Bitcoin: the Ultimate Savings Tool

According to a new report, Bitcoin’s unique attributes position it ahead of traditional savings instruments. Joe Burnett, researcher at Unchained, explained that the upcoming Bitcoin halving, which will reduce the block reward from 6.25 BTC to 3.125 BTC, is set to cement Bitcoin’s role as a prime savings medium.

Burnett described the modern economic environment as an “innovation trap.” Here, rapid technological advancements and market competition lead to an oversupply of goods and services, ultimately causing asset values to plummet.

He argued that in such a scenario, storing significant wealth outside of Bitcoin will be “increasingly difficult” due to the debasement of traditional assets.

“Bitcoin may be the asset class that increasingly captures a significant share of total global wealth, all at a time when global wealth is rapidly increasing due to the relentless acceleration of innovation. In a world of abundance, hyper-productivity, and intensely competitive markets, storing significant wealth outside of Bitcoin will be increasingly difficult,” Burnett said.

The researcher also highlighted that traditional assets, including fiat currencies, stocks, and real estate, are susceptible to value erosion over time. For instance, the US dollar has depreciated significantly, down 92.8% over the last five years when measured against basic consumer goods.