Key Points
- Bitcoin (BTC) has undergone its fourth halving, with its value rooted in its unique monetary properties.
- Bitcoin is considered the best savings tool to protect wealth from market fluctuations, according to a researcher at Unchained.
Bitcoin, a leading cryptocurrency, has recently completed its fourth halving event. Market participants are now keenly observing its aftermath.
However, the true value of Bitcoin does not solely rest on such events. The cryptocurrency’s distinctive monetary attributes are what truly set it apart.
Bitcoin’s Unique Monetary Properties
Joe Burnett, a researcher at Unchained, a financial services company specializing in Bitcoin, has highlighted these unique monetary properties of Bitcoin.
Unchained offers value-collaborative custody for Bitcoin to individuals and businesses alike.
Burnett’s recent research findings suggest that Bitcoin is the best tool for savings as it can protect wealth from the free market’s inevitable fluctuations.
He argues that Bitcoin is a superior asset that allows the transfer of modern wealth over time without any losses.
Understanding Bitcoin Halving
Burnett explains that Bitcoin halving, a complex concept for the average investor, is a key event in Bitcoin’s lifecycle.
At block 840,000, the Bitcoin block subsidy programmatically drops from 6.25 to 3.125 BTC. This process is immune to any interference from governments, companies, or groups of people.
Burnett believes that Bitcoin’s monetary properties (portability, durability, divisibility, fungibility) and its credibly scarce supply limit make it the best form of money.
The halving is just another block in the chain that reinforces Bitcoin’s predictable, immutable, and transparent monetary policy.
Bitcoin’s Price Volatility
While Bitcoin’s price volatility is a concern for some, Unchained focuses on long-term Bitcoin holders.
Burnett suggests that Bitcoin should not be held for short periods. Instead, investors should allocate capital that they intend to save for years to Bitcoin.
This approach allows investors to ignore short-term volatility and focus solely on long-term capital appreciation.
Bitcoin’s Value Over Time
Despite the recent sell-off ahead of the halving, Burnett believes that the approximately 18 months following the halving will likely be positive for Bitcoin.
In his view, Bitcoin is a gauge for global liquidity. If macro conditions are tightening, Bitcoin may suffer. However, if conditions are easing, Bitcoin will likely benefit.
In the long run, as more dollars are created, Bitcoin is expected to emerge as the fastest horse.
Bitcoin As A Long-Term Investment
Burnett emphasizes that Bitcoin is a long-term saving, not a get-rich-quick scheme.
Potential investors should be prepared to hold Bitcoin for multiple years and expect extreme volatility.
Even after the halving, Burnett believes it’s not too late for investors to position in Bitcoin.
He advises those who have begun to accumulate Bitcoin to ensure they’re holding it in the most secure way possible.
Collaborative custody is considered the best way to hold Bitcoin as it eliminates a single point of failure.
A single institution should not be trusted with all of your Bitcoin. Unchained aims to solve this problem!
