Bitcoin The market is facing a macroeconomic environment unlike any it has ever experienced in its 17 years of existence.
This is linked to inflation-adjusted bond yields. The 30-year Treasury Inflation-Protected Security (TIPS) now offers a yield of nearly 3%, the highest in 17 years, according to TreasuryBonds.com.
“This is one of the greatest wealth preservation opportunities in decades. Investors can secure annual returns nearly 3% above inflation over the next three decades, with support from the U.S. government,” the site notes.
In traditional markets, bonds are considered safe havens. When a safe-haven asset yields 3% above inflation, it increases the opportunity cost of holding no-yielding or riskier assets like gold and bitcoin. But for many, especially in the crypto community, bitcoin’s decentralized and censorship-resistant nature makes it a superior store of value and safe haven — and this argument is not without merit. Housing prices measured in Bitcoin, for example, look significantly cheaper than when measured in dollars.
