Fidelity Digital Assets has drawn a line between Bitcoin and other currencies in its recent report The Rising Dollar and Bitcoin. It believes Bitcoin’s future may stand in stark contrast to the rest of the world.
Fidelity has once again reiterated its faith in the popular cryptocurrency despite the near year-long bear market. The firm’s analysts stated in the report how far Bitcoin has diverged from what is currently considered the norm. They highlighted the digital currency’s fixed issuance and supply as of particular importance. The report said Bitcoin may stand out in terms of the path, of increased supply and currency creation, it has taken. Fidelity emphasized the strength of the US dollar relative to other world fiat currencies, as well as the plunging British pound.
The firm believes more monetary debasement may be needed to alleviate the high debt load among developed economies. Moreover, recent events in the U.K. have shown counterparty and liability hazards in the system. Fidelity said Bitcoin remains one of the few assets that does not correspond to another person’s liability, has no counterparty risk, and has a supply schedule that cannot be changed. It noted that ultimately it’s up to investors and the market to decide. Fidelity is positive about the current state of BTC network which diverges from the nervousness of its crypto-sector peers. It foresees Bitcoin’s illiquid supply hitting a ten-year record and surging network fundamentals.
