Bitcoin Represents Monetary Perfection, Fidelity Says
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1 February

The largest cryptocurrency by market capitalization — bitcoin (EXANTE: Bitcoin) — is unlikely to have a worthy competitor in the foreseeable future as it represents the highest level of decentralization and security, analysts at Fidelity Digital Assets, a subsidiary of Fidelity Investments focused on cryptocurrencies, wrote in a recent report. The experts doubt any cryptocurrency will improve upon bitcoin as a "monetary good" since any change will necessarily "face tradeoffs."

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While there is not mutual exclusivity between the success of the Bitcoin network and all other networks, a competitor that tries to fork Bitcoin's code is doomed to fail as there will be "no reason to switch from the largest monetary network to one that is completely identical but a fraction of the size," the analysts highlight.

"Investors should hold two distinctly separate frameworks for considering investment in this digital asset ecosystem," Fidelity says.

Fidelity Lobbying Bitcoin ETF in Private SEC Meeting

The report comes a few weeks after Fidelity Digital Assets forecasted a state level adoptions for bitcoin as more sovereign nation states will acquire the cryptocurrency in 2022. The analysts believe that more countries will inevitably "forced" to acquire some as a "form of insurance," citing the cryptocurrency.

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