Bitcoin emerges as alternative to bonds for AI-heavy portfolios

The classic 60/40 portfolio is showing its age. And the culprit isn’t just inflation or rising rates. It’s the collision of two massive forces: AI’s dominance in equity allocations and the increasingly grim math behind US government bonds. A growing chorus of asset managers now argues that investors heavily weighted toward AI stocks should consider replacing some or all of their bond allocation with Bitcoin. The logic is straightforward: bonds aren’t doing their job anymore, and Bitcoin might actually do it better. The bond problem nobody wants to talk about US federal debt has now surpassed $40 trillion. US long Treasuries have delivered negative real returns over the past decade, marking one of the worst stretches in 223 years of available data. In plain terms, investors who parked money in supposedly “safe” government bonds actually lost purchasing power after accounting for inflation. Anthony Pompliano has argued that pairing Bitcoin with AI equities addresses both sides of the equation: the growth exposure from AI and the inflation-hedging properties from Bitcoin. The case for Bitcoin as a bond replacement Bitwise CIO Matt Hougan has been among the most specific in his recomme...