Bitcoin (BTC) price has done well this year, defying earlier predictions that it would collapse in a high interest rate environment. The coin has jumped by more than 100%, outperforming the Nasdaq 100, gold, and other assets.

Most importantly, Bitcoin is beating government bonds. The 10-year yield jumped to 5% on Monday, the highest level since 2007. Similarly, the 30-year Treasury yield spiked to over 5.10%.

BTV vs Treasuries chart by TradingView

Bitcoin price is still much lower than its all-time high of $67,000. However, despite this crash, the coin has emerged as one of the best-performing assets in the world. It has already surged by more than 35 million percent since its inception. 

There are several reasons why Bitcoin makes sense as an investment. First, BTC has been a survivor over the years. It thrived after the collapse of Mt.Gox in 2014. At the time, many bears believed that the coin would not survive.

Further, it has survived other black swan events like the collapse of Terra and FTX. These implosions alone led to over $50 billion in losses to investors. Additionally, Bitcoin survived the Covid-19 pandemic and is doing well in this period of high-interest rates.

A few years ago, it would be incomprehensible to imagine Bitcoin trading at $30,000 in a period of high rates. Rates have surged from zero, where they stayed after the Global Financial Crisis (GFC) to 5.50%, the highest point in more than two decades.

Therefore, these events mean that Bitcoin is not necessarily different from other assets like stocks and gold. For one, stocks also crashed when rates started rising in 2022 and are now attempting to bounce back.

There’s another case to make. For one, unlike government bonds, Bitcoin has a limited supply of 21 million coins. 19.5 million of these have already been mined while next year’s halving will make mining more difficult. Therefore, it makes sense to invest in a finite asset that has done well over the years.