Fidelity continues on its path to becoming the go to crypto bull asset manager with the release of its loving tribute to the world’s largest cryptocurrency, Bitcoin.  Covered: Fidelity Digital Assets Releases Bitcoin First Report Fidelity Says Bitcoin Is A Superior Form Of Money How Bitcoin Differs From Other Digital Assets Fidelity Digital Assets Releases […] The post Four Trillion Dollar Asset Manager Says Bitcoin Is Superior Money appeared first on CryptosRus.

Four Trillion Dollar Asset Manager Says Bitcoin Is Superior Money

Fidelity continues on its path to becoming the go to crypto bull asset manager with the release of its loving tribute to the world’s largest cryptocurrency, Bitcoin. 

Covered:

  • Fidelity Digital Assets Releases Bitcoin First Report
  • Fidelity Says Bitcoin Is A Superior Form Of Money
  • How Bitcoin Differs From Other Digital Assets

Fidelity Digital Assets Releases Bitcoin First Report

Fidelity Digital Assets, the crypto arm of Fidelity Investments, released a sprawling report today that details how exactly investors should think of Bitcoin compared to the rest of the crypto landscape. It’s yet another example of the asset manager’s deepening involvement in crypto.

Fidelity first began researching Bitcoin through The Fidelity Center of Applied Technology in 2014, before undertaking mining of the cryptocurrency in 2015.

The latest report focuses on giving overwhelmed investors clarity — there are some 8,000 cryptocurrencies currently — over what to invest in. Apparently, a lot of them are wondering if Bitcoin is going the way of the Dodo.

“One of the first concerns investors have regarding bitcoin is as the first digital asset it may be vulnerable to innovative destruction from competitors (such as the story of MySpace and Facebook).” To that Fidelity says, “Bitcoin is fundamentally different from any other digital asset. No other digital asset is likely to improve upon bitcoin as a monetary good…”

The basis for this is because Bitcoin shares a lot of the same characteristics as gold but improves upon it. Case in point: Bitcoin’s capped supply. 

Recommended: Fidelity Announces Bitcoin Spot ETF

How Bitcoin Differs From Other Digital Assets

“Bitcoin’s first technological breakthrough wasn’t as a superior payment technology but as a superior form of money,” Fidelity said via Twitter. “As a monetary good, bitcoin should be considered separately from other digital assets.”

In particular, Fidelity points out that that the rest of crypto exhibits venture capital-like properties. Meaning, investors should consider them the same way they would investing in Tesla. However, for example, cryptos like Algorand can be transacted with like money the same way Bitcoin can — you can’t do the same with stocks you buy on Robinhood. The implication here is the old Bitcoin “doesn’t have a CEO argument.”

It should be noted that the report goes to great pains to refer to these other cryptos as having venture capital like properties. It’s hardly an easy or catch way to say it. But it’s much appreciated code for stocks — which is also code for securities. It’s probably a good idea not to start putting any ideas into the SEC’s heads.

Despite giving the rest of crypto the uncatchy descriptor of Ventura capital-like, Fidelity did have positive things to say about two smart contract protocols. “Ethereum and Solana provide a great example of what is possible for a protocol that can attract a large amount of developers, build a usable platform, and gain a loyal network of users. When done right, there is clearly a lot of value that can be created for investors.”

Recommended: 4.2 Trillion Dollar Asset Manager Is Diving Head First Into Crypto And The Metaverse

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