What does it mean in the era of encryption? star-news.press/wp

Phrases such as “Bitcoin is the rate of obstacle” and “Bitcoin is the new Aqaba rate” often re -superiority in Bitcoin, often without context. In short, this slogan means that Bitcoin is the best criterion for investment: avoid investing in anything that gives lower returns than Bitcoin. Let’s go more in the meaning of this phrase and explore what challenges this doctrine and why some people find it controversial.

What is the rate of obstacle?

The Aqaba rate indicates the minimum return that makes investment or project applicable. The obstacle rate is used while determining whether a commercial project or investment will start. If it is very high, the project or investment may be rejected.

To determine the rate of obstacle, one thinks of costs, inflation, interest rates and potential risks. Some companies use the WACC average cost of the Aqaba reference. However, some add the risk allowance to WACC to get a safer hurdle rate. It is understood that the return on the investment rate must be higher than the obstacle rate so that the investment is applicable.

The current return on US Treasury bills is often used for 10 years as a standard when calculating the obstacle rate, as it is a risk -free rate, since other investments are usually more dangerous. Some of the treasury bills are used for 3 months instead. This is what Maxis Bitcoin faces when they say Bitcoin is the rate of obstacle.

How is Bitcoin rate the average obstacle?

There are at least two letters connected to the slogan “Bitcoin is the Aqaba rate”. First, Bitcoiners refers to the weak performance of US Treasury invoices when compared to Bitcoin’s performance.

The second meaning of Bitcoin as the rate of obstacle is that sometimes you should buy Bitcoin instead of trying to find the best performance.

He explains that Bitcoin is better than T-BelLs, and bitcoin lovers usually emphasize the possibility of bitcoin, referring to the maximum steel savings of about 21 million units, and a pre-programming version of the new Betcoat, and pre-defined dates of Halvings, etc. In addition, Bitcoin offers a strong rate of long -term prices. In the past, there were no negative returns in any 5 -year period. The constant value of the long -term value is indicated as one of the main reasons for the inclusion of bitcoin in various state reserves or companies.

Nothing of this is the case for US Treasury invoices, nor for gold, which is one often assets compared to bitcoin. While US Treasury bills are usually chosen as a criterion of the Aqaba rate because they are considered risk -free assets, many admit that the risks are present.

If you look at the graph, you may notice that the return is subject to dangerous fluctuation. In 2008, the rate of return decreased to less than 1 % and this was low until 2015. The Covid-19 pandemic managed to disrupt the rate of return again in 2020. Meanwhile, cryptocurrencies began to grow after the March 2020 market collapsed. In those days, many observers admitted that Bitcoin proved itself as a safe origin of the haven.

A decrease in the T-Bill revenue occurred in 2024. The US Treasury Revenue rates depend on various factors, including federal reserve actions, in a central manner, which cannot be considered in Bitcoin. The current Potus, Donald Trump, calls for the Federal Reserve to reduce prices, which he rejects, as an independent agency, to do, pointing to the threat of inflation as the cause. Once the Federal Reserve complies and reduces prices, the return on the treasury bills will decrease. Some expect that increased inflation will pay bitcoin.

Despite the fact that other traditional assets are more dangerous, Bitcoin argues that US Treasury bills are not of a risk -free origin, and bitcoin is better suitable. Bitcoin’s recognition by governments, financial institutions, companies and prominent financial experts (including skeptics of former Bitcoin) may enhance Bitcoin as the standard.

The Bitcoin Ministry of Treasury companies, such as strategy, metaplanet, or Nakamoto, emphasize that the return on the return over the other assets, and thus the accumulation of bitcoin and the release of shares that offer buyers are provided to the indirect Bitcoin ownership. So far, MSTR has seen higher returns from Bitcoin revenue itself. Even the Bitcoin bubble explosion, Bitcoin may be seen as a hurdle of treasury companies: if you cannot outperform Bitcoin, you should own it.