"Bitcoin Revolution" report: Bitcoin economy is similar to Europe in the 16th century, optimistic about the derivatives market

According to Ambcrypto, Adamant Capital recently published a report called the Bitcoin Revolution. Among them, the researchers compared the bitcoin economy with Europe from the 16th to the 17th century, and compared investor sentiment and market sentiment in two time periods.

In the Bitcoin community, to avoid aversion to credit third parties, deal with risk theft and loss, and long-term regulatory uncertainty, we expect to adopt more highly secure, least trusted Bitcoin deposit banking solutions.

According to the report, trust minimization is designed to make theft or fraud extremely difficult; in the future, the use of multi-signature addresses for bit storage may become a trend.

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In the 16th century Europe, the Bank of Amsterdam (the first central bank in Europe) and its banknotes played a key role in the prosperity of the Dutch Republic. Although the agency charges too much for storage, transactions, and withdrawals, its notes have a premium on the face-to-face transaction price compared to the actual gold and coins behind it. The report also compares the behavioral patterns of merchants buying insurance at the time with current insurance trends in the bitcoin sector.

Similarly, in the 16th century Europe, the Dutch East India Company completed its first initial public offering (IPO), creating a highly liquid stock market. Since stocks can also be used as collateral, this makes it a perfect asset for a prosperous derivatives market. According to historian LO Petram,

“Between 1630 and 1650, investors were primarily interested in the financial services provided by the secondary market, not the East India trade itself.”

These historical Dutch East India company VOC shareholders have similarities with modern bitcoin holders. The latter are also long-term investors. Their wealth is relatively concentrated on assets and they do not like to sell because it leads to capital gains tax.

We anticipate that the use of Bitcoin as a collateral for borrowing will become more common . At the same time, we are also optimistic about the Bitcoin derivatives market . Our hypothesis is that industries with the greatest impact on price volatility will develop into the largest derivatives markets, such as VOC stocks in Amsterdam in the 16th century, agriculture and precious metals in 1980, current and future interest rates, and perhaps bitcoin.

The researchers also pointed out that there are similarities between the annuity issued by Dutch cities in history and today's IEO tokens. Similar to the way in which an annuity was raised during the Dutch Revolutionary War, other large exchanges such as Bitfinex, Coin, and Coin also launched digital assets with an annuity character. Today, the Bitcoin exchange has established a loyal customer base that reflects trust in the issue of annuity entities, which are not guaranteed to recover collateral.

Similarly, we anticipate that these annuity-like products will continue to be popular in offshore bitcoin exchanges and in the 'millennials' involved in encrypted transactions. Over time, we look forward to the emergence of life insurance mutual aid companies . Inflation has curbed demand for life insurance, so if Bitcoin is widely adopted as a hard currency, it is logical that life insurance products become very popular again.

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