Hello!
For many years investors measured everything with the U.S. Treasury yields or the so-called โrisk-free rate.โ That was the benchmark, the hurdle rate to compare stocks, bonds, real estate and all other assets. But today, more and more people are starting to realize that Bitcoin is becoming the new hurdle rate for the world.
Why is that? Because Bitcoin has proven itself in 15 years of life. It survived crashes, bans, criticism, even wars and pandemics. Still, it keeps moving higher over the long run. When you put your money in any other investment, you should ask: does this beat Bitcoin? If the answer is no, then maybe it is not worth the risk.
Bitcoin is unique because it has no counterparty, no government printing it, no company board making decisions. It is pure, neutral, and limited to 21 million. This scarcity makes it the ultimate store of value, and also a measuring stick for all other investments. Gold used to play that role many decades ago. Now Bitcoin is taking the crown.
For companies, this changes the game. If they keep too much cash, they are losing compared to Bitcoin. If they invest in weak bonds, again they underperform Bitcoin. Even stock markets, with all the risk and work of analyzing businesses, often fall behind Bitcoin returns. That is why smart institutions like MicroStrategy, Metaplanet and even sovereign wealth funds are buying Bitcoin. They see it as the true hurdle rate.
The world is slowly waking up. Investors cannot ignore Bitcoin anymore. Every pension fund, every family office, every bank will need to answer the question: why not Bitcoin? This is how it becomes the reference point, the base layer for all capital allocation.
In the future, when people talk about hurdle rate, it will not be about Treasury bonds anymore. It will be about Bitcoin, the hardest money ever created, the real competitor every asset has to beat!
Have a great weekend!