I'm glad you find it interesting! I like the way you phrased the question, that's precisely what I'm trying to get at.

To clarify the thought experiment, 1 bond gives you $1 per year in real terms forever. If you buy 2 bonds, you get $2 per year, and so forth.

In other words, if you could invest in a different asset that (1) lasts forever and (2) has a certain rate of return, what yield would you require such that you would consider selling your bitcoin?

josh

if the price of the bond is $2 in real terms, you can receive a 50% return forever risk-free. If the price is $10, you can receive a 10% return forever risk-free, and so forth.

Are you saying regardless of the size bond that you buy you get a $1 return?

There is an interesting thought experiment here: what "features" would another asset have to possess such that you would sell your bitcoin for it?

bitcoin

What would it take for you to sell your bitcoin?

> if the price of the bond is $2 in real terms, you can receive a 50% return forever risk-free. If the price is $10, you can receive a 10% return forever risk-free, and so forth.

Are you saying regardless of the size bond that you buy you get a $1 return?

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There is an interesting thought experiment here: what "features" would another asset have to possess such that you would sell your bitcoin for it?