Fidelity Digital Assets (FDA), the digital asset arm of leading asset manager Fidelity Investments, said in its report that Bitcoin is a superior form of money compared to other digital currencies.
New Investors Should Consider Bitcoin
In a 26-page report published by the digital asset arm of Fidelity, new investors seeking to gain exposure to cryptocurrencies need to consider Bitcoin separately from other digital currencies.
“Other non-bitcoin projects should be evaluated from a different perspective than bitcoin,” the report read.
FDA noted that while bitcoin cannot be considered a better payment method, the asset has proven to be a monetary good and a store of value for investors over the years.
With Bitcoin fundamentally different from other cryptocurrencies, FDA said no existing digital asset project can successfully improve on it as a monetary good.
The company stated that any form of improvement on Bitcoin as a monetary good would face tradeoffs because BTC is the most decentralized, secure, scalable, and sound digital money.
Bitcoin Luring Traditional Investors
Aside from Fidelity urging new crypto entrants to consider Bitcoin as a monetary good, the company said the leading cryptocurrency should be seen as an entry point for traditional financial investors seeking to gain exposure to digital assets.
Meanwhile, Fidelity Investments is one of the crypto-related companies seeking to onboard traditional investors into the market.
In November, Fidelity launched a spot Bitcoin exchange-traded fund (ETF) in Canada. The multinational financial services firm also announced last month that it would be allocating a small percentage of its Bitcoin ETF to two of its largest funds.
Bitcoin Mainstream Adoption Surges
In recent times, interest in Bitcoin has surged tremendously, with investors, including institutional and corporate clients, seeking to gain exposure to the asset class as a hedge against inflation.
Bitcoin’s outstanding features as a store of value have also prompted the cryptocurrency to be adopted in major cities and countries.
Recall that El Salvador made a ground entrance into the cryptosphere last year by adopting bitcoin as a legal tender. The development prompted the country to purchase BTC on several occasions.
Similarly, Miami also announced several Bitcoin-related initiatives for the city, including converting 1% of the city’s treasury to bitcoin, paying workers’ salaries using the cryptocurrency, as well as accepting taxes in BTC.