Bitcoin (BTC) has emerged as the ultimate solution for saving in the new economic era, surpassing traditional assets, according to a research report by Unchained. The report highlights Bitcoin’s superior monetary properties, such as immutable scarcity, which position it as the best option for investors trapped in the cycle of innovation. Unchained researcher Joe Burnett explains the innovation trap as a situation where the increased supply of goods and services leads to low prices and the devaluation of assets over time, making long-term savings challenging. However, Unchained’s findings reveal that Bitcoin avoids this trap, making it the ideal store of wealth.
Unchained’s research examines the value of various traditional assets, including fiat currency, stocks, gold, and real estate, and concludes that they are all susceptible to increasing supply, causing their value to decline over time. The report emphasizes that holding fiat currencies, like the US dollar, results in a reduction in value compared to consumer goods. These currencies are designed to debase against goods and services that can be produced faster and cheaper, such as shelter, food, and energy.
Burnett notes that as more people recognize the limitations of fiat currency as a savings vehicle, they turn to other assets such as stocks, precious metals, and real estate. However, the research reveals that these assets also diminish in value. For example, the 20-year Treasury Bond ETF has decreased by over 94.8% in the last five years, and the S&P 500 index is down 87.6% over the same period. Even gold and silver are not immune to the effects of increased production capabilities and competition.
In contrast, Bitcoin is hailed as the new economic reality due to its immutable scarcity. The report emphasizes that Bitcoin’s scarcity is absolute and cannot be manipulated through printing more currency. Burnett argues that it is not only reasonable but also prudent to measure traditional storeholds of wealth in terms of Bitcoin. This characteristic will become even more significant after the upcoming Bitcoin halving, which is expected to reduce issuance and further enhance scarcity.
Renowned Bitcoin advocate Michael Saylor also believes that BTC surpasses other asset classes. Burnett concludes by stating that Bitcoin’s discovery as a novel tool for savings, trade, and economic calculation 15 years ago has created a new economic reality that should not be ignored. However, readers are advised to conduct their own research and exercise caution when making investment decisions.