Bitcoin is the only asset that is simultaneously a risk-on asset and a risk-off asset.

Thats too good to be true right?

Bitcoin is a risk-on asset because it is a fast growing new technology going through its early adoption phase, and it is a risk-off asset because it is not subject to any of the counterparty risk prevalent in the traditional financial system.

In a risk-on environment bitcoin is the fastest horse in the race because it is a highly disruptive technology investment. During a risk-off environment bitcoin is the fastest horse in the race because it has no financial counterparty risk while being able to maintain its global payments network, safe asset storage (self-custody), and its always-on network.

It is easy to understand how bitcoin is a risk-on asset but understanding its risk-off qualities is even more interesting.

If there is a debt crisis that affects mortgage debt corporate debt and sovereign debt (ie realestate stocks and bonds) bitcoin is not directly affected because bitcoin is not built on debt markets and interest rates.

If there is a banking crisis where banks become viewed of as unsafe bitcoin shines as the solution to digital payments and digital money without the same counterparty risk of banks. If banks fail around the world bitcoin still produces a new block every 10 minutes, self custodied bitcoin is still safe, and the network still propagates transactions flawlessly.

Bitcoin is an asset and a savings account without any of the risk found in debt markets and without any of the traditional financial counterparty risk prevalent in banking.

If interest rates are dropped and the financial world goes risk-on bitcoin is the best place to be. If the financial system collapses and the world goes risk-off bitcoin is the best place to be. No matter the scenario bitcoin is the fastest horse in the race.

This is very unique for an asset, it has all of the safety of gold along with all of the growth of a new globally disruptive technology trend.