Investors underestimate Bitcoin’s “huge upside potential”, Fidelity researcher says

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Chris Kuiper, Head of Research at Fidelity Digital Assets, is convinced that Bitcoin (BTC) should be viewed separately from other digital assets and believes it plays an exceptional role in investors’ portfolios.

Entitled “Bitcoin First,” the latest report from Fidelity Digital Assets addresses the two main concerns expressed by Fidelity customers about BTC – its eventual exchange for some other cryptocurrency and its lower upside potential compared to other altcoins.

According to Kuiper, BTC offers a unique value proposition as the most decentralized and censorship-resistant cash network. This, he says, is a non-gradual kind of innovation akin to inventing the wheel.

“You cannot reinvent what has already been reinvented in terms of the most secure, decentralized and what we consider the best financial assets in the digital asset space,” he said.

While other cryptocurrencies may have higher bullish potential, Kuiper noted, they are also subject to higher risks and should be considered venture capital games.

Kuiper believes that regardless of the future development of the blockchain ecosystem, BTC is likely to emerge victorious. In a multi-chain scenario where many blockchains exist side by side, Bitcoin will continue to be the most important “cash anchor” for other digital assets.

“At the end of the day, the value of these tokens or other designs is that they can somehow be linked to bitcoin or converted back into bitcoin,” he explained.

Kuiper believes that in a win-win scenario, BTC is likely to become a protocol for building the majority of blockchain applications.

Kuiper also notes that thirteen years of BTC existence has significantly reduced the risk of loss associated with investing in BTC. On the other hand, the upside could be significant, especially if gold gradually replaces gold as a valuable stock.

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Source: CoinTelegraph

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