BTC is down more than 50% from its all-time high of $69,000 in November. Despite this, financial services giant Fidelity continues to evaluate Bitcoin (BTC) as a strong investment with a future. Investment giant Fidelity highlights two key factors that could push Bitcoin (BTC) higher. Details are on Kriptokoin.com.
What are the two factors that will launch Bitcoin (BTC)?
In its new report, the firm cites two main reasons why investors consider Bitcoin separately from all other cryptocurrencies.
Bitcoin’s returns profile is driven by two strong tailwinds: the growth of the digital asset ecosystem and the potential instability of traditional macroeconomic conditions. These headwinds are likely to be more easily caught with less risk than most other digital assets.
Fidelity highlights the differences between Bitcoin and the rest of the emerging crypto asset class. The company says:
Bitcoin is fundamentally different from all other digital assets. No other digital asset is likely to improve Bitcoin as a monetary good… [but] the rest of the digital asset ecosystem can meet different needs or solve other problems that Bitcoin simply does not.
The report also states that the decade-old Bitcoin has already passed the test when it comes to stability and security. Namely:
Given that it’s been around longer than any other project, has deliberately simple code, and currently has a $1 trillion bounty for anyone who can exploit it, it’s the protocol least likely to encounter a major bug at this stage of its life.
The other main reason Fidelity is praising Bitcoin lies in its ability to protect against inflation. Here is Fidelity’s statement on the subject:
The overall stability of the financial system has historically tended to underline the importance of scarce assets whose supply cannot be changed. Bitcoin’s ruleset, historical precedents, and decentralization have created the greatest scarcity of any digital asset protocol. It makes a convincing case as the greatest hedging method available for some of the potential headwinds facing the legacy financial system.
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