Bitcoin is still young, and its adoption is still at an early stage. Despite this, Fidelity’s report suggests it has the potential to grow to unprecedented heights in the near future. After it’s existence for just ten years, it does not have the kind of popularity that gold and other stores of value have earned after centuries of existence, but its investors are starting to see the potential in it, the report says.
Bitcoin may evolve to serve more purposes
Bitcoin currently serves as a digital currency. According to the whitepaper, it is peer-to-peer digital cash, which can be used to buy and sell globally with no boundaries. Bitcoin faces some challenges such as its high cost of transaction and slow transaction. However, Fidelity’s report shows that its use cases may get diversified eventually as the cryptocurrency space matures. Fidelity Digital Assets’ findings suggest that the investors are getting more interested in the asset as a potential investment. Although Bitcoin currently faces opposition because of its volatility as the main weak point cited by antagonists, investors’ perception of the asset has historically changed as they stay longer in the industry and get to understand Bitcoin better. Because of this, the digital investment giant sees the potential of Bitcoin becoming a popular store of value in the near future.
$7 trillion in investment under management
Fidelity Investments is one of the world’s largest financial services providers. It has over $7 trillion in investment under management and currently has 1.3 million trades per day. It recently created a digital asset platform known as Fidelity Digital Assets which is championing the cause of bringing Bitcoin as an investment to institutional investors. The platform also offers digital custodial services to this class of investors which is considered to be pivotal in boosting their confidence to invest more in digital assets. With these efforts in place and with Bitcoin’s increasing scarcity, more investors may be running to Bitcoin as an escape from the U.S Dollar which is losing its value fast.
