There’s more to Bitcoin than just the halving — Why it pays to be long on BTC

Bitcoin (BTC) recently underwent its fourth reduction in new supply creation, leading to anticipation among market players regarding its potential effects. The worth of Bitcoin, though, derives from its exclusive “moneymanship traits.”

One discovery made by Joe Burnett, a researcher at Unchained – a Bitcoin financial services firm specializing in collaborative custody solutions for BTC owners – is as follows: (This paraphrase aims to convey the original meaning in simpler and more conversational terms.)

In a recent study, Burnett revealed that Bitcoin could serve as an effective shield against market volatility, safeguarding your savings from potential losses.

He holds the opinion that Bitcoin is an excellent investment with the ability to facilitate “time-proof transfers of contemporary wealth,” avoiding any loss over long periods.

During an interview with CryptoMoon, Burnett shared why he’s an advocate for Bitcoin and the benefits of investing in it for an extended period.

In the cryptocurrency community, there’s been a lot of discussion surrounding the concept of “halving” in Bitcoin. However, for those unfamiliar with crypto jargon, this term might be confusing. As a retail investor, what is the most essential information you should understand about the Bitcoin halving?

At block number 840,000, the reward for mining new Bitcoin blocks decreases from 6.25 to 3.125 BTC automatically. No entity, be it a government or a corporation, possesses the ability to manipulate Bitcoin’s issuance calendar. Should there be a need to modify the rules, a new blockchain would emerge as a result. The appeal of Bitcoin lies in its superior monetary characteristics (transportable, long-lasting, easily dividable, and interchangeable) and its most dependable limitation on supply.

There’s more to Bitcoin than just the halving — Why it pays to be long on BTC

The process of halving is simply another step in the sequence, verifying a consistent, unchangeable, and clear-cut monetary strategy.

CT: ETFs have boosted Bitcoin’s price, but eventually, investors may need to adjust their portfolios or sell, which could influence Bitcoin’s price trend. With Unchained’s audience in mind, what discussions are you engaging in regarding Bitcoin’s price fluctuations?

JB: Unchained aims to create financial solutions tailored for individuals who plan to keep their Bitcoins for extended periods, rather than constantly buying and selling. Bitcoin’s value can be unpredictable in the short term, so it’s advisable to invest funds you intend to save for years into it. By doing so, you can disregard temporary market fluctuations and concentrate solely on potential long-term price growth.

CT: I know a lot of analysts and researchers don’t like to talk about price, but hey, it’s what the people want to know. Data shows that Bitcoin price goes parabolic ahead of the halving, yet we are more than 10% down from the all-time high here. What do you think of the left-translated cycle theory, and why did the BTC price sell-off sharply ahead of the halving?

JB: This is actually the first cycle where Bitcoin made a new all-time high before a halving.

There’s more to Bitcoin than just the halving — Why it pays to be long on BTC

Before the Bitcoin halving, the approval of spot Bitcoin ETFs might have significantly influenced the cryptocurrency’s price surge. However, I believe that the eighteen months following the halving will bring positive developments as well. In my viewpoint, Bitcoin’s price has been declining in tandem with traditional markets recently, and the S&P 500 is also experiencing a downturn.

There’s more to Bitcoin than just the halving — Why it pays to be long on BTC

The price of Bitcoin serves as an indicator of worldwide financial fluidity. Under tough economic circumstances, Bitcoin may experience declines. Conversely, in times of relaxation in macroeconomic conditions, Bitcoin could potentially thrive. Over the longer term, with more US dollars being printed, Bitcoin represents the swiftest means of investment.

PT: What makes you so optimistic about Bitcoin despite recent losses for investors? You’ve mentioned that their assets have been shrinking for different reasons.

JB: Any form of wealth that humans don’t store in Bitcoin is susceptible to devaluation. For instance, if the world possesses $15 trillion dollars’ worth of wealth in gold, inventors will find ways to extract more gold. Similarly, if the world has $300 trillion dollars’ worth of wealth in real estate, builders will discover methods to construct more properties.

There’s more to Bitcoin than just the halving — Why it pays to be long on BTC

Bitcoin stands out as the financial asset with the most desirable monetary features, remaining unchanged even when large fortunes are held in it. Up until now, we’ve lacked a suitable means to preserve our contemporary wealth over long periods without loss.

Q: Which major psychological obstacle must be addressed or surmounted for potential investors in Unchained to consider investing in Bitcoin?

For those pondering over adding Bitcoin to their savings, whether personal or business, remember that this cryptocurrency is not a quick path to riches for the short term. Instead, holding Bitcoin means being prepared for a long-term commitment with significant price fluctuations.

PT: The reduction in the supply of new Bitcoins has ended, and Bitcoin has already surged by 58% in value this year. Is it still worthwhile for potential investors to enter the market at this point?

JB: If the recent bitcoin halving has sparked your interest once again and you’ve started accumulating some, ensure that you securely store your Bitcoins. The safest method is collaborative custody as it eliminates the risk of a single point of failure. Avoid relying on exchanges like Mt. Gox, FTX, Coinbase, or institutions such as BlackRock for all your Bitcoin. Instead, opt for a solution that prevents any single entity from having control over your coins. Unchained provides this very solution!

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2024-04-23 20:03