Why Web2 Investors Should Pay Attention to Bitcoin
Over the past few months, several institutions, including BlackRock, WisdomTree, Invesco, Valkyrie Investments, Ark Invest, VanEck, and Fidelity, have shown serious interest in Bitcoin. These asset managers have even applied for a Bitcoin ETF from the SEC. If you’re a Web2 investor, here are some reasons why you should pay more attention to Bitcoin.
Bitcoin Is More Secure Than Other Coins
Fidelity, in its research, presented several arguments in support of Bitcoin. One of the core arguments is its security features. Fidelity provided numerical data that demonstrates how secure Bitcoin is compared to other coins. According to their research, Bitcoin far exceeds any remaining proof-of-work competitors in terms of computational power required to alter the network’s consensus.
Fidelity also highlighted Bitcoin’s decentralization features as one of its main appeals. Unlike other cryptocurrencies, no single entity can control or restrict data on the Bitcoin platform. The number of holders and active addresses continues to increase, making Bitcoin more decentralized over time.
BTC Leads in Terms of Use Cases
Fidelity believes that Bitcoin’s nature as a scarce store of value makes it relevant in the crypto space. While other assets may establish their product-market fit, most competing digital assets will not be able to serve other important use cases. This results in differing risk-return investment profiles for Bitcoin and other digital assets.
Separating bitcoin investments from other digital asset investments can help new investors develop a framework for investing in cryptocurrencies. Additionally, BTC has the advantage of being less risky than other digital assets due to its lack of coding complexity and its established position as the de facto store of value in the crypto market.
Hot Take: Bitcoin’s Strengths Make It the Best Bet for Web2 Investors
Considering Bitcoin’s superior security, decentralization, and clear-cut use case, it stands out as the top choice for Web2 investors. Fidelity believes that the growth of the digital asset market and potential instability in traditional assets will drive the value of Bitcoin in the coming months. However, it’s important to note that Bitcoin and other cryptocurrencies are high-risk investments, so thorough research and due diligence are crucial.
We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments, so please do your due diligence.
Source: Fidelity
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