Why are some investors choose BitCoin on government bonds?
Historically, American Treasury, Japanese government bonds and German bonds, go into assets for threat -risk investors. They are generally considered to be the least risk assets offering permanent profits. However, since the appearance of Bitcoin 13 years ago, the story of Bitcoin as an alternative to bonds has been slowly increasing in the minds of investors.
The Federal Reserve’s Balance Sheet and the interaction between M1 and M2 mini -supply are also an important consideration to help understand why some investors are moving to BitCoin (BTC).
- M1 Money Supply is a measure of the total amount of money available in the economy. This includes most liquid assets: cash, demand reserves (account checking) and other similar checkable deposits.
- M2 money supply is a wider scale of money than M1. This includes all M1 assets, combined with savings reserves, retail money market funds (MMF) and small -time reserves.
The US Federal Reserve’s measures to expand and shrink its $ 6.69-trial balance sheet directly affect M1 and M2 supply, which in turn affects investor confidence in inflation, bond production and fett assets. When the feed adds or removes money, it changes how much cash (M1) and savings (M2) are available. These changes affect inflation, how much interest bonds pay, and how much people trust the traditional (FAT) money.
In the past few years, the Fed has placed the Federal Fund rate between 4 and 5 Between in the highest range and has also indicated that a reduction in the rate may not necessarily close. On May 26, 2025, Moody, citing financial instability and political instability, reduced Moody’s US debt rating from AA1 to AA1.
In addition, the Japanese bond crisis of 2024-2025 has exemplified how the change in relations between US tariff policies can affect investors’ sentiment and the status of a safe haven for government debt. In this economic scenario, BitCoin is rapidly strengthening its position as a hedge against inflation.
As of June 13, the BTC has performed better than 59.4 %, 85.3 % and 86.17 %, respectively, by 375.5 % in the three -year period, S&P 500, gold and Nes Deck 100.
Do you know? Bitcoin Core Developers have decided that a refreshment related to the botch is certified, as confirmed in a dedication -related -related manner, deciding to extend the range of transactions of 80 bytes from 80 bytes to 4 megabytes. Although this update in the code via Bitcoin Corps 30 Release has given rise to a debate within the community, it aims to remove concerns about data storage techniques and improve the Intent Transaction Output (UTXO) set. This release is to go directly in October 2025.
The height of the importance of bitcoin in the portfolio of modern investors
On January 10, 2024, the approval of the Spot Bit Coin Exchange Traded Funds (ETFS) on January 10, 2024, was a watershed moment for the role of Bitcoin in the portfolio of both traditional and retail investors. In the United States, 12 bitcoin spots in ETFS trading are the total assets under the $ 132.5 billion management (AUM), according to Bitbo’s data from June 11, 2025. This is a memorable personality that these ETFS have been trading for more than 300 days.
Below is the full timeline of the USSEC for approval of the Bitcoin spot ETF list:
- 2013: File BitCoin ETF application for the first time with SEC, Cameroon and Tyler Winkloos, the founder of the Gemini Cryptoconnery Exchange. Grace Scale launches the Bitcoin Investment Trust.
- 2017: Referring to concerns about the maturity and manipulation of the asset market, the SEC rejected the application of the Winklovos ETF.
- 2018: The SEC rejected the Refield ETF request from the Onekos twins, citing inadequate market controls.
- 2020: The gray scale transforms its confidence into the SEC reporting entity, which aims to increase the transparency of the funds.
- 2021: The SEC has approved the first US Bitcoin Future ETF request filed by the processor, rejecting the spot ETF applications.
- 2023: The Gray Scale has filed a lawsuit against the SEC after rejecting its request to convert its Bitcoin Trust into the spot ETF. An American appeal court has rejected the rules that the SEC failed to justify the rejection, thus forcing it to re -consider the request.
- Mid -2023: The world’s largest asset manager, Blackrock, files for Black, Spot Bit Coin ETF. A wave of spot bit coin ETF applications follows firms such as Federation, Franklin Templeon, Wisdom Tree and others.
- January 10, 2024: The SEC has approved the 11 spot bit coin ETF, which starts trade on US exchange the next day.
Since then, the arrival and flow of these ETFs is different along the market feelings, but they have broken several records and are expected to continue the work due to institutional interest in the asset. The chart below his start on January 11, 2024 shows the daily arrival and emissions of the US BTC spot ETF.
According to the calculations associated with the modern portfolio theory (MPT), a sharp proportion of a portfolio can be improved around 16 % allocation in bitcoin, as revealed in a Galaxy report released on May 27, 2025.
- Modern Portfolio Theory (MPT): This is a framework created by Nobel Laureate Harry Marcutz for the construction of maximum investment departments in the 1950s. Since then, it has been used as a reliable analytical tool to model the scenario of an ideal portfolio allocation in different assets classes.
- Rapid ratio: This matriculation measures a recession withdrawal from an investment risk. This is a way to measure how much return you are getting for the risk you are taking.
At this level of allocating portfolio, a sharp proportion for BTC will be around 0.94. In comparison, the sharp proportion of US Treasury Bonds is between 0.3 and 0.5, which is a data per data. This means that the US Treasury Bonds offer a low return for the same level. In simple terms, Bit Coin gives you an approximately 0.
Do you know? On June 9, 2025, Blackrock’s Esarus Bitcoin Trust became the fastest ETF in ETF (IBT) history, crossing the AUM by $ 70 billion. Since senior Bloomberg ETF analyst Eric Balchunas showed the X, the fund reached the mark in just 341 days, which is five times faster than the SPDR Gold Shares (GLD) ETF, which is the previous record holder.
BitCoin or Autonomous Bonds: Which investors are more profitable in 2025?
There are many reasons that even dangerous investors are considering investing in bitcoin instead of production, volatility, regular reservations and access to autonomous bonds among others.
The following is a comparative review of the two asset classes and their unique features for investors.
Although the profit on BitCoin is not assured, the value of the asset reached $ 112,087.19 on June 10, 2025. The Planb’s stock -to -flu model estimates that at the rate of June 12, the total supply mining of the BTC will take about 55 55 years, without calculating half the events. Accounting for half of the events, the total supply of 21 million bit coins will be made up to 2140. This low rate of supply in supply is helpful in the story that Bitcoin is a short asset, which will only be reduced because Bitcoin has reduced the prizes of each new block of mining on the network by 50 %.
Billionaire investors such as Larry Fink, Stanley Dicken Miller and Paul Tuder Jones are moving toward Bitcoin as a hedge against inflation and government mismanagement. The Fink has seen Bitcoin as an innovative gold alternative, among which he calls the most embedded inflation in decades.
Dukin Miller not only supports Bitcoin but has also openly shortened US bonds, which has called the feed rate policy disconnected from the reality of the market. Meanwhile, Jones has warned of promoting US debt and expects policy makers to turn their way, which will strengthen BitCoin’s appeal as a price reserve. Collectively, these Wall Street Titan indicates a change: tall bit coin, short bonds.
Do you know? Michael Seller’s strategy (known as the first microstentness) has achieved 582,000 BTC since starting to buy tokens in August 2020. After its latest purchase on June 9, the token was purchased at an average of $ 70,86 after the latest purchase of 1,045 BTC.
How BitCoin’s fixed supply and easy access is disrupting conventional portfolio structures
The launch of the Bitcoin network resulted in the birth of a new financial asset class. The BTC is one of the only assets in the world that is less than unrelated, steadfast, and is permanently supplied.
Since this is a strict code in the network’s primary protocol, there can never be more than 21 million bit coins. As of June 11, 2025, more than 19.8 million BTCs have been mints, per botbo data. This is 94.6 % of the total supply.
On May 26, Bitcoin Network’s Hashrett targeted the height of 913 exhahashes every second (EH/S), which is an increase of 519 EH/s 2024 less than 77 %. Hashrat represents a total computational power that is used by proof working miners to verify transactions and add blocks to the network. It is important that miners need to spend more computer power to participate in the network quickly.
On the contrary, the provision of independent bonds has been fixed by the government, which can issue new bonds when needed. In this way, there is no shortage of shortages for the government bonds.
In addition, the independent bonds are very limited by some factors, especially for retail investors.
- Limited platform for access: Retail investors often do not have direct access to government bonds and have to rely on asset managers, banks or brokers such as broom.
- Complex Settlement Infrastructure: These bonds are commonly cleared by institutional houses such as eurocolar and clearance streams, which are not designed for retail use.
- Quick Lack of Instant Lakedate: Government bonds are only available to investors during the trading hours of this particular country, which does not allow investors to open their position outside market hours on weekends and bank holidays.
- Foreign autonomous bonds: In order to purchase foreign autonomous bonds, investors need to access international brokerage accounts, and also include currency risk and significant geographical political threat.
Since BitCoin is a 24/7 availability of a विकेंद्रीकृत and accessible asset, it has overcome many challenges that can invest in independent bonds. In addition, since the crypto wallets improve the user’s experience and make it easier to board the ship, and as the main and decentralized crypto exchange spreads, Bitcoin is becoming more and more accessible. This ease, when compared to autonomous bonds, is ease access to investors, to help investors consider a change in the BTC’s independent bond.
