Core Insights - Bitcoin is trading near record highs, with its appeal as a store of value growing among investors due to the ongoing money printing by central banks [1][5] - The narrative of Bitcoin as a benchmark for investment returns is emerging, as traditional assets struggle to outperform it [2][3] Market Dynamics - The traditional financial market requires extensive knowledge and monitoring, which is challenging for average investors, making Bitcoin's simplicity attractive [1] - The majority of Bitcoin transactions involve existing holders selling to new buyers, creating a frictional trading environment rather than new asset creation [3][4] - An increasing percentage of Bitcoin is being held in illiquid supply, indicating that more holders are unwilling to sell, which could drive prices higher as demand increases [4][5][6] Comparative Performance - Gold has outperformed Bitcoin in the current year, with gold up 50% and Bitcoin up about 33%, but Bitcoin has historically shown higher returns, especially in Q4 [7][8] - Over the past five years, gold has increased by approximately 100%, while Bitcoin has surged by a significantly larger percentage, highlighting its volatility and growth potential [8] Investor Demographics - The investor base for gold tends to be older, including central banks and institutions, while Bitcoin is attracting a younger demographic that is gradually aging as the asset matures [9] - There is speculation about central banks potentially holding Bitcoin in their reserves, which could have significant geopolitical implications [10]