In its report entitled “Bitcoin First”, Fidelity Investments, a Boston-based US$4.3 trillion financial services corporation, argues that Bitcoin is fundamentally different from any other digital asset, and accordingly, must be evaluated separately.
Fidelity: Bitcoin is Different
In its 26-page report, Fidelity argues that Bitcoin is best understood as a monetary good whose primary investment thesis is as a digital store of value in “an increasingly digital world”.
No other digital asset is likely to improve upon bitcoin as a monetary good because bitcoin is the most (relative to other digital assets) secure, decentralised, sound digital money and any “improvement” will necessarily face tradeoffs.
Fidelity report
Importantly, the firm is not suggesting a zero-sum situation where only Bitcoin can be ascribed value:
There is not necessarily mutual exclusivity between the success of the Bitcoin network and all other digital asset networks. Rather, the rest of the digital asset ecosystem can fulfil different needs or solve other problems that bitcoin simply does not.
Fidelity report
Fidelity’s argument, quite simply, is that since other blockchain projects fulfil different purposes, they need to be evaluated from a different perspective.
Investors, according to Fidelity, “should hold two distinctly separate frameworks for considering investment in this digital asset ecosystem. The first framework examines the inclusion of bitcoin as an emerging monetary good, and the second considers the addition of other digital assets that exhibit venture capital-like properties.”
Echoes of Michael Saylor
Fidelity’s suggestion that Bitcoin combines the “scarcity and durability of gold with the ease of use, storage and transportability of fiat” is closely aligned with the view of Bitcoin permabull Michael Saylor, whose company MicroStrategy just yesterday bought another 660 BTC at an average price of US$37,875.
As reported by Crypto News Australia, Saylor recently went on a podcast explaining that Bitcoin is property and that everything else is a security. If you’re keen to explore Saylor’s argument further, go no further than his inspiring talk at Blockchance Europe 2021:
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