Fidelity highlights bitcoin as the premier digital currency

Fidelity highlights bitcoin as the premier digital currency

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Asset management behemoth Fidelity recently published a report highlighting the superiority of Bitcoin over all other digital assets.

Fidelity’s recently published its latest report titled “Bitcoin First Revisited: Why investors need to consider bitcoin separately from other digital assets.”

Fidelity is a multinational financial services corporation with $4.2 trillion assets under management. The recent report highlights how bitcoin is a completely separate cryptocurrency from all other digital assets.

Bitcoin is a monetary good

The paper lays out Fidelity’s view that no other digital asset is likely to usurp bitcoin given its high level of security, decentralisation, and its role as sound digital money.

One of the main threads of the report is that Bitcoin is a “monetary good”, and that it fulfils the characteristics of “good money” in that it is durable, divisible, fungible, portable, verifiable, and scarce. The only characteristic that Bitcoin cannot yet fulfil is that given its young age, it cannot say that it has a long “track record”.

Source: Fidelity Digital Assets Report

Gold, Bitcoin and fiat currency are all compared with each other for all these characteristics, and Bitcoin comes top with 6 (all but the track record), gold has 4 (falling down on divisibility, portability, and verifiability), while fiat currency has only 2, which are divisibility and portability.

Bitcoin isn’t scarce, it’s finite

It might have been added, although it wasn’t, that as far as the track record goes, all fiat currencies in the history of the planet have gone to zero, and relating to scarcity, Bitcoin isn’t really scarce, it’s finite, given that only 21 million bitcoins will ever be minted. On this note, the report noted the following on Bitcoin’s decentralisation:

“No one person, corporation, or government owns or controls the Bitcoin network or the rules that govern it. As a completely decentralized network that is running opensource code, the network participants must adhere to the code’s rules that govern the network. The 21 million supply cap was written in the original Bitcoin source code, which continues to run the Bitcoin network today.”

Fidelity has the belief, stated in the report, that “Bitcoin has the potential to be the primary monetary good”, stating that it’s not certain that Bitcoin will be the only money in the future, but that it will rise to dominate all others.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice. 

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