According to a recent report by Arcane Research, commissioned by Luno, Bitcoin could be seen as an emerging alternative to the current financial system.

The report is based on an extensive international survey conducted by Luno in 2019, and repeated in 2020, and focuses on the effects that the pandemic and financial instability are having on the global financial system.

It also analyses investors‘ attitudes towards governments, central banks and money, with particular attention to the perception of trust and uncertainty.

Despite growing confidence in governments and central banks, the current „chaotic economic climate“ and a gloomy and unique macro-level environment are highlighted, in which widespread and aggressive fiscal and monetary stimulus packages are added to possible negative interest rates, which generate hypotheses of loss of purchasing power for fiat currencies.

Just in this perspective Bitcoin would emerge as a possible alternative.

In fact the report writes:

„In such uncertain times, it has sense to widen the field and to look for other alternatives“.

Bitcoin as an alternative to traditional assets

Under these conditions some assets, such as gold and shares, should prosper, but in the last 10 years a new form of money, bitcoin, has been born, combining the properties of modern money and gold into a new type of asset.

In fact it is both scarce, like gold, and easily transferable, like fiat currencies. It is in fact accessible to everyone, and with new technologies (like Lightning Network) it can also be used for micropayments.

It is independent from politics, states and central banks, programmable and autonomous, with a predictable and unchanging inflation rate: from now on the supply can grow at most 13.5%, making its supply known and certain.

With these assumptions, the report concludes that

„This makes bitcoin attractive as a reservoir of value for the future“.

The fact that, in the meantime, the fiat currencies are in doubt about the exact opposite, i.e. a loss of value due to rising inflation, is allowing Bitcoin to gain attention even from renowned investors in traditional finance, so much so that in the future BTC could become the preferred saving tool for many people.

Indeed, the report says:

„Its absolute scarcity and decentralized nature could make it the only feasible option to move away from the big monetary experiment“.