Bitcoin Outperforms Traditional Assets as a Superior Savings Tool, Unchained Research Reveals
Summary:
Unchained, a Bitcoin financial services firm, reveals in a new study that Bitcoin's unique monetary properties, including unchanging scarcity, make it a superior savings tool compared to traditional assets like fiat currencies, stocks, gold, and real estate. The study suggests that traditional assets are succumbing to market challenges created by abundance, hyper-productivity, and intense competition, while stressing the importance of Bitcoin's unchanged scarcity, especially with the impending halving event. The research concludes by urging recognition of Bitcoin's role as a revolutionary tool for savings, trade, and economic calculation.
A new study from Unchained suggests that Bitcoin (BTC) is surfacing as a superior alternative for savings in the present economic era compared to traditional assets. Unchained, a Bitcoin-focused financial services firm, points out that Bitcoin's unique monetary traits, such as unchanging scarcity, make it an ideal solution for the so-called "innovation trap" facing investors. The innovation trap, as defined by Unchained researcher Joe Burnett, occurs when the surplus of goods and services, driven by free-market innovation, leads to lower prices and eventual debasement of certain assets, eroding the ability to save long term. He believes that in an environment marked by extravagance, hyper-productivity, and fierce market competition, it will get increasingly harder to store substantial wealth outside of Bitcoin.
Using a study on the value trend of traditional assets like fiat currency, stocks, gold, and real estate, Unchained argues that an inexorably increasing supply will push all these assets' value towards zero over time. The study also found a diminution in the value of the U.S. dollar and other fiat currencies against essential consumer goods over time. It notes that these currencies are doomed to degrade against commodities that can be manufactured faster and more cost-efficiently, resulting in a significant drop in their value in just the last five years.
According to Burnett, lethargy in value retards their suitability as reliable savings vehicles, driving people to choose other alternatives, such as stocks, gold and silver, and real estate. However, the study indicated that these assets are also losing their worth, evidenced by the 20 year Treasury Bond ETF depreciating by over 94.8% in the last five years. Increased competition and equity dilution significantly risk stock investments.
The research further reveals a decline in the S&P 500 index by 87.6% over the same five-year period. Burnett also notes that precious metals like gold and silver are not spared the negative effects of advanced production technologies and competition.
The study shows a surge in annual gold production levels from less than 100 tonnes in the 19th century to charging past 1,000 tonnes in the 1950s, with current figures exceeding 2,800 tonnes per year. These increases have been influenced considerably by technological advancements in mining and processing, which continually depreciate the savings of gold holders.
Burnett's earlier views that Bitcoin, due to its "immutable absolute scarcity", surpasses others as a superior monetary tool, are echoed in the study findings. The report successfully highlights Bitcoin's superior monetary attributes over other asset categories, insisting that it's both rational and wise to consider traditional wealth stores in terms of this superior asset.
Bitcoin's unchanged scarcity forms the basis for its value as a savings instrument. The significance of this attribute is set to increase after the next Bitcoin halving, anticipated in just four days, set to halve issuance from 6.25 BTC to 3.125 BTC per mined block.
Michael Saylor, an outspoken Bitcoin bull and advocate, shares the perspective on Bitcoin's superiority over other asset classes. In Bob's conclusion, he states that the advent of Bitcoin 15 years back as a unique tool for savings, trade, and economic calculation resulted in a novel economic reality that can't be ignored without severe consequences.
This article is not a source of investment advice or recommendations. All investment and trading moves carry risks, and readers should pursue their own research before making any decisions.
Published At
4/15/2024 6:01:16 PM
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