Bitcoin is good for settlements …

Bitcoin is good for settlements …

Why Comparing Bitcoin to Visa Doesn’t Make Any Sense

Contents

Bitcoin is suitable for payments between governments – Fidelity
CONTENT

  • Bitcoin’s flaws make it valuable, Fidelity says

  • In the long term, cryptocurrency can be used by central banks for settlements

  • Forks will not displace Bitcoin from the leading position in the near future

International consortium of news organizations, developing standards for transparency.

The financial giant told what the problem of the main cryptocurrency is and how to compensate for it

Bitcoin’s volatility and limited supply are “forced trade-offs”. This opinion was expressed by the head of the research department of Fidelity Digital Assets Ria Butoria. According to Butoria, bitcoin’s volatility provides “perfect inelasticity of supply and laissez-faire in the market.” However, the top manager of Fidelity Digital Assets believes that with the wider adoption of Bitcoin and the development of investment products, volatility will continue to decline..

Bitcoin is good for settlements ...

“… the trajectory of a new asset from little awareness and acceptance to a global store of value [value] is unlikely to be linear,” Butoria wrote..

Join our telegram channel to be in main trends course crypto market.

So far, bitcoin, according to Fidelity Digital Assets, exists in the status of an “emerging store of value.” An American financial company has compared the rise of bitcoin to the state of gold in the 1970s. After the US unilaterally abandoned the gold standard, the role of the precious metal remained unclear, leading to annual volatility. Roughly the same thing is happening now with bitcoin.

Bitcoin has failed to establish itself as a legal tender due to weak transaction throughput. Nevertheless, the cryptocurrency offers a much more convenient way to transfer value at low commission costs than traditional counterparts, according to Fidelity Digital Assets. The company believes that bitcoin is convenient for conducting global settlements between enterprises, central banks and even governments..

Bitcoin is good for settlements ...

Neutral product

Also in Fidelity Digital Assets note that criticism of bitcoin as a means of money laundering and sponsoring terrorism has no basis. Bitcoin (like cash or Internet technology) is neutral, writes Butoria. The cryptocurrency offers both new characteristics that have a positive impact on society and a toolkit for attackers who use decentralized and censorship-resistant characteristics of bitcoin, according to the company..

Learn how to trade on the cryptocurrency market with BeInCrypto partner – StormGain cryptocurrency exchange

Despite the open source code and many forks of Bitcoin, the original cryptocurrency is still the leading one and is unlikely to lose this status in the near future, according to Fidelity Digital Assets. While competitors have tried to improve Bitcoin (for example, its limited transaction bandwidth or volatility), this has been due to core properties that already make a cryptocurrency valuable by definition (for example, perfect scarcity, decentralization, immutability).

“This explains why bitcoin continues to dominate in terms of market capitalization, investors, users, miners and validators, as well as retail and institutional infrastructure and products,” said Ria Butoria, head of research at Fidelity Digital Assets..

Bitcoin is good for settlements ...

Fidelity has long been optimistic about the future of Bitcoin. In mid-October, for example, the company announced that bitcoin would be better able to weather the economic hardships of the next few years than traditional assets..

At the time of this writing, the price of BTC / USDT is $ 16,286.

What do you think? Share your thoughts with us in comments and join the discussion in our Telegram channel.

Disclaimer

All information, contained on our website, published on principles of good faith and objectivity, and for informational purposes only. Reader bears full responsibility for any actions, committed by him on the basis of information, obtained from our website.

Share Article

Share