Fidelity Digital Assets: Bitcoin Should Be Evaluated Separately in Crypto Portfolios
Fidelity Digital Assets (FDA), an affiliate of the third-largest asset manager in the world, is bullish on Bitcoin (BTC) and argues that it should be assessed differently from other digital assets in crypto portfolios. The company’s recent research report suggests that Bitcoin should be viewed as an emerging monetary good, while other digital assets should be considered as venture capital-like investments.
The report emphasizes that Bitcoin’s primary value proposition is its role as a store of value and a scarce monetary asset. It highlights that no other blockchain can surpass Bitcoin in terms of decentralization and security without making trade-offs. The report also mentions Bitcoin’s powerful network effects, its track record of surviving threats and attacks, and its potential to emerge as the dominant monetary network.
In contrast, non-Bitcoin digital assets are seen as higher-risk investments with returns similar to venture capital. The report concludes that investors should evaluate Bitcoin separately as a monetary asset before considering other higher-risk, higher-return digital assets for their portfolios.
Hot Take: Fidelity Digital Assets Advocates for Separate Evaluation of Bitcoin
Fidelity Digital Assets has published a report highlighting the distinctive value and assessment of Bitcoin in crypto investment portfolios. The report argues that Bitcoin’s role as a scarce monetary asset sets it apart from other digital assets, which exhibit venture capital-like properties. It emphasizes Bitcoin’s secure and decentralized nature, its powerful network effects, and its potential to become the dominant monetary network. In contrast, non-Bitcoin digital assets are considered higher-risk investments with returns similar to venture capital. Fidelity Digital Assets suggests evaluating Bitcoin separately before considering other digital assets for investment portfolios.
By
By
By
By