A Swiss researcher has concluded that Bitcoin may be significantly undervalued as a store of value.
Thomas Huber from the Department of Management, Technology, and Economics at ETH Zurich University has made the comments suggesting that this is primarily because of mainstream investors missing Bitcoin’s “value proposition.”
The ongoing research into cryptocurrency markets at the Swiss University has revealed that Bitcoin may be the only viable solution for a non-sovereign store of value. The research indicates that part of the reason for Bitcoin’s apparent low price may be down to the way that investors evaluate cryptocurrencies in general. Huber suggests:
“Given their access to tech startups and the USD, many tech and Wall Street investors merely perceive bitcoin as an asymmetric bet or call option. This resulted in the under-valuation of bitcoin’s store of value proposition and it’s hard-coded/immutable monetary policy.”
Huber adds that this investor view is holding back the price as traditional investors still don’t comprehend Bitcoin’s main advantages such as its security and decentralized nature, added to which it is “censorship-resistant.” Huber elevates Bitcoin to what he calls the “reinvention of money” claiming that this hasn’t yet been realized by most investors. He feels that many on Wall St perceive Bitcoin as an opportunity rather than as the money of the future, using it as an option.
The researcher claims that Ethereum will be overshadowed by Bitcoin in the final analysis as bells and whistles will give way to solid performance, delivery and fulfillment of promise and Bitcoin offer all of these. He says:
“In the case of a monetary protocol—which needs to be secure, decentralized, and censorship-resistance — a low-innovation rate is a feature, not a bug. Monetary ‘innovation’ has—as interventionist central bank policies illustrate — mainly resulted in the debasement of money.”
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