Bitcoin’s Inflation Hedge Carries a Hidden Cost Exacerbated by Leverage
Key Highlights: Different ways of financing a Bitcoin allocation—whether through unencumbered cash, margin borrowing, or derivatives—create vastly different economic costs and risk profiles for identical price outcomes. While cash buyers bear opportunity costs tied to prevailing risk-free yields, leveraged borrowers face hard interest expenses and liquidation risks, and futures traders absorb premiums embedded via the ...