Fidelity Digital Assets: Bitcoin is “Insurance Policy”

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  • Fidelity Digital Assets has released a report on Bitcoin in which is calls the cryptocurrency an “insurance policy” against monetary mismanagement by governments
  • The reports plays up Bitcoin’s baked in scarcity in comparison to fiat money printing
  • Fidelity launched its crypto investment arm in May last year

Fidelity Digital Assets, the cryptocurrency arm of the famous investment house, has released a report on Bitcoin in which it calls it an “insurance policy” against the “unprecedented levels and exotic forms of monetary and fiscal stimulus” occurring across the globe. The Fidelity Digital Assets report, the first in a series on the cryptocurrency, is possibly the most pro-Bitcoin report yet published by an institutional investment firm and illustrates the metamorphosis Bitcoin has undergone in the last 12 months alone.

Bitcoin an “Aspirational Store of Value”

The Fidelity Digital Assets report states that Bitcoin is becoming “increasingly integrated with traditional markets and portfolios”, something that was almost unheard of until recently, and notes that it represents different things to different people, stating that it “may simultaneously serve many functions” before settling on one role, if it ever does.

Calling Bitcoin an “aspirational store of value”, the report makes a big play of Bitcoin’s inbuilt scarcity, especially in relation to the rampant fiat money printing going on around the world in order to help get economies back on their feet, which has seen the comparative value of currencies like the U.S dollar evaporate. The report also notes that, despite its initial volatility, Bitcoin has a “slow and steady” inflation driver thanks to its regular halvings and that its chief goal is to mature into a store of value for a digital age.

Fidelity Digital Assets Flies the Bitcoin Flag

The report is possibly the most bullish ever published by an institutional investment house on the subject of Bitcoin and highlights the reputational transformation Bitcoin has undergone in recent months. The money printing campaigns undertaken by federal governments has thrust Bitcoin’s inherent scarcity and deflationary mechanisms into the spotlight, leading to much more institutional interest and understanding.