Fidelity, the multinational brokerage giant, has published a paper on Bitcoin (BTC) titled “Bitcoin First.” The financial service provider encourages you to value BTC separately from other digital assets.
The paper argues that BTC is fundamentally different from the hundreds of other digital assets circulating in the market, and it is unlikely that any digital asset will ever surpass the best cryptocurrency as a “monetary commodity.”
Fidelity describes Bitcoin as an excellent form of money, not just a technology. It is the most secure and decentralized form of the asset, and any “improvement” has to meet the trade-offs.” The paper said:
“Bitcoin clearly has many good qualities for money, combining the rarity and durability of gold with the ease of use, storage and transportation of fiat currencies.”
The global financial services provider believes that BTC has all the characteristics of a trusted form of money, as it has no entity to manage it, does not pay dividends and has no cash flow. The rarity and decentralized nature of Bitcoin only enhances its properties as an ideal monetary tool.
“We are not going to be so bold as to expect that there will only be one money, but we do believe that one economic good will dominate the digital asset ecosystem due to the very strong influence of networks.”
Related: The Bitcoin Cycle Isn’t Over Yet, Miners Are Engaged in the Long Term: Fidelity Report
Fidelity considers BTC as an entry point for traditional investors in the digital asset market and suggests that investors use two separate schemes to invest in digital assets: one should focus on Bitcoin as a monetary asset (the asset class), and the other should focus on the other digital assets, which exhibit similar characteristics to capital. investment.
Satoshi Nakamoto, the pseudonym of the creator of Bitcoin, also aims to make it a trusted form of money, and Bitcoin advocates have been debating the same thing for a decade. However, the fact that the global financial services provider regards BTC as the best form of money may be a sign of broader adoption in the future.