Assets: Bitcoin Versus Bonds – Bitcoin Magazine: Bitcoin News, Articles, Charts, and Guides

This article is a republishing of “Mimesis Capital: Inside The Event Horizon, Report #14”

Bitcoin Versus Bonds: Asymmetric Assets

Jack Bogle, the founding father of Vanguard, popularized the concept of a “60-40 portfolio.” The 60-40 portfolio is the fundamental concept that passive buyers trying to effectively switch wealth by means of time ought to diversify their property into 60% shares and 40% bonds.

If bitcoin’s efficiency during the last decade tells you something, it ought to scream that the 60-40 portfolio is dead.

Yale’s endowment fund is a first-rate instance of ahead-considering asset allocation. As of 2020, the endowment held solely 6% of their portfolio in bonds, and in addition they started stacking bitcoin.

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About the Author: Daniel