The latest research report from Unchained Capital, a Bitcoin financial services firm, asserts that Bitcoin emerges as the superior solution for saving in the current economic landscape compared to traditional assets.
Unchained’s findings highlight Bitcoin’s exceptional monetary properties, particularly its immutable scarcity, which position it as the optimal choice for navigating the challenges posed by what they term the “innovation trap.”
“In a world of abundance, hyper-productivity, and intensely competitive markets, storing significant wealth outside of Bitcoin will be increasingly difficult,” says the report.
Unchained Capital: Current Economy and Bitcoin
According to Unchained researcher Joe Burnett, the “innovation trap” is characterized by free market dynamics leading to an oversupply of goods and services, resulting in diminished asset value over time and undermining long-term savings efforts.
Burnett argues that in a world of abundance and intense competition, preserving significant wealth outside of Bitcoin will become increasingly challenging, ultimately leading to a shift where most wealth resides in Bitcoin. Unchained’s research delves into the vulnerabilities of various traditional assets, such as fiat currency, stocks, gold, and real estate, all of which are susceptible to supply increases that erode their value over time.
For instance, holding fiat currencies like the United States dollar exposes investors to continual devaluation against essential consumer goods due to their inherent tendency to depreciate.
“The U.S. dollar is down 92.8% over the last 5 years,” read the analysis.
Diminishing Value of Traditional Assets
Unchained’s findings also reveal the diminishing value of assets like Treasury bonds, stocks, gold, and silver over recent years, with the erosion of wealth attributed to factors like fierce competition, equity dilution, and increased production capabilities.
The report reads:
“The potential circulating supply of gold has no serious limit, and gold holders will have their savings endlessly devalued as humanity becomes more productive at mining and extracting gold.”
In contrast, Bitcoin stands out as a superior savings tool due to its immutable scarcity, a feature that ensures its value preservation over time. Burnett emphasizes Bitcoin’s role as a novel store of wealth, trade, and economic calculation, creating a new economic reality that cannot be ignored.
With Bitcoin’s forthcoming halving event expected to further solidify its scarcity, investors are urged to consider reallocating their savings into bitcoin to avoid being outcompeted by economic rivals who adopt this superior asset.
Bitcoin is a Digital Property
Michael Saylor, the former chief executive officer of MicroStrategy, the largest corporate holder of bitcoin, previously stated that Bitcoin is superior to other forms of investment and is a digital property.
Saylor believes that Bitcoin is “superior to other investments such as Gold, Equity, or Real Estate because it is digital, available, global, ethical, & useful to millions of companies and billions of people.”
Additionally, it is predicted that there will be a significant surge in demand for bitcoin, leading to a tenfold increase in the digital asset’s price by the end of 2024.
Burnett concluded his report by stating that Bitcoin is an innovative form of investment, and ignoring it while continuing to promote inferior assets at higher valuations will never benefit the investor.
