SLP181 Preston Pysh Bitcoin as Numeraire

Bitcoin functions as a superior unit of account, fundamentally challenging traditional fiat-based financial valuations and investment strategies. The recent halving event underscores the interplay between mining difficulty adjustments and supply scarcity, which dictates market price floors more effectively than short-term derivative speculation. Denominating corporate performance in Bitcoin reveals a significant erosion of purchasing power, exposing the distortive impact of central bank quantitative easing and artificially suppressed interest rates. These inflationary policies drive competitive currency devaluation, eroding middle-class wealth and forcing capital into scarce assets. Rather than attempting to time volatile markets or engage in complex derivative trading, investors benefit from a long-term, passive accumulation strategy. This approach recognizes Bitcoin’s four-year cycle as a structural reality, positioning it as a hedge against the inevitable instability of global fiat systems and the unsustainable expansion of the monetary base.