Fidelity Says Bitcoin Is 'a Superior Form of Money'

Fidelity Digital Assets has released a report explaining why bitcoin is a superior form of money. The report discusses the future of the digital asset ecosystem and compares bitcoin to newer and smaller cryptocurrencies. The report addresses some concerns investors have including whether bitcoin “may be vulnerable to innovative destruction from competitors” or whether the cryptocurrency “offers the same potential reward or upside as some of the newer and smaller digital assets.”

Report authors Chris Kuiper and Jack Neureuter explained, "Traditional investors typically apply a technology investing framework to bitcoin, leading to the conclusion bitcoin as a first-mover technology will easily be supplanted by a superior one or have lower returns". They noted, “Bitcoin is currently the most secure and decentralized network but, at the base or native network layer, it is not the most scalable.” This has led to a boom in the digital asset ecosystem, they wrote.

By Amy Liu

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