A gentle reminder that risk only equals volatility in academia.

True financial risk is the chance of losing your purchasing power over time.

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Also, in order to obtain security and stability in your life, risk and volatility must be expected and embraced.

ā€œLet’s use the t-bill as our risk free rateā€ - some academic with zero Bitcoin

Because it literally is risk free... šŸ˜‚

Using the inflation-adjusted or ā€œmoney supply-adjustedā€ T-bill rate as the ā€œrisk-free rateā€ could seem reasonable.

It’s the trap of focusing only on what can be modelled even if it doesn’t match the real world (which it can’t precisely because it’s a model).

Or all at once because ownership didn't mean what you thought it meant. Bitcoin fixes both.

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