TD₿: The Triumvirate of Liquidity by Nik Bhatia
TL;DR Bitcoin is both digital gold and digital Treasuries, and has all the makings of the world’s next risk-free asset.
Hey Bitcoiners,
We often describe Bitcoin as digital gold because it’s easy for people to understand that analogy, but the truth is, Bitcoin is much more than that.
Bitcoin is new, groundbreaking financial infrastructure that will change every aspect of how our financial system functions.
This open financial architecture will usher in all sorts of changes including what is used as the preferred risk-free asset throughout the global economy.
This title is currently held by US Treasuries, but Bitcoin offers several advantages to US Treasuries including its lack of counter-party risk and its fixed supply.
This interesting idea of Bitcoin serving as the new risk-free asset of the future was explored in this piece by Nik Bhatia (11/06/2019).
In the future, Bitcoin will be used as the risk-free rate because everyone can trust the code and verify the collateral themselves on Bitcoin’s transparent ledger.
Try doing that with gold or US Treasuries.
Tick tock next block,
Cory Klippsten
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Quote of the Day
“Investing in Bitcoin today is akin to owning a piece of the world’s future financial architecture.” - Union Bancaire Privée, a large Swiss private bank and wealth management firm
Meme of the Day
(h/t @bitminster)