Gold, Bitcoin, and Pokémon cards, which one is the "perfect collateral" of this era?

The stock market has long been reduced to a casino, bonds have lost their hedging function, and young people are no longer willing to participate in the rotten games of the old financial system. As an investment expert who once broke through the barriers at Morgan Stanley, he has rebuilt investment logic by breaking the shackles of the system with a strict rule. This article is sourced from Bonnie Blockchain and organized, compiled, and written by TechFlow. (Background summary: Bridgewater's Dalio: The US debt crisis is about to explode; you should allocate 15% of your assets to buy 'gold and Bitcoin') (Background information: Rich Dad warns 'ETFs are just eyewash': owning physical gold, silver, and Bitcoin is the true wealth truth in chaotic times) Key Points Summary Traditional investment allocation is dead! Jeff Park, a trader at Bitwise Asset Management, publicly stated for the first time in the Chinese-speaking world: a portfolio of 60% stocks and 40% bonds is just an outdated script! The stock market has long been reduced to a casino, bonds have lost their hedging function, and young people are no longer willing to participate in the rotten games of the old financial system. As an investment expert who once broke through the barriers at Morgan Stanley, he has rebuilt investment logic by breaking the shackles of the system with a strict rule. Jeff Park proposed a radical investment theory and designed a new set of survival rules for this uncertain new era. Highlights of Insights • 'Resistance assets' can hedge 100% of compliance assets (these assets rely on brokers and leverage operations). 'Resistance assets' are hard to obtain; they are not things you can easily buy in the stock market, they have non-homogeneous characteristics, and they cannot be leveraged. • Scarcity itself is the value. In a world full of financial repression, we need to look for assets that are not artificially manufactured, which is why Bitcoin is particularly important today. • If you really want to diversify from the traditional financial system, then those assets that do not rely on the system and are completely controlled by you are truly valuable. This 'detachment from the system' characteristic is the most important source of value for these assets. • The key to value lies in that it must be a scarce physical asset that cannot be easily manufactured; these assets also need to have non-homogeneous characteristics, meaning they cannot be easily replicated or standardized; another key factor is that these assets must have a certain level of censorship resistance, meaning they do not rely on the traditional financial system. • If you really want to diversify from the traditional financial system, then those assets that do not rely on the system and are completely controlled by you are truly valuable. This 'detachment from the system' characteristic is the most important source of value for these assets. • People often confuse the relationship between value and price, but the distinction is that price reflects someone's intention to pay for something, while value is the inherent value of something itself, and you typically do not know its value until you experience it. • Young people have realized that the traditional financial system has been somewhat manipulated, and they generally have low trust in the stock market. • Investing in Bitcoin is not always about betting on its price increase; sometimes it is actually about betting on the decline of fiat value. • Nowadays, our culture is increasingly inclined to simplify things, either 'right' or 'wrong'; either 'left' or 'right', leaving almost no room for nuances. But in reality, the world is full of nuances, and options trading can train you to pay attention to the possible distribution of outcomes, allowing you to view issues more comprehensively. • The altcoin market is clearly not as active as it used to be. If you want to pursue a high-risk experience, it is better to try Bitcoin options instead of buying some memes, as it can achieve similar effects. • If you are optimistic about Bitcoin, investing in Bitcoin through options is a direction worth trying, especially suitable for those with a long-term investment vision. • I learned a lot at Morgan Stanley; the first rule is 'don't make mistakes,' and the second rule is 'always remember the first rule.' These lessons are also very applicable in the cryptocurrency field. • RWA mainly has two development directions. The first is tokenization of existing financial assets. The second is tokenization of assets that have never been traded or securitized. The traditional 60/40 investment portfolio is no longer applicable & radical investment theory David: Today we have invited Jeff Park, the head of Alpha strategies at Bitwise Asset Management, and also a seasoned portfolio manager. Jeff, welcome! It's great to see you, and we look forward to hearing your views on Bitcoin and the cryptocurrency market. Bonnie: Jeff is very popular on Twitter, especially his posts about 'radical portfolios' have sparked widespread discussion. Jeff, can you tell us what a radical portfolio is? Jeff: That's a great question. I learned traditional economics and finance from a young age, which has almost run through my entire life. When I first entered the workforce, the global financial crisis broke out, and I found that the theories I had learned seemed unable to explain reality. After the crisis, we entered a long-term era of 'financial repression' (where governments suppress interest rates and restrict capital flows through policy interventions), and this content cannot be found in textbooks. The 'radical portfolio' is actually a summary of my personal experience; it redefines how a new generation of investors should allocate assets. The traditional 60/40 portfolio, that is, 60% bonds and 40% stocks, was considered a classic strategy for balancing risk and return. However, in reality, we find that the correlation between bonds and stocks is higher than imagined, and this combination does not truly achieve diversified risk management. The core of a radical portfolio is to fundamentally rethink what constitutes a diversified asset allocation and how to redefine the sources and distribution of risk. Bonnie: So what does your theory propose as a new asset allocation method? Jeff: Yes, we have to start with why the traditional 60/40 portfolio has failed. When you delve into this question, you will find that since the global financial crisis, the price fluctuations of most securities and assets have actually been caused by government interventions and cross-border capital flows. Currently, the global monetary system is experiencing massive fiscal spending, which has also distorted the concept of GDP. For example, GDP includes government spending, but can this really be counted as economic growth? This distortion has gradually transformed bonds from a hedging asset into a risk asset. Once people realize this, they will find that the so-called 60/40 portfolio is actually 100% of some kind of asset. So what is this 100%? I believe it is 100% of 'compliance assets.' These assets are the ones we trade in a highly financialized world, and they rely on brokers and leverage operations. The operation mode of this global arbitrage system is the foundation of traditional finance. So how do we hedge this 100% of compliance assets? The answer is what I call 'resistance assets.' These assets are hard to obtain; they are not things you can easily buy in the stock market, they have non-homogeneous characteristics, and they cannot be leveraged. For example, gold, but this refers to physical gold, not GLD ETF. Physical gold represents a decentralized way to detach oneself from the traditional financial system. Bitcoin is also a kind of resistance asset; it provides another way to express a perspective on this asset class. In addition, there are high-end artworks...