Bitcoin (BTC) recently underwent its fourth halving, and market participants are eagerly awaiting its impact. However, the true value of BTC lies in its distinct “monetary properties,” according to Joe Burnett, a researcher at Unchained, a Bitcoin financial services company that offers value-collaborative custody for BTC. Burnett’s recent research reveals that Bitcoin is the ultimate savings tool that can protect wealth from the perils of the free market. He believes Bitcoin is an exceptional asset that allows for the transfer of modern wealth through time without any leakage.
In an interview with Cointelegraph, Burnett explains why he is a vocal Bitcoin bull and why investing in BTC for the long term is beneficial.
CT: The average person who is not familiar with cryptocurrencies may find discussions about the halving confusing. What is the most important thing retail investors should understand about the Bitcoin halving?
JB: At block 840,000, the Bitcoin block subsidy is programmatically reduced from 6.25 to 3.125 BTC. Bitcoin’s supply schedule cannot be altered by any government, company, or group of people. If you attempt to change the rules, you will create a new network through a fork. Bitcoin is the best form of money because it possesses the most superior monetary properties (portable, durable, divisible, fungible) and has the most credible scarcity limit.
The halving is simply another link in the chain that confirms a predictable, immutable, and transparent monetary policy.
CT: ETFs have been credited with boosting Bitcoin prices, but eventually, ETF holders will rebalance or become sellers, potentially impacting Bitcoin’s direction. Given Unchained’s focus, what conversations are you having with investors regarding Bitcoin’s price volatility?
JB: Unchained is designed to provide financial services for long-term Bitcoin holders. When it comes to Bitcoin, it is wise to hold it for extended periods rather than short ones. Allocate capital that you intend to save for years to Bitcoin. This allows you to ignore short-term volatility and focus solely on long-term capital appreciation.
CT: Many analysts and researchers shy away from discussing price, but it is a topic of interest. Data shows that Bitcoin’s price experiences a surge before the halving, yet we are currently more than 10% below the all-time high. What are your thoughts on the left-translated cycle theory, and why did Bitcoin’s price sharply decline before the halving?
JB: This is the first cycle where Bitcoin reached a new all-time high before a halving.
The spot Bitcoin ETFs may have played a crucial role in the price increase leading up to the halving, but it is likely that the approximately 18 months after the halving will also be positive. In my opinion, the decline in BTC price is a result of the broader market sell-off. The S&P 500 is also experiencing a downturn.
Bitcoin serves as an indicator of global liquidity. If macro conditions tighten, Bitcoin will suffer. If conditions ease, Bitcoin will benefit. In the long run, more dollars will be created, and Bitcoin is the fastest means to preserve wealth.
CT: Why are you such a Bitcoin bull? You recently stated that investors are witnessing their wealth “melt away” due to various factors.
JB: Any wealth stored outside of Bitcoin can be devalued. If the world holds $15 trillion worth of wealth in gold, entrepreneurs will find ways to mine more gold. If the world holds $300 trillion worth of wealth in real estate, entrepreneurs will find ways to construct more houses.
Bitcoin is the only asset with the most superior monetary properties that does not erode, regardless of the amount of wealth stored in it. Until now, we lacked a suitable asset to transfer our modern wealth through time without any loss.
CT: What is the main psychological hurdle that potential investors at Unchained need to overcome before allocating funds to Bitcoin?
JB: Individuals and businesses considering saving Bitcoin in their treasury should understand that Bitcoin is a long-term investment, not a get-rich-quick scheme. If you choose to hold Bitcoin, be prepared to hold it for multiple years and expect significant volatility.
CT: The halving is over, and Bitcoin has gained 58% this year. Do you think it is too late for investors to enter the BTC market?
JB: If the halving has sparked your interest in Bitcoin and you have started accumulating it, ensure that you are holding it in the most secure manner possible. Collaborative custody is the best way to hold Bitcoin because it eliminates a single point of failure. Do not trust institutions like Mt. Gox, FTX, Coinbase, or BlackRock to safeguard your entire Bitcoin holdings. A single institution should not have the ability to lose your coins. Unchained addresses this issue!
This article does not offer investment advice or recommendations. Every investment and trading decision involves risk, and readers should conduct their own research before making any decisions.