Criticizing Bitcoin’s non-yielding nature reflects “Western financial privilege”
The ongoing debate between Bitcoin and Ethereum as long-term investment assets continues to divide traditional and crypto-native investors. While Ethereum’s proof-of-stake model allows holders to earn staking rewards, macro analyst Luke Gromen argues that Bitcoin’s lack of native yield is a feature, not a flaw.
Yield means risk
Speaking on the Coin Stories podcast, Gromen pushed back against critics who dismiss Bitcoin because it doesn’t generate yield. “If you’re earning a yield, you are taking a risk,” he said. He described yield-chasing behavior as a form of “Western financial privilege,” noting that many people outside developed economies prioritize safety and sovereignty over returns.
He pointed to the collapse of FTX in 2022 as a cautionary tale: “Staking on FTX, you were getting a yield — how did that go?” Gromen said. He added that even traditional banking is risk-based: “Your money in the bank earns a deposit yield because you are taking risk. Everyone thinks that’s their money in the bank. It’s not — it’s the banks’.”
Ethereum’s staking advantage
Ethereum supporters argue that the network’s proof-of-stake consensus makes it more attractive to institutional investors. By locking ETH, stakers earn rewards while securing the blockchain, similar to how banks pay interest to attract deposits.
Nassar Achkar, chief strategy officer at CoinW exchange, recently highlighted growing institutional allocation to ETH due to its yield and tokenization role. According to StrategicETHReserve, publicly listed companies now hold about 4.13% of Ethereum’s supply, worth more than $23 billion.
The case for Bitcoin as “digital gold”
Despite lacking native yield, Bitcoin continues to attract institutions and treasuries as a store of value. It is widely seen as protection against inflation, government overreach, and global economic instability. Public companies collectively hold over $119 billion in Bitcoin, according to BitcoinTreasuries.NET.
While Bitcoin does not offer staking, yield opportunities exist through centralized lending platforms, Wrapped Bitcoin (WBTC) on Ethereum, and emerging networks like Babylon and Stacks.
The debate between Bitcoin and Ethereum highlights two different value propositions: Bitcoin as hard money and digital gold versus Ethereum as a yield-generating, programmable asset. As Gromen stresses, yield is never free — it always comes with risk. For many investors worldwide, Bitcoin’s simplicity as a non-yielding, incorruptible store of value may be its greatest strength.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.