Luke Gromen Exposes ’Western Privilege’ in Bitcoin Yield Critiques

Bitcoin's yield critics just got called out for their blind spots—and the analysis cuts deep into Western financial arrogance.

The Privilege Problem

Luke Gromen's latest takedown doesn't mince words: dismissing Bitcoin's yield potential reeks of developed-world bias. While Wall Street obsesses over quarterly returns, entire economies elsewhere are leveraging crypto to bypass broken traditional systems.

Numbers Don't Lie—But Narratives Do

Western analysts keep parroting the 'no yield' mantra—ignoring how Bitcoin provides something far more valuable in unstable regions: financial sovereignty. No central bank approval needed. No waiting for wire transfers that never arrive.

The Global Reality Check

For populations facing hyperinflation or capital controls, Bitcoin's 'yield' comes from preservation of wealth—not percentage points on a brokerage statement. It's the ultimate hedge against monetary failure—something comfortably funded pensions won't understand.

Finance's favorite pastime? Critiquing alternatives to the very system that pays their bonuses. Bitcoin keeps working anyway.

Bitcoin’s value as a store of value

Gromen, speaking on the Coin Stories podcast with Natalie Brunell, argued that the absence of yield is what makes bitcoin a safer store of value. He stated:

“If you’re earning a yield, you are taking a risk. Anyone who says that is showing their Western financial privilege.”

He referenced the collapse of FTX in November 2022 as a case where promised yield led to significant losses, highlighting that yield is always tied to risk.

Gromen also explained that bank deposits earn yield because depositors are taking on risk, and that money held in banks is, in reality, owned by the bank, not the depositor.

Yield debate: Bitcoin versus Ether

The discussion comes amid ongoing comparisons between Bitcoin and Ether, with some investors viewing Ethereum’s proof-of-stake model—and its staking rewards—as more attractive for traditional portfolios.

Ether holders can earn rewards for staking, similar to how banks pay interest for deposits.

As of now, publicly listed treasury companies hold about 4.13% of all ETH, valued at roughly $23 billion.

Bitcoin’s appeal to investors

While Bitcoin is not designed for yield, it remains a preferred store of value and hedge against inflation and government control.

Public Bitcoin treasuries currently hold approximately $119.65 billion.

Despite the lack of native staking, some platforms allow users to earn yield on their bitcoin through centralized lending or tokenized products, though these carry additional risks.

Yield comes with risk

Gromen’s comments underscore that the pursuit of yield—whether through banks, staking, or lending platforms—always involves risk, reinforcing Bitcoin’s appeal as a non-yielding, risk-off asset in uncertain economic times.