RE: The Triumvirate of Liquidity
Saw this on crypto twitter and thought some here might like this:
The Triumvirate of Liquidity
Bitcoin is both digital gold and digital Treasuries, and has all the makings of the world’s next risk-free asset…
US Treasuries, gold, and Bitcoin serve as a triumvirate of global liquidity, a powerful trio of safe haven assets that shelter their owners from the risks of our highly leveraged, credit-based monetary system. Of the $300+ trillion in financial assets around the world, only $32 trillion exist at this echelon of safety and liquidity.
Bitcoin captured an astonishing 1% of the trio’s total market value after only eight years in existence, yet this was only a glimpse of the future. In its next chapter, Bitcoin will catapult toward gold’s $9 trillion size, fulfilling its destiny as digital gold. After that, Bitcoin will morph into digital Treasuries and replace them as the world’s risk-free asset before eventually achieving world reserve currency status. Replacing the dollar as the world reserve currency is a lofty ambition, but it will occur only as a byproduct of Bitcoin embodying digital Treasuries.