Assets: Bitcoin Versus Bonds – Bitcoin Magazine: Bitcoin News, Articles, Charts, and Guides


This article is a republishing of “Mimesis Capital: Inside The Event Horizon, Report #14”

Bitcoin Versus Bonds: Asymmetric Assets

Jack Bogle, the founder of Vanguard, popularized the idea of a “60-40 portfolio.” The 60-40 portfolio is the basic idea that passive investors looking to efficiently transfer wealth through time should diversify their assets into 60% stocks and 40% bonds.

If bitcoin’s performance over the last decade tells you anything, it should scream that the 60-40 portfolio is dead.

Yale’s endowment fund is a prime example of forward-thinking asset allocation. As of 2020, the endowment held only 6% of their portfolio in bonds, and they also began stacking bitcoin.