Bitcoin (BTC) Will Become “The Best Savings Tool” After the Halving
Bitcoin is posited as a superior savings tool due to its immutable scarcity and resistance to asset devaluation. Following the halving, lower Bitcoin supply inflation is expected to cause significant price appreciation, based on historical trends.
Today, traditional assets are continually degraded due to overproduction and inflation. Bitcoin emerges as a beacon of stability for its immutable scarcity and superior monetary properties.
As the next Bitcoin halving approaches, experts and market analysts highlight BTC as the definitive tool for long-term savings.
Bitcoin: The Ultimate Savings Tool
According to a new report, Bitcoin’s unique attributes put it ahead of traditional savings instruments. Joe Burnett, a researcher at Unchained, explained that the upcoming Bitcoin halving, which will reduce the block reward from 6.25 BTC to 3.125 BTC, will consolidate Bitcoin’s role as the main means of savings.
Burnett described the modern economic environment as an “innovation trap.” In this case, rapid technological advances 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. Burnett stated:
“Bitcoin may be the asset class that increasingly captures a significant share of total global wealth, all at a time when global wealth is increasing rapidly 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 become increasingly difficult.”
The researcher also highlighted that traditional assets, including fiat currencies, stocks and real estate, are susceptible to value erosion over time. For example, the US dollar has depreciated significantly, 92.8% in the last five years when compared to basic consumer goods.
More about Bitcoin Halving
This trend is reflected in other asset classes, with the 20-year Treasury bond falling more than 94.8% in the same period. Not even precious metals like gold and silver are immune.
Despite their historical reputation as stable stores of value, the increased efficiency of extraction and production technologies has led to an increase in supply which, in turn, decreases their value.
These findings underscore the declining returns of traditional investments and highlight the growing relevance of Bitcoin. Burnett argued that Bitcoin’s “immutable absolute scarcity” makes it a unique savings tool, especially in a hyper-competitive, innovation-driven economy.
Effects of Halving on Bitcoin (BTC)
As the halving approaches, reducing Bitcoin supply inflation by 50%, Burnett noted that this will decrease selling pressure and potentially lead to significant price appreciation.
Similarly, Matthew Howells-Barby, VP of Growth at Kraken, noted that the Bitcoin halving has historically catalyzed substantial price increases. He further explained that the influx of spot Bitcoin exchange-traded funds (ETFs) has likely accelerated BTC appreciation more than anticipated. Therefore, it is setting the stage for another post-halving bull cycle.
Bitcoin Price Forecasts after Halving
Price predictions place Bitcoin between $100,000 and $120,000 in the current bullish rally. Even the most optimistic long-term forecasts from analysts like Cathie Wood predict that BTC could reach $1.48 million by 2030.
The argument for Bitcoin’s superiority lies in its performance and its foundational technology, as it ensures that no more Bitcoin can be created beyond its limit of 21 million.
This aspect of Bitcoin is particularly pertinent as the halving approaches, highlighting its resilience against inflation and its ability to hedge against economic uncertainty.
By Audy Castaneda