Fidelity Digital Assets Says Bitcoin Is Sound Money.
Fidelity Digital Assets (FDA) stated that Bitcoin, the world’s largest cryptocurrency, is a superior form of money, urging investors to consider the nascent asset class separately from other digital currencies.
The digital asset arm of Fidelity Investments stated that the 26-page report titled Bitcoin First is published to guide new investors who are considering which cryptocurrency is the perfect choice to put their money into.
While the FDA believes that bitcoin’s first technological breakthrough is not a superior payment method, Bitcoin is a superior form of money to other cryptocurrencies, and it is widely considered a store of value.
Our latest piece argues that bitcoin’s first technological breakthrough wasn't as a superior payment technology but as a superior form of money. As a monetary good, bitcoin should be considered separately from other digital assets.
Read Bitcoin First:https://t.co/FNFghIXkrI pic.twitter.com/AXaACgUlzM
— Fidelity Digital Assets (@DigitalAssets) January 31, 2022
The FDA argues that no cryptocurrency will supersede bitcoin as a monetary good because bitcoin is considered by many to be more secure, scalable, decentralized, and sound digital money than all existing digital currencies.
The report added that BTC should be evaluated from a different perspective because it has, in recent times, become the entry point for traditional investors seeking to gain exposure into cryptocurrencies.
The report writes:
“Bitcoin’s first technological breakthrough wasn’t as a superior payment technology but as a superior form of money. As a monetary good, bitcoin should be considered separately from other digital assets.
Bitcoin is best understood as a monetary good, and one of the primary investment theses for bitcoin is as the store of value asset in an increasingly digital world.
Bitcoin is fundamentally different from any other digital asset. No other digital asset is likely to improve upon bitcoin as a monetary good because bitcoin is the most (relative to other digital assets) secure, decentralized, sound digital money and any “improvement” will necessarily face tradeoffs.”
A good number of investors have recently turned to bitcoin due to its prowess of being a hedge against inflation and a better store of value than most financial instruments.
Aside from retail traders, Bitcoin has been widely adopted by institutional and corporate clients in recent times.
More so, bitcoin was recently declared a legal tender by El Salvador, with the country subsequently purchasing several units of the cryptocurrency.
Last month, following the massive cryptocurrency dip, El Salvador took advantage of the market to purchase an additional 410 BTC.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
