Ross Stevens' letter is just filled with awesome nuggets. Here is an excerpt from the #Bitcoin section:
"Bitcoin is not risky. Fiat is risky.
Over the last one, three, five, and ten years, long-term fiat savings (20Y+ US Treasuries Index) has cumulatively returned 2%, -33%, -8 %, and 24%, respectively. Over the same time-periods, long-term non-fiat savings, bitcoin, has cumulatively returned 156%, 46%, 1,052%, and 5569%, respectively. Which one is risky? Which one is “backed by air”? Which one should we “close it down”? Which is the one “we don’t need”?
Since 2017, bitcoin has been Stone Ridge’s treasury reserve asset because of my extreme aversion to risk. We run net short USD – which is fancy way of saying we net borrow fiat – to pay bills and make investments. We save in bitcoin.
It would be impossible to overstate the corporate advantages of being on the #Bitcoin Standard. Since 2017, we’ve doubled our franchises to ten, more than 10x’d our trading profi ts, and delivered 25% annualized ROE for our shareholders. Our firm compensation, rent, and total expenses are up 89%, 119%, and 69%, respectively, in fiat, and down 36%, 26%, and 43%, respectively, in #bitcoin.
The more fiat we make, the more bitcoin I buy. You cannot print #bitcoin."
MrAnderson / Mr Anderson
npub1uq…4gcwa
2023-12-30 21:34:07
Author Public Key
npub1uqvpn4jdjazrg0gws84vdnduxltr8pww54k0pmj8pzqmugzsfm7sc4gcwaPublished at
2023-12-30 21:34:07Event JSON
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"content": "Ross Stevens' letter is just filled with awesome nuggets. Here is an excerpt from the #Bitcoin section:\n\n\"Bitcoin is not risky. Fiat is risky. \n\nOver the last one, three, five, and ten years, long-term fiat savings (20Y+ US Treasuries Index) has cumulatively returned 2%, -33%, -8 %, and 24%, respectively. Over the same time-periods, long-term non-fiat savings, bitcoin, has cumulatively returned 156%, 46%, 1,052%, and 5569%, respectively. Which one is risky? Which one is “backed by air”? Which one should we “close it down”? Which is the one “we don’t need”? \n\nSince 2017, bitcoin has been Stone Ridge’s treasury reserve asset because of my extreme aversion to risk. We run net short USD – which is fancy way of saying we net borrow fiat – to pay bills and make investments. We save in bitcoin. \n\nIt would be impossible to overstate the corporate advantages of being on the #Bitcoin Standard. Since 2017, we’ve doubled our franchises to ten, more than 10x’d our trading profi ts, and delivered 25% annualized ROE for our shareholders. Our firm compensation, rent, and total expenses are up 89%, 119%, and 69%, respectively, in fiat, and down 36%, 26%, and 43%, respectively, in #bitcoin. \n\nThe more fiat we make, the more bitcoin I buy. You cannot print #bitcoin.\"",
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