Fidelity forecasts governments will buy Bitcoin

Those who doubt the value of the first cryptocurrency will ultimately be forced to consider its purchase as a form of insurance. Fidelity Digital Assets analysts found this conclusion.

In their view, 2022 will mark a period of government adoption of Bitcoin. In the previous two years, institutional investors began to delve into the new asset class.

Experts compared China’s ban on the first cryptocurrency and its El Salvador’s endorsement as legal tender.

“Time will, without a doubt, show which path is more successful.”, the analysts wrote.

Fidelity declined to believe in a scenario of a direct ban on digital gold by a majority of countries, arguing that in such a case they would lose a substantial portion of wealth and opportunities. Analysts are convinced that the example of El Salvador will be followed by other countries.

“Here, a high-stakes game theory will apply — if adoption rises, countries that today receive bitcoins will be in a better competitive position than those who delay. In other words, small costs today can be paid as hedging against potentially much larger costs in the future,” — the experts explained.

In 2021, former Tonga parliamentarian Tonga Lord Fusituʻa discussed with Strike CEO Jack Mallers [helping El Salvador implement the Chivo wallet] the technical side of the initiative and considered the idea of placing part of the country’s reserves in Bitcoin worth $750 million. Remittances to Tonga account for 37% of GDP.

Tonga 🇹🇴 may be next nation to adopt #Bitcoin

Lord Member of Parliament @LordFusitua says he’s already chatting with @jackmallers and is looking to buy #bitcoin with the nation’s $750 million of reserves.

Remittances also make up 37% of their GPD. pic.twitter.com/mk1cxMC4Ul

— Documenting Bitcoin 📄 (@DocumentingBTC) June 9, 2021

Moody’s criticised the Salvadoran government’s purchases of Bitcoin.

Earlier, experts from IMF stated a similar position.

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