Bitcoin Triumphs Over Treasuries in Volatility

Since 2013, Bitcoin has significantly outperformed US Treasury bonds, showcasing a 74% annual advantage in the context of extreme volatility. The current market narrative often focuses on traditional economic indicators such as long-term rates and stock crashes, which can obscure underlying issues. The government responds to economic challenges by managing the issuance of bonds, particularly favoring short-term ones to mitigate volatility. This strategic move positions neutral reserve assets like gold and Bitcoin favorably against long-term treasuries, as they ultimately represent alternative, risk-free investments. Consequently, Bitcoin and gold are increasingly seen as superior competitors to traditional bonds, driven by their finite supply and infinite duration.