Bitcoin

<h2 id="key-points">Key Points</h2>
<ul>
 <li>Bitcoin (BTC) is positioned as the best tool for savings in the current economic era, according to a report by Unchained.</li>
 <li>Traditional assets, including fiat currency, stocks, gold, and real estate, are all vulnerable to increasing supply and decreasing in value over time.</li>
</ul>
<p>Unchained, a financial services firm specializing in Bitcoin, recently published a report stating that Bitcoin’s unique monetary properties, particularly its immutable scarcity, make it the most effective savings tool in the modern economic landscape. The report describes an “innovation trap” where market forces, driven by innovation, lead to an oversupply of goods and services, resulting in low prices and the eventual devaluation of these assets. This phenomenon, according to Unchained researcher Joe Burnett, undermines long-term savings.</p>
<h2 id="traditional-assets-losing-value">Traditional Assets Losing Value</h2>
<p>Unchained’s research found that traditional assets such as fiat currency, stocks, gold, and real estate are all susceptible to an increase in supply, causing their value to trend towards zero over time. For example, the U.S. dollar and other fiat currencies were found to decrease in value against basic consumer goods over time. The report stated that these currencies are designed to devalue against goods and services that can be produced more quickly and cheaply.</p>
<p>In response to this, many people attempt to hold their savings in other assets like stocks, precious metals, and real estate. However, these assets are also losing value. For instance, the 20-year Treasury Bond ETF has declined by more than 94.8% over the last five years. Furthermore, stock investors face risks due to intense competition and equity dilution.</p>
<h2 id="bitcoin-a-superior-savings-tool">Bitcoin: A Superior Savings Tool</h2>
<p>The report aligns with Burnett’s earlier views that Bitcoin, due to its “immutable absolute scarcity,” is one of the best monetary tools available. He compared Bitcoin’s monetary properties to other asset classes and stated that it’s prudent to view traditional wealth stores in terms of this superior asset.</p>
<p>Bitcoin’s immutable scarcity is central to its value proposition as a savings tool. This characteristic will become even more significant after the next Bitcoin halving, which will reduce issuance from 6.25 BTC to 3.125 BTC per mined block.</p>
<p>Bitcoin advocate Michael Saylor also agrees with the notion that BTC is superior to other asset classes. Burnett concluded by emphasizing that Bitcoin’s emergence 15 years ago as a unique tool for savings, trade, and economic calculation has created a new economic reality that should not be overlooked. He warned that those who continue to save in inferior assets at high valuations risk being outcompeted by those who adopt Bitcoin.</p>

Protect Your Wealth from Melting: Invest in Bitcoin, Urges Unchained Report

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Інші статті, опубліковані 15 квіт. 2024 р.

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