Fri. Jan 27th, 2023

• Evolutionary psychologists believe that the ability to “preserve wealth” gave modern humans the decisive edge in evolutionary competition with other humans.
• This article compares the four most commonly used wealth preservation technologies today (gold, bonds, real estate and equities) to bitcoin to show why they underperform and how efficiently bitcoin can help us save and plan for our future.
• Evidence shows homosapiens sapiens took pleasure in collecting shells, making jewelry out of them, showing them off and trading them.

In recent years, the concept of wealth preservation has become increasingly important. Evolutionary psychologists believe that the ability to “preserve wealth” gave modern humans the decisive edge in evolutionary competition with other humans. Nick Szabo’s essay “Shelling Out: The Origins of Money” provides an interesting anecdote about how homosapiens displaced homo neanderthalensis in Europe circa 40,000 to 35,000 B.C., resulting in population explosions. The biggest difference between the two species may have been the capability of homosapiens to preserve wealth through collectibles such as shells, jewelry and trading.

The capability to preserve wealth is one of the foundations of human civilization, and historically there have been a variety of wealth preservation technologies that have constantly changed and adapted to the technological possibilities of the time. Today, there are four commonly used wealth preservation technologies: gold, bonds, real estate and equities. In this article, I compare these four technologies to bitcoin, which is a relatively new form of wealth preservation, to show why they underperform and how bitcoin can help us save and plan for our future.

Gold has been used as a form of wealth preservation for thousands of years, due to its rarity and physical properties. Gold is difficult to counterfeit, and it is a precious metal that can’t be created out of thin air. Gold is also a liquid asset, meaning it can be quickly and easily converted into cash. However, gold is expensive and difficult to store and transport, making it a less than ideal form of wealth preservation.

Bonds are another form of wealth preservation, and they are typically issued by governments or corporations. Bonds are essentially loans that are paid back with interest, and they can be used to fund projects and investments. Bonds are generally considered to be a safe form of wealth preservation, as they are highly regulated and are backed by the issuer. However, bonds can be difficult to trade, and they are often subject to inflation and other macroeconomic factors.

Real estate is another form of wealth preservation, and it can provide a steady stream of income as well as appreciation over time. Real estate is generally considered to be a safe form of wealth preservation, as it is a tangible asset that is difficult to counterfeit. However, real estate is illiquid, meaning it can be difficult to quickly convert into cash. Additionally, real estate is expensive to purchase and maintain, making it a less than ideal form of wealth preservation.

Equities, or stocks, are the final form of wealth preservation that I will discuss. Equities offer the potential for high returns, as well as the opportunity to diversify investments. Equities are generally considered to be a safe form of wealth preservation, as they are relatively liquid and can be easily traded on the stock market. However, equities are subject to market volatility, and can be difficult to predict.

Bitcoin is a relatively new form of wealth preservation, and it offers a number of advantages over traditional forms of wealth preservation. Bitcoin is highly secure and virtually impossible to counterfeit, and it is not subject to macroeconomic factors such as inflation. Bitcoin is also highly liquid, meaning it can be quickly and easily converted into cash. Additionally, bitcoin is relatively inexpensive to purchase and store, making it an ideal form of wealth preservation.

In conclusion, there are a variety of forms of wealth preservation, and each has its own advantages and disadvantages. Gold, bonds, real estate and equities are all commonly used forms of wealth preservation, however, they all have certain drawbacks that make them less than ideal. Bitcoin, on the other hand, offers a number of advantages over these traditional forms of wealth preservation, making it an ideal choice for those looking to save and plan for their future.

By admin