Fidelity's Head of Research Argues About Bitcoin's 'Upside Potential' Being the Less Risky Investment
Kuiper believes that Bitcoin (VTC) must be treated uniquely from other digital cryptocurrencies. He argued that Bitcoin's USP as a 'censorship-resistant decentralized monetary network' sets it apart from other digital assets.
Fidelity Digital Assets' latest report, 'Bitcoin First' targeted the concerns clients raised about BTC. Including Bitcoin being replaced by other cryptocurrencies and the lower upside potential left would be then compared to other coins.
According to Chris Kuiper, Bitcoin has a unique value in itself. He thinks of Bitcoin as a non-incremental sort of innovation similar to the invention of the wheel. In an interview he stated,
“You can’t reinvent something that’s already been invented in terms of the most secure, most decentralized, and what we consider as the best monetary good in the digital asset space.”
Additionally, the head researched mentioned that while some crypto assets consisted of high upside potential, they were also riskier investments. They would be seen as venture capital bets due to these risks associated with them.
Kuiper claims that Bitcoin will remain an important element of the cryptocurrency ecosystem in the future, regardless of its outcomes of it. In a case where multiple blockchains coexist, Kuiper notes that BTC will continue to be a primary 'money anchor' for other crypto assets.
According to Kuiper,
"the thing that gives these other tokens or projects value is that they can somehow tie back to Bitcoin, either be converted back to Bitcoin."
Through his findings, Kuiper concludes that Bitcoin's history has greatly lowered its downside risks, howbeit, it still has enormous upside potential as a store of value, substituting gold.
Earlier this year in January, Fidelity Digital Assets also published a report which stated that 'Bitcoin is a Superior Form of Money.' Fidelity believes that BTC can be the 'primary monetary good.'
In the opinion of Fidelity, Bitcoin’s breakthrough in the digital era was based on the power of superiority, rather than superior payment technology. Fidelity believes in the power of Bitcoin due to two reasons.
Mainly Bitcoin's lack of an organization and secondly, as the first cryptocurrency to come into existence, it has the potential to dominate the digital asset ecosystem.
By the words of Fidelity, this is "due to the very powerful effects of networks."
To the multinational brokerage giant, BTC is a path laid for traditional investors to step into the crypto space. Opinions and sentiments concerning BTC have been divided. On one hand, some expect a cryptocurrency to plummet exponentially in the near future.
However, the majority of JP Morgan's clients believe that Bitcoin has the potential to surpass $60,000 before the year ends. 41% of the majority expect a cryptocurrency to trade at the level by the end of the year, 9% expect it to trade above $80,000, and 5% call for $100,000.