Fidelity digital assets, a subsidiary of the billionaire investment firm Fidelity Investments, regards Bitcoin (BTC) as a “targeted store of value” and an “insurance policy” against a struggling financial system, according to a new report.
Fidelity has assets of more than $ 8 billion and The Digital Assets division was founded in October 2018.
Bitcoin is a “store of value with aspirations”
The Bitcoin Investment Thesis: A Store of Aspirational Value report points this out Bitcoin meets the basic test to be considered a store of value, but has not yet reached this status::
“Many investors view Bitcoin as a coveted store of value because it has the features of a store of value, but has not yet been widely accepted as such.”
The basic components that determine its potential as a store of value lie in the “network of decentralized settlements and its digitally scarce domestic assets”.. Bitcoin’s volatility, which is often used in arguments against a store of value, can be seen as beneficial for launch, as it “draws attention, development, and innovation,” the report said.
According to John Pfeffer from Pfeffer Capital LP, quoted in the report: “Most people around the world still don’t see Bitcoin as digital gold. As soon as people see it differently, the price will adjust. “
Bitcoin is an “insurance policy”
The report also addresses and suggests concerns about money printing as a result of the financial crisis caused by COVID-19 Some lose confidence in traditional economies::
“The unknown consequences of unprecedented interest rates, unprecedented global monetary and fiscal incentives and deglobalization are fueling the fire of awareness and adoption.”
John Vincent of Wakem Capital Management referred to money pressure given the recent halving of Bitcoin. “”You don’t have to be a doctor to understand that the number of dollars has doubled while the supply of BTC has been halved“said.
Another catalyst for adoption, according to the report, is the transfer of wealth from the older generation to a younger population group, as “young people see Bitcoin cheaper“”