Bitcoin (BTC) has emerged as the most effective tool for saving in the current economic era, surpassing traditional assets, according to a new research report from Unchained. The report reveals that Bitcoin’s unique monetary properties, such as immutable scarcity, position it as the solution to the “innovation trap” that investors often face. Unchained researcher Joe Burnett explains this trap as a situation where innovation-driven market forces lead to an oversupply of certain goods and services, resulting in low prices and the devaluation of assets. This erosion of long-term savings can be avoided by investing in Bitcoin.
The report highlights the vulnerability of traditional assets, including fiat currency, stocks, gold, and real estate, to increasing supply, which ultimately leads to a decrease in their value over time. For instance, holding the United States dollar or other fiat currencies will result in a reduction in their value against essential consumer goods. These currencies are designed to devalue against goods and services that can be produced faster and at a lower cost. As a result, more people are turning to alternative assets like stocks, precious metals, and real estate to protect their savings. However, the report reveals that even these assets are experiencing a decline in value, with the 20-year Treasury Bond ETF down by over 94.8% in the last five years. Stock investors face risks stemming from fierce competition and equity dilution, leading to a decrease in the value of existing shares. The S&P 500 index, for example, has dropped by 87.6% in the last five years. Even gold and silver are not immune to the effects of increased production capabilities and competition.
The research emphasizes that Bitcoin represents a new economic reality due to its superior monetary properties. Burnett previously argued that Bitcoin is an exceptional monetary tool because its supply cannot be increased, thanks to its immutable absolute scarcity. The report demonstrates how Bitcoin outperforms other asset classes and suggests that it is prudent to measure traditional stores of wealth in terms of Bitcoin. Immutable scarcity is a key aspect of Bitcoin’s value proposition as a savings tool, and this characteristic will become even more significant after the upcoming Bitcoin halving, which will reduce the issuance from 6.25 BTC to 3.125 BTC per mined block.
Renowned Bitcoin advocate Michael Saylor also believes that BTC is superior to other asset classes. Burnett concludes by stating that Bitcoin’s discovery 15 years ago as a novel tool for savings, trade, and economic calculation has created a new economic reality that cannot be ignored. It is important to note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any investment or trading decisions.