CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • Fund
  • Buy
  • Language
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • bitcoin
    BTC$35,990.00
  • ethereum
    ETH$1,230.68
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    Home » Crypto News » Bitcoin Too Volatile to be a Store of Value: Fidelity Crypto Boss

    Bitcoin Too Volatile to be a Store of Value: Fidelity Crypto Boss

    Author: Himadri Saha

    Last Updated Dec 4, 2020 @ 09:38

    Bitcoin holds the potential to be a store of value but is not there yet because of its explosive volatility, feels the head of Fidelity Digital Assets.

    Fidelity Investments has been a frontrunner in exposing its customers to the bitcoin and cryptocurrency asset class. But the head of the multi-trillion-dollar asset management firm’s digital asset arm Tom Jessop thinks BTC is ‘not quite there’ as a store of value because of its sporadic volatility.

    Bitcoin Is A ‘Potential Store Of Value’ Not An Actual One

    Speaking to the Reuters Global Investment Outlook Summit 2020, Jessop, the lead at Fidelity Digital Assets, said that bitcoin has still not attained the ‘store of value’ status. But BTC investors are nonetheless optimistic that one day it will.

    We use the word ‘potential store of value’ as bitcoin is still extremely volatile, and by any standard perhaps would not achieve the mantle of a true store of value… But aspirationally it is, and that’s one of the reasons why so many investors are now thinking about this space constructively.

    This argument makes sense as the top cryptocurrency’s price action has been nothing less than a roller coaster ride. In a span of just 8 months (since March’s Black Thursday crash), bitcoin has logged near 400 percent gains. But in its relatively nascent existence, BTC had also lost value upwards of 90 percent (after the 2017 boom).

    Still, the asset has experienced an upsurge in demand due to its inflation-resistant nature.

    With governments and central banks in full stimulus mode, some observers reckon bitcoin is a useful safeguard against inflation. Since supply is capped at 21 million, these people believe its scarcity gives it an innate value.

    Tom Jessop. Source: Modern Consensus
    Tom Jessop. Source: Modern Consensus

    But Fidelity Is Knee Deep Into Crypto, Especially BTC

    Tom Jessop may have reservations against bitcoin’s store of value narrative. But his company nonetheless is touting the asset in every major way possible.

    As reported by CryptoPotato, Fidelity released its Bitcoin Investment Thesis in October. The document presented compelling arguments as to why a trillion-dollar BTC market is not totally out of the question. The Boston-based firm observed that bitcoin’s strength lies in its low correlation with any other asset within an investment portfolio.

    This, according to Fidelity, presents a favorable scenario for investors. As for them, bitcoin becomes an alternative asset. One that allows holders to protect their wealth by exposing themselves to a commodity for which the risk doesn’t depend on what happens to other markets.

    Also, the fund management firm with an AUM worth $3.3 trillion partnered with Singapore based Stack Funds to enable wealthy Asian investors to freely and securely buy bitcoin.

    According to a recent report, Stack Funds will make Fidelity’s secure custody services available to its clients, primarily based in Asia. Stack further explained that all assets under its management would be audited monthly. The firm will provide insurance coverage, weekly contributions, and redemptions to enhance capital security.  

    Enjoy reading? Please share:
    Facebook Twitter LinkedIn Telegram
    SPECIAL OFFER (Sponsored)
    Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

    PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO35 code to get 35% free bonus on any deposit up to 1 BTC.

    You Might Also Like:

    • Fidelity
      Fidelity's Crypto Subsidiary Targets Asian Investors To Buy Bitcoin
    • paypal_crypto_bitcoin-min
      The Good and The Bad About Cryptocurrency on PayPal
    • jail_cover
      PlusToken Crypto Scammers Slammed With 11-Year Jail Sentence
    Read more on: Bitcoin Fidelity

    About The Author

    Himadri Saha View more posts by this author

    Himadri’s love affair with cryptocurrencies began in 2016. Since then he has been a vocal proponent of crypto as a robust investment alternative to traditional options. Himadri believes that art and code can redefine the way we look at life. Contact Himadri: LinkedIn

  • bitcoin
    BTC$35,990.00
  • ethereum
    ETH$1,230.68
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    ADVERTISEMENT
    binance
    Bitcoin Editorials
    Ethereum 2.0 Staking on Exchange vs. Creating Your Node: What You Need to Know

    Ethereum 2.0 Staking on Exchange vs. Creating Your Node: What You Need to Know

    5 Possible Reasons For Bitcoin’s Price Surge Over $30,000

    5 Possible Reasons For Bitcoin’s Price Surge Over $30,000

    2020 Year In Review: Bitcoin’s Journey From $3800 To Nearly $30K

    2020 Year In Review: Bitcoin’s Journey From $3800 To Nearly $30K

    6 Reasons For The Ongoing Bitcoin Bull-Run Beyond $20K

    6 Reasons For The Ongoing Bitcoin Bull-Run Beyond $20K

    Is Blockchain The Answer To COVID-19 Led Misinformation and Rumor Mongering?

    Is Blockchain The Answer To COVID-19 Led Misinformation and Rumor Mongering?

    Join Our Newsletter
    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!
    About
    Advertise on CryptoPotato
    About Us | Contact Us

    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    Cannabis Stocks News | Market Analysis
    Disclaimer
    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!