Digital Credit vs. BTC + Treasuries: Why the 'Simpler Trade' Falls Flat
Forget the AI-generated fluff. A new analysis rips apart the idea that combining Bitcoin and Treasuries can replicate Digital Credit. The core difference? Collateral and true diversification, which the 'simpler trade' utterly misses.
The latest paper from Onramp, riddled with AI errors, claims you can replicate Digital Credit by just stacking Bitcoin and Treasuries. This is a non-starter. Digital Credit is overcollateralized by corporate Bitcoin holdings, a crucial layer of external capital that a self-funded BTC/Treasury portfolio simply doesn't have. This external backing is the investor's safety net, something you can't fake with your own money.