Fidelity Launches Bitcoin Custody Services, Are The Institutions Here To Stay?
Many people in the crypto world have defined 2019 as the year in which we’ll see the appearance of the institutional investors in the industry. Fidelity has finally launched its Bitcoin (BTC) custody services now, which means that there is a big chance that this affirmation is true.
With this comes the hope that the bear market will finally end soon and everybody will see the greens again. However, by welcoming the institutional investors, is the crypto market not abandoning its most crucial beliefs and principals? That is the question that was asked by NewsBTC.com recently.
Fidelity And Bitcoin
The CEO of Fidelity Investments, Abigail Johnson, has talked about the blockchain technology and the crypto world back in May 2017. According to her, the technology was interesting and it even had potential, but it had too many challenges like not being properly regulated, not being scalable and needing more governance.
However, almost two years after, it looks like the situation has changed a lot since Fidelity Investments has created Fidelity Digital Assets (FDAS), which will be working with the blockchain technology and Bitcoin.
At the moment, Fidelity Digital Assets is testing their products and we’ll see them offering Bitcoin services for the richest people in the world now. Family offices, pensions, hedge funds, you name it, the crypto world will be a part of the institutional game now.
The “Bitcoin Paradox”
All of this would actually be pretty good news, generally speaking, and we can all agree that this may impact prices well, which is always a win-win situation for traders. However, NewsBTC.com actually has a great point: when we consider the “crypto ethics”, this is actually rather contra productive.
Why? Because Bitcoin was originally anti-system, anti-Wall Street and nothing in the whole world screams Wall Street better than Fidelity Investments.
This has, unfortunately, split the community apart. A lot of people are expecting to make a lot of money from Fidelity’s move since such a huge company always has a positive effect in making the prices of any asset going up. With Fidelity around, the bear market may be starting to dissipate.
However, the idealists believe the exact opposite: that Fidelity Investments is only looking to Bitcoin now because it is already a legitimate investment. Accepting institutional money would go against everything that Satoshi Nakamoto, the mythical creator of Bitcoin, stood for.
The paradox of Bitcoin is that in order for the token to create the revolution that it wants to make so hard, it needs adoption and adoption never actually happens without centralized authorities, or at least that is what NewsBTC.com defended on their article.
What about you? Are you happy with Fidelity Investments going onboard the Bitcoin train or do you would have preferred if Bitcoin was left alone to the people?