Fidelity is an American multinational financial services corporation situated in Boston, Massachusetts. Recently the financial service corporation, Fidelity issued a paper that is named “ Bitcoin First.” In the paper, the financial service corporation, Fidelity wants to consider Bitcoin separately from the other digital currencies. s
Further, Fidelitys’s paper stated that bitcoin is different. As compared to other digital assets presently trading in the digital assets markets. And no such digital asset exists that can overtake the top cryptocurrency “as a monetary good”.
Why Fidelity’s Issued Paper Believes In Bitcoin:
Moreover, Fidelity’s paper dubbed Bitcoin as a superior form of money, and it is more than just tech. Also, it is the most “secure, decentralized form of asset and any “improvement” will necessarily face tradeoffs.”
“Bitcoin clearly possesses a lot of good qualities of money, combining the scarcity and durability of gold with the ease of use, storage, and transportability of fiat.”
Additionally, the financial service corporation, Fidelity believes that Bitcoin contains all the properties of being a sound form of money. As it doesn’t have any entity that is operating it. Also, it doesn’t pay a dividend or has cash flows. Further, the scarcity and decentralized nature of Bitcoin only add to its qualities of being an absolute “monetary tool”
“We won’t be so bold as to predict there will only ever be one money, but we do believe that one monetary good will come to dominate the digital asset ecosystem due to the very powerful effects of networks.“
However, the financial service corporation, Fidelity sees bitcoin as an entry point for traditional investors into the crypto market. And advised that investors should follow two frameworks for investing in digital assets. The first one should be focusing on Bitcoin as a monetary good (Asset class). And the second one must be focused on the remaining digital assets that presented venture capital-like qualities.
Although, Satoshi Nakamoto, the anonymous developer of Bitcoin, also planned it to be a sound form of money, as well as its supporters have had a similar debate for a decade.
Doubtlessly, the multinational financial service corporation, Fidelity believes that bitcoin is a superior form of money. Also, it could be the massive adoption of the mainstream in the future.
The News source is Cointelegraph.
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