Omid Malikin

Yes, it is.

The question of how does the asset perform?

This is actually a homework assignment that I give to my students every semester to go download the data and crunch the numbers.

And it's very interesting because Bitcoin has gone through multiple phases over the years where it behaves very differently in relation to other assets.

There was a period early on where Bitcoin was very much a flight to quality asset, where in the event of a macro event or a banking crisis like the one in Cyprus, the price of Bitcoin appreciated immaterially.

Then many people will remember what happened during COVID, which is that the price of Bitcoin crashed along with everything else.

And then in the years after COVID, the price of Bitcoin soared along with everything else.

So I wouldn't read too much into any one of these cycles.

And for me personally, this is where I fall back on my mental model of this idea of monetary insurance.

And the correlations have completely broken down now.

So Bitcoin is not correlated with stocks right now.

It's not correlated with gold.

which is unfortunate for the people who really bought into the digital gold narrative.

But I think this is the beginning stages of it.

This is purely speculative, of course, but I think it starting to behave more like an asset that people want to own when there are problems with more traditional assets.

But over intermediate to longer time horizons, markets can be very noisy in the short term.

But I do believe that years into the future, when people look back on the current period that we're living in now, the numbers will actually start to show that if you move past the most short-term time horizons, Bitcoin did start to act more like an insurance asset.

If you think there's something to what I said about this idea of a, it's not digital gold, but it's new financial infrastructure,

Then, now, when it's 50% cheaper than it was not that long ago, that's the time to start accumulating it.

As to how much one should accumulate, boring academic answer depends on your risk profile and what else you hold in your portfolio.