Bitcoin is an “aspirational store of value” according to a new report from global investment powerhouse Fidelity.
Fidelity Digital Assets, a subsidiary of Fidelity, says that as the cryptocurrency matures is may serve many functions, “either foundationally or through incremental layers”.
The report states: “It is still undetermined whether the underlying [Bitcoin] blockchain is best used to facilitate wholesale clearing and settlement, consumer payments or the anchoring and timestamping of arbitrary data.
“The truth is, as the ecosystem matures, Bitcoin may simultaneously serve many functions – either foundationally or through incremental layers.
“One of the beautiful things about Bitcoin is that its success is not predicated on serving a singular purpose.”
The far-reaching report, available here, was produced after the authors carried out interviews with many top investors and key thinkers in industry.
According to the report, many investors consider Bitcoin to be an aspirational store of value – it has properties of a store of value but has yet to be widely accepted as such.
Scarcity is a key characteristic of a good store of value and is essential for protecting against depreciation. There will only ever be 21 million, and many of these have already been irretrievably lost, further diminishing the supply.
The report states that “one of Bitcoin’s most novel innovations is its unforgeable digital scarcity.”
The “unknown consequences of record low interest rates, unprecedented levels of global monetary and fiscal stimulus and deglobalization are all adding fuel to the fire of [Bitcoin] awareness and adoption,” it continued.
Longer term drivers include “slow and steady inflation and great wealth transfer to a millennial demographic that has a favourable opinion on digital assets”.
The report adds that anyone considering including Bitcoin to their portfolio should consider the following: “The rationale of investors for establishing exposure now it that it will be a much larger market if it is widely used as a store of value in the future.”
MORE NEWS & ARTICLES
- The Best Legit Faucets To Earn Free Bitcoins And Satoshi Fast In 2021
- End of An Era: CoinPot Microwallet and Bitcoin Faucets Close Down
- Man Who Threw Away $300 Million in Bitcoin Offers Huge Reward to Get It Back
- ‘Non-zero’ Crypto Addresses Surge as Institutional Investors Pile into Bitcoin
- Almost $1 billion in Bitcoin Linked to The Notorious Silk Road Website Has Just Moved
- Cuba is the New Bitcoin Hotspot as Citizens Embrace Cryptocurrency
- PayPal Embraces Bitcoin – Payment Giant to Offer Crypto Spending
- Nigeria Leads the World When it Comes to Adopting and Using Bitcoin
- Are Legions of Young People About to Pour Their Pocket Money Into Bitcoin?
- Banks Associating Bitcoin with Crime Linked to $2 Trillion in Dirty Money