Macro analyst Luke Gromen argues that Bitcoin’s lack of native yield isn’t a drawback—it’s what makes it a safer store of value.
“Earning a yield always involves taking on risk,” Gromen told Natalie Brunell on the Coin Stories podcast Wednesday, addressing critics who dismiss Bitcoin in favor of yield-generating assets.
“Anyone who complains about that is showing their Western financial privilege,” he added.
Gromen cited the collapse of crypto exchange FTX in November 2022 as an example. “Remember staking on FTX for yield? How did that work out?” he said.
“Your money in the bank earns interest because, in a capitalist system, taking on risk comes with a reward,” he said. “People think it’s their money sitting safely in the bank—but really, it’s the bank’s money,” he added.
Ether’s Proof-of-Stake Model Draws Interest
The debate between Bitcoin and Ether often centers on yield. Ether advocates argue that Ethereum’s proof-of-stake system—which allows users to earn staking rewards—makes it more appealing to traditional investors compared to Bitcoin.
Much like banks pay interest to attract deposits and boost lending, ETH holders earn rewards for staking, which helps activate and secure network validators.
Nassar Achkar, chief strategy officer at CoinW crypto exchange, noted that institutional investors are increasingly allocating treasury assets to ETH because of its staking potential and role in tokenization ecosystems. Publicly listed ETH treasury companies now hold roughly 4.13% of the total supply, valued at about $23.01 billion at the time of publication, according to StrategicETHReserve.
The Case for Bitcoin
Although Bitcoin isn’t bought for yield, it still offers significant advantages for investors. It is widely regarded as a hedge against inflation, government control, and economic instability, earning its nickname as “digital gold.”
Public Bitcoin treasuries currently hold around $119.65 billion, according to BitcoinTreasuries.NET. While Bitcoin doesn’t provide native staking, holders can still earn yield through centralized lending platforms, Wrapped Bitcoin on Ethereum, and Bitcoin-related networks like Babylon and Stacks.
