Fidelity Digital Assets publishes its Bitcoin first report and calls BTC a superior form of money
Fidelity Digital Assets publishes its Bitcoin first report and calls BTC a superior form of money
- fidelity praises Bitcoin and says that "monetary network effects" are unbeatable.
- it says that the first technological breakthrough of Bitcoin was not as a superior payment technology, but as a superior form of money.
On Monday, January 31, Fidelity Digital Assets, the crypto branch of Fidelity Investments, published a new report entitled "Bitcoin First". The crypto giant divides its views on Bitcoin and why it is treated differently than all other digital assets.
The report begins with a basic and non-technical overview of how the Bitcoin ecosystem works. It continues to explain the “enforceable scarcity” of Bitcoin and why the “monetary network effects” of Bitcoin are unbeatable. Loyalty writes:
Bitcoin differs fundamentally from any other digital asset. No other digital asset will probably improve Bitcoin as a monetary one, since Bitcoin (compared to other digital assets) is the safest, most decentralized and solid digital money and every "improvement" is inevitably connected to compromises
The Fidelity report also explains that one of the main areas from which Bitcoin derives its value is the scarcity. The fixed offer of Bitcoin also gives cryptocurrency the ability to become a value preservation means.
fidelity also believes that Bitcoin's scarcity is due to its decentralization and its censor -resistant properties. The test report adds: "These properties are not changed in bitcoin, Since the same people who attribute Bitcoin and have no incentive to do so.
Bitcoin-a superior form of money
In the latest report, Fidelity mentions that the special thing about Bitcoin is not its technological framework, but is called BTC as a superior form of money. In contrast to other analysts and governments that refuse to recognize Bitcoin as a money form. It states:
Traditional investors usually apply a framework for technology investments on Bitcoin, which leads to the conclusion that Bitcoin as a first-mover technology can easily be replaced by a superior technology or achieves lower returns. As we argued here, the first technological breakthrough of Bitcoin was not as a superior payment technology, but as a superior form of money.
As a monetary asset, Bitcoin is unique. Therefore, we not only believe that investors should first consider Bitcoin to understand digital assets, but that Bitcoin should be viewed first and separately from all other digital assets that came afterwards.
In the report, Fidelity also responds to the risks associated with the use of Bitcoin. However, it adds that this is common to all cryptocurrencies and not just Bitcoin. Fidelity emphasizes some of the risks, such as "protocol errors", "nation-state attacks", "growth of the digital asset ecosystem" and "potential instability of traditional macro conditions".
fidelity also praises Bitcoin's governance structure and says that it offers a higher level of decentralization.
Source: Crypto-news-flash.com
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