It is my humble opinion that bitcoin will one day supplant US Treasuries as humanity's risk-free asset of choice.

The riskiness of an asset is a function not of its price but of its intrinsic properties. The riskiness of a firm that produces widgets is purely a function of the riskiness of the firm’s operations. Greater certainty about these operations makes investing in the firm less risky. The volatility of the firm’s stock price is a symptom of this risk but otherwise completely irrelevant.

I believe bitcoin will become the world’s risk-free asset because on a standalone basis, its future operations are as certain as the laws of physics will allow. All risks that surround bitcoin are regulatory in nature, unrelated to bitcoin’s core operations. Being man-made, these risks will fall away with time. Politicians rise and fall, governments come and go, but Bitcoin’s core operations will remain as they are today.

We are on an indelible march toward a future without regulatory risks. This march may take decades, or even centuries, but bitcoin’s future will only become more certain, not less. As paradoxically as it sounds, perhaps the least risky asset in the world is one that produces nothing at all, but certainty itself.

I think we all deserve a little bit of certainty in our uncertain world.