Fidelity Discusses Future of Crypto Ecosystem — Says Bitcoin Is ‘a Superior Form of Money’

Fidelity Discusses Future of Crypto Ecosystem — Says Bitcoin Is "a Superior Form of Money"

Fidelity Digital Assets has released a report explaining why bitcoin is a superior form of money. The report discusses the future of the digital asset ecosystem and compares bitcoin to newer and smaller cryptocurrencies. Fidelity Says ‘Bitcoin First’

Fidelity Digital Assets, a subsidiary of Fidelity Investments, published a report this week titled “Bitcoin First: Why investors need to consider bitcoin separately from other digital assets.”

The report addresses some concerns investors have including whether bitcoin “may be vulnerable to innovative destruction from competitors (such as the story of Myspace and Facebook)” or whether the cryptocurrency “offers the same potential reward or upside as some of the newer and smaller digital assets.”

Report authors Chris Kuiper and Jack Neureuter explained: Traditional investors typically apply a technology investing framework to bitcoin, leading to the conclusion bitcoin as a first-mover technology will easily be supplanted by a superior one or have lower returns.

They noted, “Bitcoin is currently the most secure and decentralized network but, at the base or native network layer, it is not the most scalable.” This has led to a boom in the digital asset ecosystem, they continued.

The report proceeds to discuss two dominant narratives for envisioning the future of the digital asset ecosystem.

The first is “a multi-chain world.” The authors described: “In a world of multiple winning chains, it still appears that Bitcoin is likely the best equipped to fulfill the role of the ecosystem’s non-sovereign monetary good with relatively less competition than other digital assets attempting to fulfill alternative use cases.”

The second is “a winner-take-all or most world” narrative. The report details: “Given that Bitcoin is arguably the most decentralized and immutable blockchain in existence, it appears as a prime candidate to be one of, or perhaps even the sole winner if this situation were to play out.”

After discussing various aspects of Bitcoin, including the Bitcoin network, “its enforceable scarcity,” the Lindy Effect, the blocksize war, the Lightning Network, and Ethereum, the authors wrote: Bitcoin’s first technological breakthrough was not as a superior payment technology but as a superior form of money. As a monetary good, bitcoin is unique.

“Therefore, not only do we believe investors should consider bitcoin first in order to understand digital assets, but that bitcoin should be considered first and separate from all other digital assets that have come after it,” the Fidelity report concludes. Tags in this story Bitcoin money, Bitcoin payment system, Bitcoin Superior form of money, Bitcoin vs other cryptocurrencies, digital asset ecosystem, fidelity, Fidelity Digital Assets, Fidelity Investments, future of bitcoin, future of digital asset ecosystem

Do you agree with Fidelity about Bitcoin? Let us know in the comments section below. Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. Microstrategy Buys 660 More Bitcoins —Total Holdings Rise to 125,051 BTC FEATURED | 1 day ago Deloitte: 82% of Indians Surveyed Plan to Invest in Crypto Once Government Provides Regulatory Clarity FEATURED | 2 days ago

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleWormhole Network’s Cross-Chain Bridge Exploited for Over $250 Million in Ethereum Next articleThailand Relaxes Tax Rules for Crypto Investors, Scrapping 15% Withholding Tax Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItBlockchain and Cryptocurrency Is "Here to Stay and Impossible to Regulate at Large" — CEO of a United Arab Emirates Based Bank

According to the chief executive officer (CEO) of the United Arab Emirates-based financial institution, Bank of Sharjah, blockchain and cryptocurrencies are not only difficult to regulate but are also here to stay. Despite this prediction, the CEO admits that many ... read more.Weekly NFT Sales Drop 13% While Crypto Prices Rebound From Market Rout Ark Invest Expects Bitcoin to Exceed $1 Million by 2030 — Says BTC Could Transform Monetary History Apple on Metaverse: We See a Lot of Potential and Are Investing — CEO Tim Cook Says "It"s Very Interesting to Us" Study: US Financial Advisors Expect Proportion of Crypto Holding Clients to Increase by 60%