Preserving Wealth For The Future: Why Bitcoin Beats Gold, Bonds, Real Estate, and Equities
• Leon Wankum compares four common wealth preservation technologies (gold, bonds, real estate, and equities) to Bitcoin to show why they underperform and how Bitcoin can be more efficiently used as a means of long-term savings.
• He looks to evolutionary psychology to explain the importance of preserving wealth in the development of human civilization, citing Nick Szabo’s essay “Shelling Out: The Origins of Money.”
• He argues that the ability to preserve wealth is one of the foundations of human civilization and that Bitcoin is an ideal tool for storing value.
Leon Wankum, one of the first financial economics students to write a thesis about Bitcoin in 2015, explores the importance of preserving wealth in the development of human civilization. Drawing from evolutionary psychology, he looks to Nick Szabo’s essay “Shelling Out: The Origins of Money” to explain why homosapiens sapiens were able to outcompete homo neanderthalensis in Europe circa 40,000 to 35,000 B.C. Szabo postulates that the biggest difference may have been wealth transfers made more effective or even possible by collectibles. Wankum argues that this capability to preserve wealth is one of the foundations of human civilization and that understanding its importance is crucial to our future.
Wankum then goes on to compare four of the most commonly used wealth preservation technologies today (gold, bonds, real estate, and equities) to Bitcoin to demonstrate why they underperform and how efficiently Bitcoin can help us save and plan for our future. For equities, he focuses specifically on ETFs as equity instruments used as a means of long-term savings. He argues that gold, bonds, and real estate can be unreliable methods of wealth preservation due to their susceptibility to manipulation and manipulation by governments. On the other hand, he praises Bitcoin for its fixed supply, decentralization, and ability to protect against inflation.
In conclusion, Wankum argues that Bitcoin is the best option for long-term savings due to its secure and transparent nature. He explains that its ability to preserve wealth is one of the foundations of human civilization and that understanding its importance is crucial for our future. He provides a detailed comparison between Bitcoin and four of the most commonly used wealth preservation technologies today to demonstrate why Bitcoin is the best option for long-term savings.
