Bitcoin has seen mammoth growths since its inception and because of that, its proponents continue to believe in it despite the bear runs. This sentiment has also resulted in the growth of the Bitcoin community, some now claiming that the world’s largest cryptocurrency could make all other money obsolete.
The company asked basic questions related to the concept of money and if Bitcoin fulfills those needs. The research showed that Bitcoin was much more effective in dealing with financial transactions than fiat ever was. According to the research economic systems converge on a single monetary medium sooner or later in the future.
This can mean that a cryptocurrency like Bitcoin could unify multiple economies together and even improve existing ones. The supply chain industry is expected to receive a massive boost in terms of developments. According to the research, the current major fiat currencies such as the Dollar, the Yen, the Pound all co-exist right now but that will be short-lived. Unchained capital added:
“None would subsist without the forces of government intervention; nor would any fiat currency have ever emerged if not for the prior existence (and limitations) of gold as a monetary medium. Modern monetary theorists and gold bugs alike will never admit it, but the calamity that is all fiat systems is nothing more than the manifestation of gold’s failure as a monetary medium. It is a dead man walking.”
Unchained capital believed that Bitcoin was the answer to fiat currency’s problems and that it was here to stay. The report then went on to list some of the characteristic advantages of the world’s largest cryptocurrency. One of them was that Bitcoin has an optimal monetary policy which was credibly enforced on a decentralized bias.
The report pointed out that Bitcoin completely removes the question of trust from the monetary equation. The total supply of Bitcoin is limited at 21 million and that constant will never change. At the same time, fiat regulators are allowed to print money as and when they please, leading to problems such as hyperinflation. Bitcoin’s scarcity makes it a constant in the ecosystem because then the value depends on the increasing demand.
There is also a theory that Bitcoin can easily ward off competition. Unchained’s research claimed that if any other asset with the same use case competes with Bitcoin, it would not stick. This would be because Bitcoin already exists and is finite.
Unchained Capital also talked about another one of Bitcoin’s greatest features: divisibility. Since Bitcoin is measured in satoshi, which is already a very small value, any amount of fiat currency can be converted into Bitcoin. This would mean that Bitcoin would facilitate the growth of a payment system which was seamless. Although it may take time for Bitcoin to become mainstream, its proponents are making sure that no stone is unturned in making it happen.