Fidelity Investments calls Bitcoin a store of value and a hedge against financial-system risks

The Fidelity Investments unit that handles digital assets published a report. It highlights Bitcoin’s relevance as an “aspirational store of value” and as an “insurance policy” against problems in the financial system.

Introducing the first report in our Bitcoin Investment Thesis series by @riasearch, highlighting #bitcoin as an aspirational store of value. Please download and share. Thanks to the many experts and investors that contributed to this piece!

Download here: https://t.co/KkVH0Db0XC pic.twitter.com/vXADMHyqEW

— Fidelity Digital Assets (@DigitalAssets) July 29, 2020

Analysts at Fidelity Digital Assets (FDAS) pointed to Bitcoin’s alignment with the role of a store of value. They noted that it has not yet achieved that status, but the potential is driven by a “decentralised settlement system and a scarcity of cryptocurrency.”

“Many still do not regard Bitcoin as digital gold. Once that happens, the price will move,” the report notes.

The report cites concerns about the ongoing expansion of fiat currencies by leading central banks in the COVID-19 era, which has undermined confidence in traditional finance.

“The unknown consequences of record-low interest rates, unprecedented levels of global monetary and financial stimulus, and deglobalisation—all of this adds fuel to the fire of awareness and adoption,” the analysts noted.

Researchers noted that you do not need to be a philosopher to understand that dollars have doubled in supply, while Bitcoin has halved since the last halving.

As a long-term driver of broad adoption, FDAS pointed to the coming transfer of $68 trillion in capital from older generations to millennials, who trust Bitcoin more.

The assets under management at Fidelity Investments stand at $7.3 trillion. The unit focused on providing institutional investors with trading services for Bitcoin and Ethereum was launched in October 2018.

In June, Fidelity Investments found that 36% of the 774 large clients surveyed in the United States and Europe had added digital assets to their portfolios.

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