bitcoin The market is facing a macroeconomic environment unlike any it has encountered in its 17 years of existence.
This is tied to inflation-adjusted bond yields. 30-year Treasury Inflation Protected Securities (TIPS) now offer a yield near 3%, the highest in 17 years, according to TreasuryBonds.com.
“This is one of the biggest wealth preservation opportunities in decades. Investors can lock in annual returns of nearly 3% above inflation for the next three decades, backed by the US government,” the site noted.
In traditional markets, bonds are considered safe havens. When a safe-haven asset offers a 3% yield above inflation, it increases the opportunity cost of holding non-yielding or riskier assets like gold and bitcoin. But for many, especially in the crypto community, the decentralized and censorship-resistant nature of bitcoin makes it a superior store of value and safe haven, and that argument is not without merit. House prices measured in bitcoins, for example, appear significantly cheaper than when measured in dollars.
