There’s more to Bitcoin than just the halving — Why it pays to be long on BTC
Bitcoin (BTC) just completed its fourth halving, and market participants are waiting for its impact. However, BTC's value lies in its unique “monetary properties.”
That is one of the findings by Joe Burnett, a researcher at Unchained, a Bitcoin financial services company that provides individuals and businesses with value-collaborative custody for their BTC.
Burnett recently published research findings revealing that Bitcoin is the best savings tool to “stop the free market from inevitably melting your wealth.”
He believes Bitcoin is a superior asset that allows for the transfer of “modern wealth through time without a leak.”
In an interview with Cointelegraph, Burnett revealed his reasons for being a vocal Bitcoin bull and why it pays to invest in BTC for the longer term.
Cointelegraph: There’s been a ton of talk in crypto circles about the impact of halving, but for the average non-crypto-centric person, this probably sounds garble. What’s the most important thing you think retail investors should know about the Bitcoin halving?
Joe Burnett: At block 840,000, the Bitcoin block subsidy drops from 6.25 to 3.125 BTC, programmatically. No government, no company and no group of people can alter Bitcoin’s supply schedule. If you change the rules, you simply fork off and create another network. Bitcoin is the best money because it has the best monetary properties (portable, durable, divisible, fungible), and it has the most credibly scarce supply limit.
The halving is just another block in the chain that confirms a predictable, immutable and transparent monetary policy.
CT: The ETFs have been credited with putting some oomph behind Bitcoin price, but at some point, ETF holders are bound to rebalance or become sellers, impacting the direction of Bitcoin price. Given Unchained’s focus, what type of convos are you having with investors about Bitcoin’s price volatility?
JB: Unchained is designed to build financial services for long-term Bitcoin holders. When it comes to Bitcoin, it’s best not to hold it for short periods of time. Instead, allocate capital that you intend to save for years to Bitcoin. This enables you to ignore the short-term volatility and focus entirely on the long-term capital appreciation.
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.
The spot Bitcoin ETFs may have played a critical role in the price increase before the halving, but it seems likely that the approximately 18 months after the halving will be positive as well. In my opinion, the BTC price has been selling off with traditional markets. The S&P 500 is also down.
Bitcoin is a gauge for global liquidity. If macro conditions are tightening, Bitcoin will suffer. If conditions are easing, Bitcoin will benefit. In the long run, more dollars will be created, and Bitcoin is the fastest horse.
CT: Why are you such a Bitcoin bull? Recently, you said investors are seeing their wealth “melt away” for various reasons.
JB: Any wealth that humanity stores outside of Bitcoin can be debased. If the world holds $15 trillion dollars worth of wealth in gold, entrepreneurs will figure out how to mine more gold. If the world holds $300 trillion dollars worth of wealth in real estate, entrepreneurs will figure out how to build more houses.
Bitcoin is the one asset with the most superior monetary properties and does not melt, no matter how much wealth is stored in Bitcoin. We have not, until now, had an adequate asset to transfer our modern wealth through time without a leak.
Related: Bitcoin Bollinger Bands hit level that saw BTC price squeeze past $50K
CT: What is the biggest psychological hurdle that potential investors at Unchained need to overcome or be convinced of before making an allocation to Bitcoin?
JB: Individuals and enterprises considering saving Bitcoin in their treasury should note that Bitcoin is a long-term saving, not a short-term get-rich-quick scheme. If you hold Bitcoin, you should be prepared to hold it for multiple years and expect extreme volatility.
CT: The halving is over, and Bitcoin is up 58% this year. Do you think it’s too late for investors to position in BTC?
JB: If the halving made you think about Bitcoin again and you’ve started to accumulate some, make sure you’re holding it in the most secure way possible. Collaborative custody is the best way to hold Bitcoin because it enables you to hold it without a single point of failure. Don’t trust Mt. Gox, FTX, Coinbase or BlackRock with all of your Bitcoin. A single institution should not be able to lose your coins. Unchained fixes this!
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.