Fidelity Digital Assets Pres: Bitcoin Is ‘Extremely Volatile,’ Not A ‘True Store of Value’ Yet
Bitcoin is too volatile to act as a store of value, said the head of the digital assets arm of Fidelity Investments on Thursday. But this is what investors hope that soon it will be a true SoV and continue to pour in.
“We use the word ‘potential store of value’ as bitcoin is still extremely volatile, and by any standard perhaps would not achieve the mantle of a true store of value,” said Tom Jessop, Fidelity Digital Assets President on the Reuters Global Investment Outlook Summit 2020. Adding,
“But aspirationally it is, and that’s one of the reasons why so many investors are now thinking about this space constructively.”
The investment giant Fidelity Investments launched Fidelity Digital Assets in 2018 to offer cryptocurrency trading and custody services.
According to a recent report by the company, Bitcoin has a lot of space to grow due to benign and uncorrelated assets. It further noted that in the current macro backdrop of zero and sub-zero interest rates, “the opportunity cost of not allocating to bitcoin is higher.”
In 2020, Bitcoin made gains of about 170%, and 80% of these returns have been recorded in Q4 only.
During this rally, more and more high-profile people and institutions have become bitcoiners, seeing it as a hedge against inflation. With more and more financial heavyweights backing Bitcoin, the digital asset is gaining momentum as digital gold.
Add comment