Bloomberg Analyst: Bitcoin Will Benefit from US Currency Debasement
A Bloomberg crypto market analyst suggests that Bitcoin (BTC) will be one of the primary beneficiaries when the US government inevitably resorts to currency debasement. According to Jamie Coutts, allocating just 1% of a traditional 60/40 portfolio (stocks and bonds) to BTC between 2015 and 2022 would have significantly boosted investor gains.
However, Coutts notes that even with optimized returns from a BTC allocation, the average 60/40 portfolio failed to outperform the currency debasement that occurred during those years. As more investors factor in currency debasement, hard assets like Bitcoin are expected to benefit while government bonds may suffer.
Coutts emphasizes the importance of considering monetary debasement in position sizing, stating that nominal returns are useless in the current fiat central bank construct. He predicts that bonds will likely be the biggest losers if Bitcoin becomes a serious consideration for diversified portfolios.
Hot Take: Bitcoin’s Role in Currency Debasement
An analyst from Bloomberg believes that Bitcoin will thrive as the US government resorts to currency debasement. By allocating just 1% of a traditional portfolio to BTC, investors could have significantly increased their gains. However, even with this allocation, the average portfolio failed to outperform the effects of currency debasement. As more investors consider this factor, hard assets like Bitcoin are expected to benefit while government bonds may suffer. It is crucial for investors to factor in monetary debasement when determining position sizes, as nominal returns are irrelevant in the current fiat central bank system. Bonds are likely to be the biggest losers if Bitcoin gains widespread acceptance in diversified portfolios.
By
By
By
By
By
By