Is Bitcoin Part of Asset Allocation? LFG Daily - December 16, 2025
- Luke Lloyd
- Dec 16, 2025
- 5 min read
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Luke Lloyd, CEO Lloyd Financial Group
By now, everyone knows the headline.
“Bitcoin creates millionaires.”“Bitcoin changed my life.”“Bitcoin was the best investment of the last decade.”
And yes — that’s all true. A lot of money has been made. A lot of wealth has been created. Bitcoin didn’t just outperform most assets over the past 10–15 years — it embarrassed them.
But here’s where most people get it wrong.
The real financial planning question isn’t whether Bitcoin was a great investment.
The question is whether it will outperform the S&P 500 over the next 20 years.
Because if it does, then the conversation changes entirely.
Why Bitcoin Created So Much Wealth in the First Place
Bitcoin didn’t make millionaires because it was “cool” or because people finally understood blockchain.
It made millionaires because:
It was scarce (a fixed supply in a world of unlimited money printing)
It was early (most people ignored it when it mattered)
It was outside the system (no central bank, no government control)
And it benefited from exponential adoption
That’s how real wealth is created. Not by chasing headlines — but by owning something before it becomes obvious.
Early adopters weren’t smarter. They were simply willing to be uncomfortable when everyone else dismissed it.
The Only Question That Matters Going Forward
From a financial planning standpoint, this isn’t about whether Bitcoin goes up or down next year.
It’s about this:
Does Bitcoin outperform the S&P 500 over the next two decades?
If the answer is no, then Bitcoin becomes an interesting side asset.If the answer is yes, then Bitcoin becomes a structural part of long-term wealth building.
And I believe the odds favor Bitcoin — not because it’s perfect, but because of wealth separation.
Wealth Separation Is the Real Story
We’re living in a time where wealth is increasingly split into two groups:
Those who own appreciating assets
Those who rely solely on income and cash
That gap is widening.
Stocks, real estate, private businesses, and alternative assets have surged ahead — while wages struggle to keep up with inflation, taxes, and cost of living.
Bitcoin fits directly into this dynamic.
It’s not just a speculative asset. It’s a response to:
Currency debasement
Growing government debt
Lack of trust in institutions
And a system that rewards asset owners over savers
In other words, Bitcoin isn’t competing with the S&P 500 the way people think.
It’s competing as an alternative store of wealth in a world where owning nothing is becoming more expensive every year.
Why Bitcoin Could Outperform the S&P 500
The S&P 500 is phenomenal. It represents innovation, productivity, and capitalism at its best.
But it’s also:
Fully institutionalized
Heavily owned
Dependent on earnings growth, margins, and policy stability
Bitcoin, by contrast, is still:
Early in global adoption
Underowned by institutions and households
Limited in supply
Borderless and permissionless
If wealth continues to separate — and history suggests it will — assets that sit outside traditional systems often benefit disproportionately.
That doesn’t mean Bitcoin replaces stocks.It means Bitcoin coexists as a different kind of long-term bet.
This Is Where Financial Planning Actually Matters
Here’s the mistake people make:
They either go all in, or they ignore it completely.
Neither approach is planning.
Real financial planning asks:
How does Bitcoin fit into your balance sheet?
What percentage makes sense relative to risk tolerance?
How does it interact with taxes, retirement accounts, and time horizon?
What happens if it underperforms?
What happens if it dramatically outperforms?
Bitcoin isn’t about being right on Twitter.It’s about positioning intelligently in a changing world.
The money has already been made in Bitcoin — and the next chapter may still be ahead.
The real divide won’t be between people who “believed” in Bitcoin and those who didn’t.
It will be between people who understood wealth separation early enough to own appreciating assets — and those who stayed on the sidelines waiting for certainty.
In markets, certainty is usually the most expensive thing you can buy.
And good financial planning isn’t about predictions.
It’s about preparation.
Don’t leave your financial future up to chance. Let’s build a plan that gives you confidence today and peace of mind for tomorrow. Click here to schedule a meeting — I’m here to help you take the next step toward financial freedom.
Colin Symons, CIO Lloyd Financial Group
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World PMIs saw India look good but Europe weak.
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What does it all mean?
Little news of consequence as we heal from AI trauma but data this morning may move markets.
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