” bitcoin-first » – Here is the title of the latest publication of the investment company Fidelity about the cryptocurrencies. This report aims to respond to two specific questions from their customers about Bitcoin: can it be replaced by another crypto ? And is there one upside potential in the medium and long term? Fidelity responds to both Yes and no, all in once again showing all his optimism towards the first of the cryptos. This management fund continues to praise its qualities to its partners but also to the states.
Why Bitcoin is Superior to Other Cryptos in Many Ways
Chris Kuiper is the head of research at Fidelity Digital Asset, a subsidiary specializing in digital asset management. To promote the release of their latest report, he gave an interview to the online media Cointelegraph which published the good words. The investment fund is resolutely confident and demonstrates it, supporting arguments. To begin with, they explain how Bitcoin is unique and why, according to them, it cannot be replaced:
” (…) it is a unique value proposition in that it is the most decentralized and censorship-resistant network. It is a real breakthrough innovation similar to the invention of the wheel. (…) We cannot reinvent something that has already been invented in terms of security, decentralization (…) It is the only real monetary asset among all digital assets. »
Moreover, Bitcoin is both a monetary exchange system resilient and efficient but also a store of value. No other cryptocurrency offers the same. Chruis Kuiper concedes that in the trilemma inherent in every blockchain, Bitcoin fishes on the scalability side – so fast. But to store the savings of a life, do you prefer a network less secure ? Less decentralized ? Or Slower ? The answer is obvious!
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Why it is still interesting to invest in Bitcoin
” Solana made +4000% this year! Terra +15000%! Why invest in Bitcoin which is only +40%? To answer this question, Fidelity begins by ironically saying “only 40%”… They point out that in traditional finance, this figure would be stratospheric! So yes, there are cryptos with much greater upside potential. But they also come with a much greater risk. ” We have a 13 year decline in Bitcoin and we see volatility tending to crash“, which is why it is now considered a “good family man” investment – or “mother” to debunk sexist expressions.
Finally, projecting into near futureFidelity is considering two possible scenarioss. A first multi-blockchain where several systems coexist next to each other. And another, the winner-takes-all, where a single blockchain wins the bet. Well, imagine that in both cases Bitcoin would be the big winner ! In the earliest possible future, Bitcoin would be a “ monetary anchor ” because :
” Ultimately what would give value to these other tokens or projects is that they could somehow be pegged to Bitcoin or converted back to Bitcoin”
In the second, all the applications would be built on the Bitcoin blockchain. And the other projects would end up in the dustbin of history. Ultimately, regardless of the future system in place, Fidelity imagines great upside potential for Bitcoin.
In just 20 minutes of interview, Chris Kuiper puts Bitcoin back in the middle of the village! Yes, it is the keystone of the ecosystem, whatever its detractors and the communicators of the new blockchains faster than light say. Yes it is always economically profitable to accumulate. What give some regrets when we remember that just 10 years ago, a bitcoin cost 1 dollars.
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