Bitcoin vs. Bonds: A Comparison of Annualized Rate of Return
In a recent discussion at Bitcoin Park, Michael Saylor highlighted a key point regarding the performance of Bitcoin and bonds over the past four years. According to Saylor, Bitcoin has exhibited an impressive annualized rate of return (ARR) of +55%, whereas bonds have shown a negative ARR of -5%. This stark contrast in performance underscores the growing appeal of Bitcoin as an alternative investment asset with a higher potential for returns.
Regulatory Constraints and Investment Choices for Companies
Saylor also discussed the regulatory challenges faced by companies when it comes to investment choices. Many ongoing entities are required to purchase U.S. Treasuries, effectively locking up funds that could have been allocated to other assets until January 2024. This mandate, governed by SEC Rule 23 under SEC 40, limits the flexibility of companies in diversifying their portfolios and exploring potentially more lucrative investment opportunities.
Bitcoin as a Strategic Asset for Businesses
Thaler emphasized the strategic importance of Bitcoin as a capital asset for businesses in light of the challenges posed by traditional investment options. He highlighted how companies like MetaPlanet have embraced Bitcoin as a means of capitalizing on its superior returns compared to bonds. This shift towards Bitcoin as a strategic asset is driven by its ability to protect capital from economic downturns and provide greater flexibility in investment decisions.
