Bitcoin is most compelling if 2 narratives are simultaneously true, gold and tech.
If Bitcoin traded just like gold, there's no alpha. Gold's history and depth as a reserve currency wins, there's no reason to buy Bitcoin then. The lack of tech-like upside would imply it offers no utility beyond gold.
If Bitcoin traded just like a tech stock, there's asymmetry, but then it becomes a trading instrument with no floor and therefore not a viable long term hold.
The ideal is gold correlation is the floor, which appeals to fear, while tech asymmetry alpha appeals to greed.
You need both since all human action is based on either fear or greed.
The properties of both result in what quants call its sharpe ratio, which is what nothing else can compete on.
That's a better way to put it. Bitcoin's real advantage isn't becoming gold, it's having some of gold's downside protection while keeping the upside of a tech asset. You want both.
That precludes "starting to look like"
Bitcoin is most compelling if 2 narratives are simultaneously true, gold and tech.
If Bitcoin traded just like gold, there's no alpha. Gold's history and depth as a reserve currency wins, there's no reason to buy Bitcoin then. The lack of tech-like upside would imply it offers no utility beyond gold.
If Bitcoin traded just like a tech stock, there's asymmetry, but then it becomes a trading instrument with no floor and therefore not a viable long term hold.
The ideal is gold correlation is the floor, which appeals to fear, while tech asymmetry alpha appeals to greed.
You need both since all human action is based on either fear or greed.
The properties of both result in what quants call its sharpe ratio, which is what nothing else can compete on.