Simply Bitcoin BlackRock DUMPS Bonds for Bitcoin!? | Beyond Bitcoin
Jul 17, 2025
Investing wisdom is being challenged as traditional financial theories crumble. Bitcoin is emerging as a revolutionary alternative to government bonds. BlackRock's bold move from bonds to Bitcoin sparks a discussion about the changing landscape of investment strategies. Are 'safe' assets really safe? The podcast dives into the implications of this shift for future wealth management, urging listeners to reconsider their financial choices in an unpredictable world.
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MPT's Risk-Free Asset Myth
- Modern Portfolio Theory (MPT) has guided investing for 80 years, focusing on an assumed risk-free asset: government bonds.
- MPT optimizes portfolios between this risk-free asset and a market portfolio to balance risk and return.
MPT Framework Explained
- MPT relies on a risk-free asset benchmark, originally U.S. Treasury bonds, and a theoretical market portfolio.
- Investors optimize between these two to find balance in risk-adjusted returns.
BlackRock Embraces Bitcoin
- BlackRock realized bonds are no longer truly risk-free after the 2022 UK financial crisis and began replacing them with Bitcoin.
- They view Bitcoin as a superior risk-free asset and potential replacement for the market portfolio in MPT.