Bitcoin Praised as Superior Long-Term Investment by Unchained Researcher
Summary:
Joe Burnett, a researcher at financial services firm Unchained, recently asserted that Bitcoin's value lies in its unique "monetary properties," making it a superior asset for long-term investments. Burnett urged investors to focus on Bitcoin's long-term appreciation over its short-term volatility caused by the halving process and advised storing wealth in Bitcoin for years to maximize returns, making sure holdings are secure through the means of collaborative custody. He reaffirmed that bitcoin provides an unparalleled opportunity to transfer modern wealth over time securely.
Just recently, Bitcoin (BTC) has seen its fourth halving completed, and markets are poised, expecting its effects. Still, the significance of BTC is in its distinctive “monetary properties,” according to a researcher from Bitcoin financial services firm Unchained, Joe Burnett. Burnett recently published a report regarding Bitcoin, declaring it as the leading financial tool that can prevent the inevitable decline of your resources in the free market. With Bitcoin's ability to securely transfer "modern wealth over time," Burnett ardently supports investing in Bitcoin for long-term gains.
During a conversation with Cointelegraph, Burnett unpacked his enthusiasm for Bitcoin and why investing in BTC for the long run is rewarding. According to him, at block 840,000, Bitcoin's subsidy automatically reduces from 6.25 to 3.125 BTC due to programmed control. This control limits the input governments, companies, or groups may have over Bitcoin's supply schedule. The highly sought-after monetary property (namely, divisibility, portability, durability, fungibility) along with a highly credible scarcity make Bitcoin the prime choice. The process of halving is just another predictable, unalterable, transparent monetary policy mechanism in Bitcoin's timeline.
Bitcoin ETFs have contributed to the surge in Bitcoin's price, but ETF holders may eventually shift their balance or sell, causing price fluctuations. Burnett advised long-term Bitcoin investors to focus on the asset's long-term appreciation rather than its short-term volatility.
Despite the reluctance of some researchers to discuss prices, data suggest that the Bitcoin price commonly skyrockets ahead of halving. However, its value has dipped more than 10% from its peak during this round. For Burnett, Bitcoin's unprecedented new high before a halving and its tight correlation with conventional markets explain this dip. As global liquidity's barometer, Bitcoin benefits from easing conditions and suffers from tightened ones. In Burnett's opinion, Bitcoin will reap advantages as more fiat money pours into the market.
As to why Burnett staunchly supports Bitcoin, he explained that any wealth kept outside Bitcoin could see a decrease. Gold mines could produce more gold, and real estate entrepreneurs could build more houses if the world's wealth is stored in these assets. On the contrary, Bitcoin remains the only asset that has superior monetary properties and its value doesn't decrease, regardless of the amount of wealth stored in it.
Burnett advised potential Bitcoin investors to view Bitcoin as a long-term investment rather than a fast-track to wealth. He emphasized that holding Bitcoin requires patience to navigate through periods of high volatility and to hold the asset for several years. In regards to whether it is too late to invest in Bitcoin after the halving, Burnett assures it is not, urging potential investors to secure their holdings in the most secure manner possible. Collaborative custody is recommended as it reduces the risk of a single point of failure. The key is not to entrust one institution with all your Bitcoin, as Unchained resolves this issue.
Please note that this article does not advise or recommend investing. Every investment carries risks, so it is vital to conduct your individual research before making any decisions.
Published At
4/23/2024 7:48:31 PM
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