The financial case for Bitcoin Maximalism

In today's fiat world, in order to simply keep up, the average person must spend hours of their time per week and pay a lot of money to financial advisors, merely trying to stay ahead of the money printer (monetary inflation).

This has led to the financialization of everything. People must turn to anything, that isn’t fiat money, to try to maintain wealth. The moral hazard and problem with fiat money itself is a separate rabbit hole.

• ETFs
• Gold
• Bonds
• Real estate
• Stocks

All are used as an attempt to maintain purchasing power over time.

Yet, most people miss the forest for the trees. People can feel that the system is intrinsically unfair, but they can’t point out exactly what. Most people cannot see the system from the outside and realise that it is the money itself that is broken.

The Price of Tomorrow, by Jeff Booth, does a good job of highlighting this by focusing on the problem of inflation, before talking about the solution.

This leads us to Bitcoin.

Most people first buy bitcoin for the number go up technology (NgU). They have a problem (storing value) and Bitcoin is the solution.

NgU technology works thanks to absolute scarcity and an exponentially decreasing block reward. Unlike gold, you can verify the total supply of Bitcoin with a cheap full node. 21,000,000 coins. No more, many less.

Source: Twitter@AnilSaidSo

NgU technology has made #Bitcoin the best-performing asset of the last decade, by far. Although past performance isn’t a measure of future success, it’s hard to ignore the market outcome to date.

“At the end of the day, the best profit-maximizing strategy is to own the fastest horse.”— Paul Tudor Jones on

Shifting to a personal perspective, I obsessively track all my assets and liabilities, enabling me to track my net worth overtime and manage risk.

From 1st January 2017, to 30th June 2022, my personal portfolio returned 58.3% time-weighted returns (TWR)

The best performing hedge funds returned ~60% TWR

#Bitcoin returned 171.82% TWR

Simply holding Bitcoin and “stacking sats” outperformed the best hedge funds in the world.

The Bitcoin Maxi plebs outperformed everyone while shitposting on Twitter and will continue to do so thanks to NgU technology.

This is one of the financial reasons I eventually became a Bitcoin maximalist.

Source: Author’s portfolio indexed

When you use Bitcoin as your money, thus denominate your portfolio in Bitcoin terms, it’s extremely hard to find assets that will outperform Bitcoin. Most people will simply continue to become poorer in BTC terms over time.

The only way to stop getting poorer in Bitcoin terms is to become a Bitcoin maximalist and have the majority (>50%+) of your net worth in satoshis.

This short and succinct tweet by Matt Odell sounds ridiculous at first but is actually a deeply profound statement. This alone requires a completely different article describing the unique properties of deflation and a fixed monetary unit.

Bitcoin is also not just superior on absolute returns. Its Sharpe and Sortino ratio, and measures of risk-adjusted returns are superior.

Plebs looking down on the hedge funds

Bitcoin has the best Sharpe ratio.

The Sharpe Ratio is a measure of returns adjusted for volatility. This measure, however, unfairly punishes upwards volatility.

Sharpe Ratio, Source: https://casebitcoin.com/charts

Bitcoin has the best Sortino ratio.

The Sortino Ratio is a measure of returns adjusted only for downwards volatility. This is more accurate, as most people care more about downside protection.

Sortino Ratio, Source: https://casebitcoin.com/charts

Thus, when looking at Bitcoin from a money manager's perspective of risk vs. reward, Bitcoin still outperforms every other asset that you could potentially hold.

In the wise words of Michael Saylor:

Bitcoin is also perfect private property. It is highly liquid. It trades 24/7 all year round. It has no or minimal cost to hold. Its ownership record is enforced by 15k+ nodes and verified through proof of work. Ownership is proved through public/private key cryptography, instead of politics.

ETFs. Gold. Real Estate. Stocks. VC. Hedge Funds — These are all inferior forms of private property.

At the end of the day, Bitcoin replaces fiat money, destroys the need for a large-scale investment industry and returns power to the smallest minority — the individual. Bitcoin makes saving great again.

This is just the start of the rabbit hole. Fix the money, fix the world.

tldr: come for the gainz, stay for the revolution.

Based on a Twitter Thread

A guest post by @interstellarbit