In a new report published by Fidelity Digital Assets, the multinational brokerage giant has argued that Bitcoin is a “superior form of money” that could be the “primary monetary good” and that its technological breakthrough was based on that superiority, and not as a superior payment technology.
As reported by Cointelegraph, Fidelity’s report titled “Bitcoin First” calls for investors to treat the flagship cryptocurrency separately from the rest of the cryptocurrency market, arguing it is fundamentally different from everything else out there.
The report notes no other digital asset is likely to overtake the cryptocurrency as a “monetary good,” as BTC is the most “secure, decentralized form of asset.” Any improvement other cryptoassets make upon it necessarily involves tradeoffs.
Cryptocurrency investors have often likened BTC to a form of digital gold, at some points calling it “gold 2.0.” Fidelity seemingly agrees with the assessment:
Bitcoin clearly possesses a lot of good qualities of money, combining the scarcity and durability of gold with the ease of use, storage and transportability of fiat.
To Fidelity, Bitcoin having no organization behind it and being the first cryptocurrency to exist means it could dominate the digital asset ecosystem “due to the very powerful effects of networks.” To the firm, BTC is an entry point for traditional investors into the space.
As CryptoGlobe reported, sentiment surrounding BTC has been rather negative over the last few weeks. Analysts at JPMorgan Chase, for example, have lowered their long-term bitcoin price target of $150,000 to $38,000 after the price of the flagship cryptocurrency dropped from a $67,000 all-time high to a $34,000 low before recovering.
Most of JPMorgan’s clients, however, have revealed they see the price of Bitcoin surpass the $60,000 before the end of this year, with 41% saying the cryptocurrency will trade at that level by the end of the year, 9% seeing it above $80,000 and 5% calling for $100,000.
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