Bond Market, we got a problem! (Patreon)
Content
Rest of world is dumping US Treasuries at a record pace. Now Japan is using it as a negotiation lever. The future is scary for bonds.
Problems with Traditional Bonds
Big investors like pension funds and insurance companies are stuck earning low returns, such as 4% on 30-year Treasuries. The level of debasement is far higher. To make matters worse, these bonds are often seen as "zombies" because the original investment (principal) is never truly repaid. Plus, they're usually managed by firms that don’t need to return that money, adding to the inefficiency.
Bitcoin as a Better Alternative
Bitcoin is described as a “vampire”—but in a good way—because it never dies or needs to repay principal. It’s a durable, decentralized and creates a perpetual-yield as long as you are talking a hold period of more than 3 years. Compared to traditional bonds, a Bitcoin-like structure avoids refinancing, collateral requirements, and restrictive loan terms.
Main Takeaway
I made a video last year about how MSTR could eat the bond market, spoke about it earlier this week also. Bitcoin sidesteps the risks and costs of bonds, like refinancing every few years and losing millions in fees.
BONDS ARE DEAD.
BTC BONDS are only way forward for the financial markets IMHO.... as FIAT is going to zero.
MSTR is at the center of this.
Files
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