Fidelity says Bitcoin is the Entry Point for Investors interested in the crypto sector. Fidelity’s new report follows up on the information published in early 2022 and concludes that investors should consider Bitcoin, the best investment choice among this asset class.
- They analyze the properties and “fundamental advantages” of the leading digital currency.
- They rate it as one of the best monetary assets.
- They point out that Bitcoin is the best option for crypto-interested investors.
The U.S. firm that figures as one of the giants in asset management, Fidelity, published a new report dedicated to examining and evaluating Bitcoin, reiterating some of the “fundamental advantages” that the digital currency entails for investors and interested parties.
As such, the report follows on from the one published early last year, which explored the characteristics of Bitcoin that make it “fundamentally different from other digital assets.” However, in this new installment, they highlight that digital currency has been gaining increased adoption and market share.
Evaluating the properties of Bitcoin
After going through an overview and differentiating the Bitcoin network from the digital currency, the 22-page report issued by Fidelity begins to highlight some operational considerations of the cryptocurrency, further highlighting its value as a monetary asset.
Compared to gold and fiat currencies, the report details that Bitcoin outperforms its competitors on indicators such as durability, divisibility, fungibility, portability, verifiability, and scarcity. However, it still has a short history and evolution compared to other assets.
They also exalt that Bitcoin has the potential to become the best monetary asset among existing digital assets, especially highlighting its dominance in the crypto market and its operational characteristics when compared to some of the most reputable cryptocurrencies in the sector.
One of the conclusions presented in the study exposes the following:
Bitcoin is different from any other digital asset. No other asset has the potential to improve on Bitcoin as a monetary good because Bitcoin is the most secure, decentralized, and robust digital money (compared to other digital assets), and any “improvement” will potentially face trade-offs.Fidelity Digital Assets
They also note, “You can best understand Bitcoin as a monetary asset, and one of the main investment theses for Bitcoin is as a store of value in an increasingly digital world.” They also add that you should evaluate projects other than BTC from a different perspective” than the one that applies to the leading digital currency.
Finally, after considering all the above, the article presents some conclusions favoring the leading digital currency, highlighting that Bitcoin “you should consider Bitcoin as an entry point for conventional investors looking to gain exposure to the crypto-asset sector.”
In closing, they present the following idea:
As a monetary asset, Bitcoin is unique. Therefore, investors should not only consider Bitcoin first to understand digital assets but also consider Bitcoin first and separate it from all other digital assets that follow.Fidelity Digital Assets