Giant financial service provider Fidelity, in order for countries to take part in the competition, Bitcoin (BTC) He claimed it would speed up his purchases.
Publishing a new report, Fidelity noted in the report that according to the theory of the strategists at the firm, there is a ‘high-stakes game’ in the markets and countries that adopt the existence of Bitcoin, the leading unit of the crypto money world, early in this game may be more advantageous than countries that adopt later.
“If Bitcoin adoption increases, countries that store/secure some Bitcoin today will be competitively better off than countries that got into the game later on.
Therefore, other countries may have to invest in BTC as a form of insurance, even if they do not believe in the investment thesis or adoption of BTC.
In other words, a small cost can be paid for a hedge today, compared to a potentially much larger cost in the future. Therefore, it would not surprise us at all to see other nation-states buying Bitcoin in 2022, and maybe even a central bank buying BTC.”
According to Fidelity, regulations such as the ‘US infrastructure bill’ speaking out in November will help validate cryptocurrencies as a ‘legitimate’ asset class.
Fidelity also claimed that while the legislation is vague, there are lawmakers who are aware of it and are trying to amend the bill to save it.
“The legislation is not scheduled to go into effect until 2024 and many changes are already being proposed, so time will tell what the legislation itself will be.
But what we think is most notable is that the enactment of digital asset regulation is another milestone as the asset class ages and establishes itself.”
Bitcoin is trading at $43,546 at the time of writing, up 6.5% compared to a seven-day low of $40,897.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.