kunaon Bitcoin Is The Ultimate Wealth Preservation Technology

By Bitcoin Majalah - 1 year ago - Waktos maca: 13 menit
Jum, 16 Désémber 2022 1:12

kunaon Bitcoin Is The Ultimate Wealth Preservation Technology

Bitcoin provides the ultimate form of transferable value because it preserves the encapsulated wealth.

This is an opinion editorial by Leon Wankum, one of the first financial economics students to write a thesis about Bitcoin di 2015.

Evolutionary psychologists believe that the ability to "preserve wealth" gave modern humans the decisive edge in evolutionary competition with other humans. Nick Szabo wrote an interesting anecdote about how in his essay “Shelling Out: Asal Usul Duit.” Nalika homosapiens lunta homo neanderthalensis in Europe circa 40,000 to 35,000 B.C., population explosions followed. It's difficult to explain why, because the newcomers, homosapiens, had the same size brain, weaker bones and smaller muscles than the neanderthals. The biggest difference may have been wealth transfers made more effective or even possible by collectibles. Evidence shows homosapiens sapiens took pleasure in collecting shells, making jewelry out of them, showing them off and trading them.

It follows that the capability to preserve wealth is one of the foundations of human civilization. Historically, there have been a variety of wealth preservation technologies that have constantly changed and adapted to the technological possibilities of the time. All wealth preservation technologies serve a specific function: storing value. Chief among the early forms is handmade jewelry. Below I will compare the four most commonly used wealth preservation technologies today (gold, bonds, real estate and equities) to bitcoin to show why they underperform and how efficiently bitcoin can help us save and plan for our future. For equities, I focus specifically on ETFs as equity instruments used as a means of long-term savings.

Naon Ngajadikeun Toko Alus Nilai?

Salaku dijelaskeun ku Vijay Bojapati, when stores of value compete against each other, it is the unique attributes that make a good store of value that allows one to out-compete another. The characteristics of a good store of value are considered to be durability, portability, fungibility, divisibility and especially scarcity. These properties determine what is used as a store of value. Jewelry, for example, may be scarce, but it's easily destroyed, not divisible, and certainly not fungible. Emas minuhan sipat ieu langkung saé. Gold has over time replaced jewelry as humankind's preferred technology for wealth preservation, serving as the most effective store of value for 5,000 years. However, since the introduction of Bitcoin in 2009, gold has faced digital disruption. Digitization optimizes almost all value-storing functions. Bitcoin serves not only as a store of value, but also as an inherently digital money, ultimately defeating gold in the digital age.

Bitcoin Versus Gold

durability: Emas mangrupikeun raja anu teu tiasa diperdebatkeun tina durability. Most of the gold that has been mined remains extant today. Bitcoin are digital records. Thus it is not their physical manifestation whose durability should be considered, but the durability of the institution that issues them. Bitcoin, having no issuing authority, may be considered durable so long as the network that secures them remains intact. It is too early to draw conclusions about its durability. However, there are signs that, despite instances of nation-states attempting to regulate Bitcoin and years of attacks, the network has continued to function, displaying a remarkable degree of “anti fragility”. Nyatana, éta mangrupikeun salah sahiji jaringan komputer anu paling dipercaya kantos, kalayan ampir 99.99% waktos uptime.

Portability: Bitcoin's portability is far superior to that of gold, as information can move at the speed of light (thanks to telecommunication). Gold has lost its appeal in the digital age. You can't send gold over the internet. Online gold portability simply doesn't exist. For decades, the inability to digitise gold created problems in our monetary system, historically based on gold. With the digitization of money, over time it was no longer comprehensible whether national currencies were actually backed by gold or not. Also, it is difficult to transport gold across borders because of its weight, which has created problems for globalised trade. Due to gold's weakness in terms of portability, our current fiat-based monetary system exists. Bitcoin is a solution to this problem as it is a native digital scarce commodity that is easily transportable.

Storing Gold Versus Storing Bitcoin

Divisibilitas: Bitcoin is purely digital, so its divisibility is much better compared to gold. Information can be subdivided and recombined almost infinitely at almost zero cost (like numbers). A bitcoin can be divided into 100,000,000 units called satoshi. Gold on the other hand is difficult to divide. It requires special tools and carries the risk of losing gold in the process, even if it's just dust.

Fungsibilitas: Gold can be distinguished for example by an engraved logo, but can be melted down and is then fully fungible. With bitcoin, fungibility is “tricky”. Bitcoin is digital information, which nyaéta zat anu paling obyektif dibédakeun di jagat raya (sapertos kecap tulisan). However, since all bitcoin transactions are transparent, governments could ban the use of bitcoin that has been used for activities deemed illegal. Which would negatively impact bitcoin's fungibility and its use as a medium of exchange, because when money is not fungible, each unit of the money has a different value and the money has lost its medium of exchange property. This does not affect bitcoin's store-of-value function, but rather its acceptance as money, which can negatively impact its price. Gold's fungibility is superior to bitcoins, but gold's portability disadvantages make it useless as a medium of exchange or a digital store of value.

Kalangkungan: Emas kawilang langka, kalayan tingkat inflasi taunan 1.5%. Sanajan kitu, suplai teu capped. Aya salawasna pamanggihan anyar emas jeung aya kamungkinan yén urang bakal datang di sakuliah deposit badag dina spasi. Gold's price is not perfectly inelastic. When gold prices rise, there is an incentive to mine gold more intensively, which can increase supply. In addition, ​​physical gold can be diluted with less precious metals, which is difficult to check. Furthermore, gold held in online accounts via ETCs or other products often has multiple uses, which is also difficult to control and negatively impacts the price by artificially increasing supply. The supply of bitcoin, on the other hand, is hard-capped, there will never be more than 21,000,000. It is designed to be disinflationary, meaning there will be less of it over time.

Bitcoin's annual inflation rate is currently 1.75% and will continue to decrease. Bitcoin mining rewards are halved roughly every 4 years, according to the protocol’s code. In 10 years, its inflation rate will be negligible. The last bitcoin will be mined in 2140. After that, the annual inflation rate of bitcoin bakal nol.

Auditability: Ieu lain proposisi jual unik pikeun toko nilai, tapi masih penting sabab nyadiakeun informasi ngeunaan naha toko nilai cocog pikeun sistem finansial adil jeung transparan.

Bitcoin is perfectly audible to the smallest unit. No one knows how much gold exists in the world and no one knows how much US dollars exist in the world. As pointed out to me by Sam Abbassi, bitcoin is the first perfectly, publicly, globally, auditable asset. This prevents rehypothecation risk, a practice whereby banks and brokers use assets posted as collateral by their clients for their own purposes. This takes an enormous amount of risk out of the financial system. It allows for proof of reserves, where a financial institution must provide their bitcoin address or transaction history in order to show their reserves.

Bitcoin Versus Bonds

In 1949 Benjamin Graham, a British-born American economist, professor and investor, published „The Intelligent Investor“, which is considered one of the founding books of value investing and a classic of financial literature. One of his tenets is that a "balanced portfolio" should consist of 60% stocks and 40% bonds, as he believed bonds protect investors from significant risk in the stock markets.

Sanaos seueur anu dijelaskeun ku Graham harita masih asup akal ayeuna, kuring ngabantah yén beungkeut, khususna beungkeut pamaréntah, parantos kaleungitan tempatna salaku pager hirup dina portofolio. Ngahasilkeun beungkeut teu bisa nuturkeun inflasi moneter jeung sistem moneter urang, nu beungkeut mangrupa bagian, sacara sistematis dina resiko.

Ieu kusabab kaséhatan kauangan seueur pamaréntahan anu ngabentuk jantung sistem moneter sareng kauangan urang résiko. Nalika neraca pamaréntah dina bentuk anu santun, résiko standar anu tersirat ku pamaréntah ampir nol. Éta pikeun dua alesan. Firstly, kamampuhan maranéhna pikeun pajeg. Bréh, sarta leuwih importantly, pangabisa maranéhanana pikeun nyitak duit mayar handap injeuman na. Baheula argumen eta asup akal, tapi ahirna nyitak duit geus jadi "kredit boogie man", sakumaha dipedar ku Greg Foss,

Pamaréntah ngiderkeun langkung seueur artos tibatan sateuacanna. Data ti Federal Reserve, sistem perbankan sentral AS, nunjukkeun yén ukuran lega tina saham dollar, katelah M2, naék tina $ 15.4 triliun at the start of 2020 to $21.18 trillion by the end of December 2021. The increase of $5.78 trillion equates to 37.53% of the total supply of dollars. This means that the dollar's monetary inflation rate has averaged well over 10% per year over the last 3 years. Beungkeut Perbendaharaan AS ngahasilkeun kirang.

Pulangan anu tiasa didamel ku artos énjing, ku parting jeung duit nu kiwari kudu téoritis positif pikeun ngimbangan resiko jeung ongkos kasempetan. Najan kitu, beungkeut geus jadi kawajiban contractual leungit duit nalika Inflasi ieu dibanderol di. Salaku tambahan, aya résiko gagalna sistematis. Sistem kauangan global rusak teu tiasa dibalikeun deui jeung beungkeut salaku pondasi eta, aya dina resiko tinggi.

Aya jumlah kiridit anu teu tanggung jawab di pasar. Dina dekade panganyarna, bank sentral geus miboga kawijakan hutang pisan leupas sarta nagara bangsa geus ditanggung jumlah badag hutang. Argentina sareng Venezuela parantos gagal. Aya kamungkinan yén langkung seueur nagara bakal ingkar hutangna. Standar ieu henteu hartosna aranjeunna henteu tiasa mayar deui hutangna ku nyitak langkung seueur artos. Sanajan kitu, ieu bakal nurunkeun peunteunna hiji mata uang nasional, ngabalukarkeun inflasi jeung nyieun paling beungkeut kalawan ngahasilkeun comparatively low malah kirang pikaresepeun.

For the past 50 years, when equities have sold off, investors fled to the “safety” of bonds which would appreciate in “risk off'' environments. This dynamic built the foundation of the infamous 60/40 portfolio — nepi ka kanyataan éta finally collapsed in March 2020 when central banks decided to flood the market with money. The attempt to stabilize bonds will only lead to an increased demand for bitcoin langkungna Waktos.

Graham's philosophy was first and foremost, to preserve capital, and then to try to make it grow. With bitcoin it is possible to store wealth in a self sovereign way with absolutely zero counterparty or credit risk.

Bitcoin Versus Real Estate

Dibikeun tingkat tinggi inflasi moneter dina dasawarsa panganyarna, nyimpen duit dina rekening tabungan teu cukup pikeun ngawétkeun nilai duit. Salaku hasilna, loba nyekel bagian signifikan tina kabeungharan maranéhanana di real estate, nu geus jadi salah sahiji toko pikaresep tina nilai. In this capacity, bitcoin competes with real estate, the properties associated with bitcoin make it an ideal store of value. The supply is finite, it is easily portable, divisible, durable, fungible, censorship-resistant and noncustodial. Real estate cannot compete with bitcoin salaku toko nilai. Bitcoin is rarer, more liquid, easier to move and harder to confiscate. It can be sent anywhere in the world at almost no cost at the speed of light. Real estate, on the other hand, is easy to confiscate and very difficult to liquidate in times of crisis, as recently illustrated in Ukraine, where many turned to bitcoin to protect their wealth, accept transfers and donations, and meet daily needs.

Dina wawancara anyar sareng Nik Bhatia, Michael Saylor rinci ngeunaan downsides real estate salaku toko asset nilai. Salaku dipedar ku Saylor, real estate sacara umum merlukeun loba perhatian lamun datang ka pangropéa. Sewa, perbaikan, manajemén harta, biaya tinggi timbul sareng perumahan. real estate komérsial contona, pisan ibukota intensif sahingga uninteresting keur kalolobaan urang. Salajengna, usaha pikeun ngajantenkeun aset langkung diaksés ogé gagal, kalayan investasi perumahan tingkat kadua sapertos amanah investasi real estate (REITs) teu leres-leres nahan aset éta.

As Bitcoin (digital property) continues its adoption cycle, it may replace real estate (physical property) as the preferred store of value. As a result, the value of physical property may collapse to utility value and no longer carry the monetary premium of being used as a store of value. Going forward, bitcoin's return will be many times greater than real estate, as bitcoin is just at the awal siklus nyoko na. Sajaba ti éta, urang paling dipikaresep moal ningali tipe sarua mulih dina investasi real estate sakumaha urang geus kaliwat. Kusabab 1971, harga imah geus ngaronjat ampir 70 kali. Saluareun éta, sakumaha anu ditunjukkeun ku Dylan LeClair dina podcast-artikel na, "Kacindekan tina Siklus Hutang Jangka Panjang", governments tend to tax citizens at times like this. Real estate is easily taxed and difficult to move outside of one jurisdiction. Bitcoin cannot be arbitrarily taxed. It is seizure and censorship resistant outside of the domain of any one jurisdiction.

Bitcoin Versus ETFs

Exchange-traded funds (ETFs) emerged out of index investing, which utilizes a passive investment strategy that requires a manager to only ensure that the fund's holdings match those of a benchmark index. Dina 1976, Jack Bogle, pangadeg Grup Vanguard, dibuka dana indéks munggaran, Vanguard 500, nu ngalacak mulih ti S & P 500. Dinten, ETFs ngatur ogé leuwih $ 10 triliun. Bogle ngagaduhan prinsip: milih saham aktif mangrupikeun latihan anu teu aya gunana. Kuring émut anjeunna nyarios sababaraha kali dina wawancara na yén salami umurna, ngan ukur aya kasempetan 3% yén manajer dana tiasa sacara konsistén outperform pasar. Anjeunna menyimpulkan yén investor rata bakal manggihan hésé atawa teu mungkin ngéléhkeun pasar, nu ngarah ka prioritas cara pikeun ngurangan expenses pakait sareng investasi sarta nawarkeun produk éféktif nu ngaktipkeun investor pikeun ilubiung dina pertumbuhan ékonomi sarta nyimpen. Dana indéks merlukeun pangsaeutikna trades pikeun ngajaga portopolio maranéhanana ti dana jeung manajemén leuwih aktip schemes sahingga condong ngahasilkeun leuwih pajeg-efisien mulih. The concept of an ETF is good, but bitcoin leuwih hade. You can cover a lot of ground through an ETF, but you still have to limit yourself to one index, industry, or region. However, when you buy bitcoin, you buy a human productivity index. Bitcoin is like an “ETF on steroids”. Let me explain :

Jangji tina Bitcoin should at least be on everyone's lips by now. A decentralized computer network (Bitcoin) with its own cryptocurrency (bitcoin), which, as a peer-to-peer network, enables the exchange and, above all, the storage of value. It is the best money we have and the base protocol for the most efficient transaction network there is (Lightning Network). It is very likely that Bitcoin will become the dominant network for transactions and store of value in the not too distant future. At that point, it will act as an index of global productivity. The more productive we are, the more value we create, the more transactions are executed, the more value needs to be stored, the higher the demand for bitcoin, beuki luhur teh bitcoin price. I've come to the conclusion that instead of using an ETF to track specific indices, I can use bitcoin to participate in the productivity of all of humanity. As you might expect, bitcoin's returns have outperformed all ETFs since its inception.

Bitcoin Returns Versus ETFs Returns

SPDR S&P 500 ETF Trust mangrupikeun ETF panggedéna sareng pangkolotna di dunya. Éta dirancang pikeun ngalacak indéks pasar saham S&P 500. Kinerja dina dasawarsa ka tukang (26 Oktober 2012 dugi ka 25 Oktober 2022) nyaéta 168.0%, anu hartosna pulangan taunan rata-rata 16.68%. Henteu goréng, khususna nunjukkeun yén sadaya anu kedah dilakukeun ku investor nyaéta tahan.

However, over the same period, bitcoin‘s performance was: 158,382.362%. More than 200% per annum. We've all heard the phrase that past performance is no indicator of future performance, that may be true. But that is not the case with bitcoin. The higher a stock goes the riskier it becomes, because of the P/E ratio. Not bitcoin. Iraha bitcoin increases in price, it becomes less risky to allocate to, because of liquidity, size and global dominance. The Bitcoin Network has now reached a size where it WILL last (Pangaruh Lindy).

We can therefore conclude that bitcoin is likely to continue to outperform ETFs going forward.

Bitcoin has other advantages over an ETF. First, it has a lower cost structure. Second, the latter is a basket of securities held by a third party. You are not free to dispose of your ETFs. If your bank, for whatever reason, decides to close your account, your ETFs are gone too. Bitcoin, on the other hand, cannot be taken away from you or denied access so easily. Additionally, bitcoin can be moved across the internet at will at the speed of light, making confiscation nearly impossible.

kacindekan

Bitcoin is the best wealth preservation technology for the digital age. An absolutely scarce digital native bearer asset with no counterparty risk that cannot be inflated and is easily transportable. A digital store of value, transferable on the world’s most powerful computer network. Considering that the Bitcoin network could theoretically store all of the world’s wealth (Global wealth reached a record high of $530 trillion in 2021, nurutkeun kana Boston Consulting Grup), it may well be the most efficient way we humans have found to store value ever. By holding bitcoin your wealth is going to be protected, likely increasing it by 10x,100x, maybe 500x, during this early monetization process. Upami anjeun tahan pikeun sababaraha dekade ka hareup.

In closing, I'd like to revisit Jack Bogle, who was a huge influence on me. As described by Eric Balchunas, Bogle‘s life work is addition by subtraction. Getting rid of the management fees, getting rid of the turnover, getting rid of the brokers, getting rid of the human emotion and the bias. His entire life's work had been in a similar direction, and as such, I think bitcoin fits well with his investment ethos. Bogle’s primary philosophy was “common sense” investing. He told Reuters in 2012. "Paling sadayana, anjeun kedah disiplin jeung anjeun kudu nyimpen, sanajan anjeun hate sistem finansial urang ayeuna. Kusabab upami anjeun henteu ngahémat, maka anjeun dijamin moal aya nanaon." Bitcoin is very similar to what Bogle envisioned with passive mutual funds. A long term savings vehicle for investors to place their disposable income with low cost and little risk. Don't be distracted by bitcoin's volatility or negative press, to quote Jack Bogle: tetep dina kursus. We're just getting started, stay humble and stack sats. Your future self will thank you.

This article is the last in a three-part series in which I aim to help you understand some of the benefits of using Bitcoin as a "tool."

In part one, I explained what opportunities bitcoin offers for real estate investors.
In part two I described how bitcoin can help us find optimism for a brighter future.

This is a guest post by Leon Wankum. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Majalah.

sumber aslina: Bitcoin majalah