In a recently published report, researchers from Adamant Capital have compared the modern-day Bitcoin economy to that of Europe between the 16th and 17th centuries. Titled ‘The Bitcoin Reformation,’ the report draws fascinating parallels between the two economies separated by time, as well as the behavioral tendencies of investors and market sentiments.
“In the Bitcoin community, in response to a cultural aversion of trusted third parties, high risk of theft and loss, and long-term regulatory uncertainty, we expect increased adoption of highly secure, trust-minimized bitcoin deposit banking solutions.”
The report stated that the most trust-minimized solutions are those designed to render theft or fraud extremely difficult, adding that the growing adoption of multi-sig addresses for Bitcoin storage is likely a promising start for a much bigger trend.
In 16th century Europe, the Amsterdam Wisselbank (AWB) and its money’s “intrinsic superiority to currency” had played a key role in the prosperity of the Dutch republic. Despite the institution charging exorbitant fees on storage, transactions, and withdrawals, their notes were traded at a premium versus the actual gold and coins they were backed by. The report also compared the behavioral patterns of merchants in terms of the insurance they bought to current insurance trends in the Bitcoin space.
16th century Europe saw the first-ever modern IPO when the Dutch East India company did a public offering, creating a market of highly liquid shares that were also desirable as collateral. This made them perfect assets for a flourishing derivatives market and according to historian L.O. Petram, “after the period 1630-50, investors were primarily interested in the financial services the secondary market provided, rather than in the East India trade itself.”
These historical VOC shareholders shared similarities with modern-day Bitcoin savers,