there’s nowhere else to go

i’ve been lurking on r/bonds and myriad equities subreddits, the reality of the current economic situation has become clear amongst tech normies and bond npcs alike

on the one hand, bond yields have increased such that they present a tempting proposition, “5.1% every year for 10 years? that would be nice, i could lock in the gains i have made riding up the ai bubble”

but today even the npcs know, governments will inflate away the currency such that by the time those bonds mature, the monies returned to them will buy substantially less in real terms

the tech equities npcs know full well that the ai bubble is doomed and that ai compute is a race to the bottom such that the cheapest adequate model will be what is used, the masses will not use frontier models that cost 10x what adequate chinese models do, europe is currently dealing with this via cheap chinese electric cars displacing legacy manufacturers such as volkswagen/bmw etc

in other words if/when ai is used at scale, it will be used and priced like a commodity (electricity, water etc) and not something that can be pumped up like an equity

so the dilemma presents itself thusly; do they lock in a guaranteed loss by fomoing in to government treasuries as yields rise higher and higher or do they subject their capital to the collapse of the ai bubble as ai compute assumes its final form as a commodity

at any rate, when all is said and done, bitcoin wins