Bitcoin cycle is far from over and miners are in it for the long haul: Fidelity report

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Fidelity Digital Assets. Fidelity Investments manages a set of $ 4.2 trillion cryptocurrencies in assets that have divided two “groups” over the future of the digital assets area. The highlights were about the behavior of miners and the introduction of the Bitcoin (BTC) network.

In the annual report published last week, the group shared some insights into the world of bitcoin mining:

“Because bitcoin miners have the greatest economic incentive, the best guess at the adoption and value of BTC (…) is that the current bitcoin cycle is not over yet, and these miners are investing in the long run.”
The report said that the hash-rate recovery in 2021 was “truly amazing,” especially when you consider that the world’s second largest economy, China, banned bitcoin in 2021. Restoring hash rates after bans thanks to BTC hash power. distributed “on a large scale around the world”, showed that miners earn long-term.

The data is in line with the latest sales results for miners. The key indicator on the chain shows that Bitcoin miners are in “huge” BTC accumulation mode as miners show no desire to sell.

Related: Fidelity boss says Bitcoin is ‘technically oversold’, earning $ 40,000 ‘key support’

As for whole countries with orange beans, Fidelity came up with some interesting predictions that more nation states will accept BTC as a legal tender:

“It is a high-stakes game theory here that if bitcoin adoption increases, countries that offer some bitcoin today will be more competitive than their counterparts. Therefore, we will not be surprised if other sovereign states receive bitcoins in 2022. And we can and even see the central bank make an acquisition. ”
Their comments come after a former Tongan MP suggested that the country could accept BTC at the end of 2022.

Essentially, increased regulation and better products will open up the crypto area, “bringing as much as possible out of hundreds of trillions of traditional assets into the digital asset ecosystem.” Combined with a horde of miners, this could extend the cycle and take BTC to new heights.

Source: CoinTelegraph

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