Phil Geiger is the Managing Director of Concierge Services at Unchained Capital. In this interview, we discuss how robust protocols and monetary policy, essential utilities for energy producers, and Hodler’s dedicated community make Bitcoin an extremely low-risk investment.
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No other scalable commodity, currency, or asset has issued as stable a supply as Bitcoin. 21 million coins. that’s it. A coarse-grained consensus governance process, financial incentives for miners, and a highly decentralized node verification process combine to make this digital scarcity rigid. No altcoin can compete. “Digital scarcity is his one-off phenomenon” – Phil Geiger, April 2020.
There are things that have pushed the boundaries of this supposed commitment. They are primarily motivated by various concerns about the security implications of reduced supply: how will the 51% attack come about when Bitcoin will be issued significantly less and will eventually end? Can transaction fees alone protect the network?
But Bitcoin’s value is underpinned by its fixed supply schedule, from which all other considerations derive. According to Phil Geiger, these 21 million coins of his already exist. Both in terms of supply schedules and fixed limits. This is what underpins the huge investments made by miners. Monetary transparency and scarcity to support prices. Changing this can seriously damage the assimilation of mining into energy production.
This is why, in Phil’s view, Bitcoin is a very low risk investment compared to other assets (both digital and physical). The evidence is in the hodling behavior. Using Bitcoin is essential for Bitcoin to move from a defensive store of value to a productive medium of exchange. The fact that he has people in his ATH who have held Bitcoin for over a year shows that investors are very confident of long-term success.
But what about long-term security? Reducing the block reward encourages miners to make the most of their block space. Coupled with more users, this will push up the trading price of Bitcoin, thereby supporting the transition to a world of post-block rewards. whether or not This should be discussed. But inflating Bitcoin is not the answer. Because this is the essence of Bitcoin.