Asset management firm Fidelity Investmentsa subsidiary of Fidelity Digital Assetspublished a report evaluating Bitcoin.
In the 26-page report released Monday, bitcoinIt was said that .
“No other digital asset is likely to do better than Bitcoin as a monetary good, because Bitcoin is the most secure, decentralized, stable digital currency (relative to other digital assets).”
research director Chris Kuiperand research analyst Jack NeureuterAccording to , the leading cryptocurrency has many “good features” of traditional money. Bitcoin is an asset that combines “the scarcity and durability of gold, the ease of use, storability and portability of its traditional units,” according to the report.
Analysts noted that, like other monetary products, Bitcoin does not have a partnership, pay dividends or cash flow. Its value must therefore exceed its ability to better fulfill the characteristics of a monetary good compared to traditional alternatives.
Both Bitcoin gold as well as to fiat currency The advantage is its versatility. Precious metals and coins issued by central banks were counterfeited. Also, the verifiability of gold can only be achieved through “bulky assay”.
Besides, Bitcoin limited supply Also, one of its most important features and another advantage over gold. Fidelity said that Bitcoin should first be seen as a “superior monetary good.”
“The fact that the market favors Bitcoin, which is slower as a payment system compared to other digital assets and blockchains, indicates that the market currently values a highly secure and decentralized store of value rather than any other payment network.”
Bitcoin carries some risks for investors, including the potential for having vulnerabilities and opposition from major countries to the growth of the digital asset ecosystem. However, according to the report, some investors may be underestimating the potential returns of Bitcoin compared to other digital assets.
“If investors are looking for a digital asset as a monetary good with the ability to store value, they will naturally choose the one with the largest, safest, most decentralized and most liquid network.”
Bitcoin has recently approximated the value of the overall crypto market. 41%dominate. While this value is less than 100%, Fidelity adds that this is due to “not shrinking in size, but growth of the rest of the ecosystem.”
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.