolio Construction
  • Starting allocations can mirror its weighting relative to global investable assets (e.g., 1% as a market cap reference), with the flexibility to increase as comfort and understanding grow. (C, 29:03)
• Quote:
  • “You can allocate much cheaper today...I think you don’t need to go that deep to have a big enough understanding of, ‘Wow, this is something that I misunderstood.’”
    — David Aransky [28:50]

How to Start the Conversation with Clients

• Education First
  • Advisors should aim to educate, not prescribe a fixed allocation. Today, Bitcoin as an asset class is “big enough that you really should dig in and try to understand it.” (C, 30:11)
• Due Diligence and Skepticism
  • Even as major firms push Bitcoin, skepticism remains healthy—advisors and clients should consider the motives of product providers, but also inform their own views through reputable research. (C, 32:05)
• Quote:
  • “It’s time to understand it.”
    — David Aransky [31:19]

Notable Quotes & Memorable Moments

• “All investing has speculative nature...most people are planning to actually sell some of their shares of stock during retirement” — David Aransky [03:05]

• “Bitcoin is like an autonomous digital monetary network that’s open to anyone, but controlled by no one...the Internet of money.”
  — David Aransky [04:41]

• “The dollar is a melting ice cube. It’s losing 7% or so of its value every year.”
  — David Aransky [08:13]

• “You aren’t going to take your house with you, you aren’t going to take your stocks with you. And so...even if you don’t see a need for bitcoin, the question is, does somebody else demand it?”
  — David Aransky [12:48]

• “With Bitcoin, the more people are trying to mine it, the harder it gets to mine...We don’t have to worry about inflating the supply beyond what is scheduled.”
  — David Aransky [16:05]

• “I don’t think it’s too late at all...it’s not uncommon for people to have a 5% allocation of gold...I wouldn’t own Bitcoin myself if I didn’t think that demand, at least that demand wasn’t going to go down.”
  — David Aransky [21:06]

• “You don’t need to go that deep to have a big enough understanding of...this is valuable to somebody in the world and also provides some protection against the debasement of the currency.”
  — David Aransky [28:50]

• “Listening to this podcast is not enough... but it’s probably time to start learning about it.”
  — David Aransky [30:51]

Timestamps for Key Segments

• Investment and Speculation Foundations – 01:09–03:55
• What Is Bitcoin & Why Demand Persists – 04:31–06:23
• Bitcoin vs. Traditional Investments – 06:23–10:08
• The Scarcity & Network Effects of Bitcoin – 10:08–13:21
• Expected Returns and the Market Cycle – 14:42–16:31
• Risks of Not Allocating to Bitcoin – 16:55–18:39
• Personal Skepticism Transformed – 19:01–21:06
• Is it Too Late? Future Outlook – 21:06–24:26
• ETF Adoption and Practical Advice – 25:49–29:42
• Getting Clients Comfortable: Education & Skepticism – 30:11–33:33

Tone, Language, & Takeaways

• Tone: Professional, measured, yet conversational and accessible.
• Summary Message:
  Bitcoin has matured from a fringe asset to a viable portfolio consideration for CPAs and financial planners. While not risk-free and still evolving, its unique properties warrant understanding and—potentially—a small allocation. Advisors and clients are encouraged to approach with healthy skepticism, educate themselves, and make decisions fitting their own risk tolerance and financial philosophy.

Further Resources

• AICPA PFP Division webcast: “Understanding Bitcoin”
• Three-part podcast archive on Bitcoin
• Research from Fidelity and BlackRock tailored for financial advisors

“It’s probably time to start learning about it... It’s time to understand it.”
— David Aransky [31:19]