Fidelity discusses the future of the crypto ecosystem-says that Bitcoin is a superior form of money-featured
Fidelity discusses the future of the crypto ecosystem-says that Bitcoin is a superior form of money-featured
Fidelity Digital Assets has published a report that explains why Bitcoin is a superior form of money. The report discusses the future of the ecosystem of digital assets and compares Bitcoin with newer and smaller cryptocurrencies.
fidelity says "Bitcoin first"
fidelity Digital Assets, a subsidiary of Fidelity Investments, published a report this week entitled "Bitcoin First: Why investors have to look at Bitcoin separately from other digital assets".
The report addresses some concerns of investors, including the question of whether Bitcoin could be "susceptible to innovative destruction by competitors (such as the history of MySpace and Facebook)" or whether the cryptocurrency "offers the same potential gain or advantage as some of the newer and smaller digital cryptocurrencies."
The authors of the report, Chris Kuiper and Jack Neureuter, explained:
Traditional investors usually apply a framework for technology investments on Bitcoin, which leads to the conclusion that Bitcoin as a first-mover technology can be easily replaced by a superior technology or achieves lower returns.
You stated: "Bitcoin is currently the safest and most decentralized network, but at the basic or native network level it is not the most scalable." This continued to a boom in the digital asset ecosystem.
The report continues to discuss two prevailing narratives to imagine the future of the ecosystem of digital assets.
The first is "a world with several chains". The authors described: "In a world with several winning chains, Bitcoin still seems to be best equipped in order to fulfill the role of the non-state money goods of the ecosystem with relatively less competition than other digital assets that try to meet alternative applications."
The second is a "Winner-Takes-All Or Most World" narrative. The report explains: "In view of the fact that Bitcoin is probably the most decentralized and unchangeable blockchain that exists, it seems to be a main candidate to be one of the only winners if this situation should develop."
According to the discussion of various aspects of Bitcoin, including the Bitcoin network, "its forced scarcity", the Lindy effect, the blocksize war, the Lightning Network and Ethereum, wrote the authors:
The first technological breakthrough of Bitcoin was not as a superior payment technology, but as a superior form of money. Bitcoin is unique as a monetary asset.
"That is why we not only believe that investors should first consider Bitcoin to understand digital assets, but that Bitcoin should be viewed first and separately from all other digital assets that came afterwards," concludes the fidelity report.
Do you agree to Fidelity in terms of Bitcoin? Let us know in the comment area below.
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