Fidelity Report Highlights Bitcoin’s Superiority
Asset management giant Fidelity has recently released a report emphasizing the superiority of Bitcoin compared to other digital assets. Titled “Bitcoin First Revisited: Why investors need to consider bitcoin separately from other digital assets,” the report asserts that Bitcoin is a distinct cryptocurrency.
Bitcoin as a Monetary Good
The report argues that Bitcoin possesses unique qualities that make it unlikely to be surpassed by any other digital asset. Fidelity claims that Bitcoin is a “monetary good” that exhibits the characteristics of “good money,” including durability, divisibility, fungibility, portability, verifiability, and scarcity.
In a comparison with gold and fiat currency, Bitcoin comes out on top in terms of these characteristics. While Bitcoin fulfills six out of six criteria (except for a long track record), gold only meets four, and fiat currency only meets two.
Finite Supply and Decentralization
The report also highlights Bitcoin’s finite supply, with only 21 million bitcoins ever to be created. It emphasizes the decentralized nature of the Bitcoin network, stating that no single entity owns or controls it. The 21 million supply cap was written in the original Bitcoin source code.
Bitcoin’s Potential Dominance
Fidelity believes that Bitcoin has the potential to become the primary monetary good. While not claiming certainty that it will be the sole form of money in the future, Fidelity expects Bitcoin to rise above all others.
Hot Take: Fidelity Emphasizes Bitcoin’s Unmatched Qualities
Fidelity’s recent report underscores the exceptional attributes that distinguish Bitcoin from other digital assets. With its high level of security, decentralization, and role as sound digital money, Fidelity asserts that Bitcoin reigns supreme. As a “monetary good” fulfilling the characteristics of “good money,” Bitcoin surpasses gold and fiat currency in durability, divisibility, fungibility, portability, verifiability, and scarcity. Fidelity’s report also highlights the finite supply and decentralized nature of Bitcoin, further solidifying its potential dominance in the future.
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