Bitcoin is the most secure, decentralized and scarce cryptocurrency in the world. This is stated in a new study from Fidelity Digital Assets.
Experts noted the continued adoption of digital gold amid significant headwinds faced by other assets in the sector. This is manifested in an increase in the ecosystem’s audience and a growing share in investment portfolios.
Below are the main points of the study:
- Bitcoin is best understood as a monetary commodity, a store of wealth in an increasingly digital world.
- The first cryptocurrency is fundamentally different from any other asset in the sector. Competitors cannot compete in such aspects as security and decentralization. Bitcoin is perceived as reliable digital money. Any attempt to “improve” these properties will require compromises.
- There is not necessarily mutual exclusivity between the success of the Bitcoin network and other blockchains. Rather, the rest of the ecosystem may serve different needs or solve other problems that digital gold simply doesn’t address.
- Other non-Bitcoin projects should be assessed from a different perspective than the first cryptocurrency.
- Digital gold should be considered as an entry point for traditional investors looking to gain exposure to the sector.
- Investors must take two very different approaches when considering ecosystem investments. The first is to perceive Bitcoin as an emerging monetary commodity. The second is to consider adding other digital assets that have similar properties to venture capital.
At the end of June, Fidelity filed to launch a spot Bitcoin ETF, giving its clients a regulated instrument tied to the first cryptocurrency.
Recall that ex-BlackRock director Stephen Schonfield suggested that SEC will approve the instrument within three to six months.
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